An engagement letter sent to a publicly held audit client usually would not include a:
A)reference to the auditor's responsibility for the detection of errors or irregularities.
B)estimation of the time to be spent on the audit work by audit staff and management.
C)statement that management advisory services would be made available upon request.
D)reference to management's responsibility for the financial statements.

Question

Quizplus · Accepted Answer

An engagement letter sent to a publicly held audit client would typically include references to the auditor's responsibility for detecting errors or irregularities, an estimation of the time to be spent on audit work by audit staff and management, and a reference to management's responsibility for the financial statements. However, a statement that management advisory services would be made available upon request is not typically included in the engagement letter, as this could give the appearance of a potential conflict of interest or compromise the auditor's independence.

An Engagement Letter Sent to a Publicly Held Audit Client