Which document is used by auditors to formally accept a new client?
A) Management representation letter.
B) Audit Report.
C) Engagement Letter.
D) Audit Contract.

Question

Quizplus · Accepted Answer

An engagement letter is a document that outlines the terms and conditions of the audit engagement and is used by auditors to formally accept a new client. The letter would typically include the nature and scope of the audit, the responsibilities of both the auditor and the client, and the agreed-upon fees for the service. A management representation letter is a document signed by management to provide written confirmation of certain oral or written statements made during the audit. An audit report is a document that provides the auditor's opinion on the financial statements of the client. An audit contract is a legal agreement between the auditor and the client that outlines the terms and conditions of the audit engagement, including the auditor's scope of work and fees. While an audit contract may be part of the engagement process, it is not typically the document used to formally accept a new client.

Which Document Is Used by Auditors to Formally Accept a New