The scope and nature of an auditor's contractual obligation to a client ordinarily is established in the:
A)engagement letter.
B)Corporations Act 2001.
C)management letter.
D)client's constitution.

Question

Quizplus · Accepted Answer

The engagement letter outlines the scope of work to be performed by the auditor, the time period during which the work will be done, and the fees to be charged. It also establishes the auditor's responsibilities and the nature of the auditor's relationship with the client. Therefore, the auditor's contractual obligation to the client is typically established in the engagement letter.

The Scope and Nature of an Auditor's Contractual Obligation to a Client