Which of the following is true in the case of an auditor communicating with a continuing client in the beginning of a contract?
A)A new engagement letter is not needed if the terms of engagement remain unchanged
B)No reminder of the engagement terms is needed if no revisions are made to the engagement letter
C)No reminder of the engagement terms is needed if a continuance decision is made.
D)No engagement letter is needed in all cases of continuance decision.

Question

Quizplus · Accepted Answer

A new engagement letter is not necessarily required for each period if there are no changes to the engagement terms. However, it is good practice to ensure that the terms of the engagement are understood and agreed upon, which can sometimes involve issuing a new letter or a reminder if there are significant changes or a significant amount of time has passed.

Which of the Following Is True in the Case of an Auditor