The main purpose of an engagement letter is to _______.
A)avoid any misunderstandings between the auditor and the client
B)advertise the additional services that the CPA firm provides
C)present the conclusion of the audit
D)request any and all information that the CPA firm might need to complete the audit

Question

Quizplus · Accepted Answer

The main purpose of an engagement letter is to avoid any misunderstandings between the auditor and the client. It clearly outlines the responsibilities of both parties, the scope of the audit, the timeframe, the fees, and the deliverables. It helps to establish a professional relationship based on mutual understanding and trust. It also serves as a legal contract between the two parties.

The Main Purpose of an Engagement Letter Is to _______