Which of the following matters generally is included in an auditor's engagement letter?

Question

Quizplus · Accepted Answer

Choice "A" is correct. An understanding with the client should be established regarding management's responsibilities, which include identifying and ensuring that the entity complies with applicable laws and regulations. The understanding should be documented through a written communication, such as an engagement letter. Choice "B" is incorrect. Judgments about materiality are the auditor's responsibility and would not be included in an engagement letter. Choice "C" is incorrect. Management would not necessarily be responsible for illegal acts committed by employees. Choice "D" is incorrect. The auditor is not responsible for searching for significant internal control deficiencies.

Which of the Following Matters Generally Is Included in an Auditor's