[kjoonx2]

Which of the following is required documentation in an audit in accordance with generally accepted auditing standards?

A. A written audit program describing the necessary procedures to be performed (Answer)

B. A written engagement letter formalizing the level of service to be rendered

Ok, I know why A is the answer, but my real question is why Wiley’s explanation for B say this “While it may be desirable to use written engagement letter, it is not required”

Is this true? You don’t need an engagement letter for an audit? I’m pretty sure I saw that you need an engagement letter during an audit when I was doing research questions.

[stoleway]

Engagement letter is neccesary in every audit, engagement letter is issued out to establish an understanding between the client and the auditor as far the engagement or audit is concern. It includes acceptance, the need to confirm the nature of the engagement and what it entails, it spells out your responsibility and the clients responsibility.

After acceptance of the engagement, GAAS requires a detailed documentation of how the audit was performed, what was done and the conclusion reached by the auditor.

Audit documentation is very broad and a copy of your engagement letter will also be in this file.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[stoleway]

Engagement letter is neccesary in every audit, engagement letter is issued out to establish an understanding between the client and the auditor as far the engagement or audit is concern. It includes acceptance, the need to confirm the nature of the engagement and what it entails, it spells out your responsibility and the clients responsibility.

After acceptance of the engagement, GAAS requires a detailed documentation of how the audit was performed, what was done and the conclusion reached by the auditor.

Audit documentation is very broad and a copy of your engagement letter will also be in this file.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Anonymous]

The engagement letter is not required it is “presumptively mandatory”- big difference.

Pretty much means that you should always use an engagement letter except however, in rare circumstances, the auditor may depart from a presumptively mandatory requirement provided the auditor documents his or her justification for the departure.

Written audit programs describing procedures to be performed and representation letters are required.

Audit wording can be tricky but hope that helps!

[Anonymous]

The engagement letter is not required it is “presumptively mandatory”- big difference.

Pretty much means that you should always use an engagement letter except however, in rare circumstances, the auditor may depart from a presumptively mandatory requirement provided the auditor documents his or her justification for the departure.

Written audit programs describing procedures to be performed and representation letters are required.

Audit wording can be tricky but hope that helps!

[kjoonx2]

Thanks you guys, i think i get it now!

[kjoonx2]

Thanks you guys, i think i get it now!

[Author]

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