Initial agreements and understandings between the client and auditors should be documented and set forth in a(n) ________.
A)legal letter
B)confirmation letter
C)engagement letter
D)informal memorandum

Question

Quizplus · Accepted Answer

Initial agreements and understandings between the client and auditors are documented and set forth in an engagement letter. An engagement letter outlines the scope of the audit, the expectations of the client, and the responsibilities of the auditor. It also includes terms of payment and potential limitations of liability. This letter serves as an agreement between the client and auditors and establishes the framework for the audit process.

Initial Agreements and Understandings Between the Client and Auditors Should