A clear understanding of the terms of the engagement should exist between the client and the public accounting firm, as documented in the engagement letter required by:
A) ASA 220.
B) APES 110.
C) ASA 210.
D) ASA 620.

Question

Quizplus · Accepted Answer

ASA 210 requires an engagement letter to be issued for all audits, reviews, and other assurance engagements. The engagement letter should clearly state the terms of the engagement, including the responsibilities of both the auditor and the client. ASA 220 deals with quality control for audits, while APES 110 is an ethical standard for professional accountants. ASA 620 deals with using the work of an auditor's expert.

A Clear Understanding of the Terms of the Engagement Should