Engagement Letter

Should auditors insist that audit engagement letters identify the third parties to whom the client intends to distribute the audited financial statements?

Relevant professional standards for this assignment are AU Section 230 “Due Care in the Performance of Work,” AU Section 326 “Evidential Matter,” AU Section 330 “The Confirmation Process,” and AU Section 339 “Audit Documentation.”

This research paper is being submitted on March 10, 2013, for Tiffany Krogman, A340/ACG3085 Section 03, Advanced Auditing Concepts & Standards.

The Auditing Standards Board (ASB) redrafted the standards for clarity and reorganized all of the auditing sections (AU) into new one adding C after (AU-C), bringing both significant and subtle changes. For some of the standards only the format changed but others significantly impacted the auditor’s work. This project was very important for the globalization

Eric, a newly-licensed CPA, has followed “all applicable laws, rules, and regulations promulgated by all governing authorities, to include those rules promulgated by administrative agencies and organizations regulating his profession” this was stated in the engagement letter. An engagement letter is what was required of Eric as a Certified Public Accountant (CPA) and that he signed with Cardozo Corporation before he provided them his services, meaning a duty of care existed.

AU Section 315 Communications Between Predecessor and Successor Auditors .01-.13Using the facts from the ZZZZ Best case and professional guidance from AU Section 315, explain the following:

I hope your wedding went well. I apologize for the letter but I do not have your cell and didn’t know when I would see you up at the golf course. I included a brief of your life policy and wanted to check to see if you wanted to update any of the information. If you do just give me a call and I’ll get the proper forms out to you to sign.

A seven-year retention period for audits work papers, second partner review and approval, evaluation of whether internal control structure and procedures include records that accurately reflect transactions and dispositions of

• The auditor 's audit risk - The risk that the auditor may unknowingly fail to appropriately modify his or her opinion on financial statements that are

Section I. The Auditor’s Report With Regard to the Auditor’s Report............................................................................................... II. General Audit Procedures With Regard to Client Acceptance .................................................................................................. With Regard to Client Understanding ............................................................................................. With Regard to Audit Planning

I prepared a draft engagement letter for the City of Richmond using last year’s letter.

Auditors that are new to an engagement are obliged by law to get in touch with the predecessor auditor of the prospective client. This regulation facilitates the information gathering process of new auditors and can already

Secondly, acquire and review all client financial information is a next step auditor should take. Auditor should know where the company is standing in order to analyze any potential risk. By obtaining and examining the client annual reports auditor will have a basis picture of company financial ability

the name of the engagement partner; the name, location, and extent of participation of each other accounting firm that took part in the audit whose work constituted at least 5% of total audit hours; and the number and aggregate extent of participation of

the name of the engagement partner; the name, location, and extent of participation of each other accounting firm that took part in the audit whose work constituted at least 5% of total audit hours; and the number and aggregate extent of participation of all other accounting firms participating