Auditing standards recommend, but do not require, that auditors obtain an understanding with the client in an engagement letter approved by the audit committee of public companies.

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Auditing standards actually require that auditors obtain an understanding with the client, often documented in an engagement letter, and for public companies, this understanding should be approved by the audit committee, making it a requirement rather than a recommendation.

Auditing Standards Recommend, but Do Not Require, That Auditors Obtain