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FORM 1 Engagement Letter FYE Reca

FORM 1 Engagement Letter FYE Reca

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after an auditor is decided to accept a new client or continue with an existing client the auditor needs to formalize that relation through something called an engagement letter the engagement letter is gonna spell out exactly what are the responsibilities of the auditor and what our management's responsibilities as well for example we talk about the engagement objectives which is to perform an audit that's what the auditors doing but management would take responsibility and it would say management's responsibility is the financial statements it's not the auditors responsibility the auditor is going to conduct tests in an attempt to determine with reasonable level of assurance whether the financial statements are free from material misstatement whether due to error due to fraud so that's what the auditor is gonna do but ultimately the financial statements are management's responsibility and that's gonna be spelled out in the engag

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