A common way for a public accounting firm to demonstrate its defence of a lack of duty to perform is by use of a(n)
A)engagement letter.
B)letter of representation.
C)confirmation letter.
D)expert witness.

Question

Quizplus · Accepted Answer

An engagement letter is a written agreement that outlines the terms and conditions of the services to be provided by the public accounting firm to the client. It is signed by both parties and serves as evidence that the client hired the firm to perform specific services. The engagement letter also typically includes a disclaimer that states the limitations of the services provided and any areas where the accounting firm is not responsible. By having an engagement letter in place, the accounting firm can demonstrate that it had a clear understanding with the client about the scope of services to be provided and any limitations on those services.

A Common Way for a Public Accounting Firm to Demonstrate