When an auditor agrees to perform an audit because the preconditions for an audit have been met and the auditor believes that he can gather sufficient appropriate audit evidence to reduce audit risk to an acceptably low level,an engagement letter is prepared.The engagement letter includes:
A)the basis on which fees are computed are based on an unqualified audit opinion.
B)arrangements regarding the methods of testing of the audit,including the composition of the audit team.
C)arrangements concerning the involvement of other auditors and specialists in the audit.
D)arrangements concerning the opinions of internal auditors and other staff of the company.
E)arrangements to be made with the predecessor auditor in the case of a follow up audit.

Question

Quizplus · Accepted Answer

EThe engagement letter typically includes arrangements concerning the involvement of other auditors and specialists in the audit, as well as arrangements to be made with the predecessor auditor in the case of a follow-up audit. These elements are crucial for defining the scope and responsibilities within the audit process.

When an Auditor Agrees to Perform an Audit Because the Preconditions