An engagement letter for an audit:

Question

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An engagement letter for an audit is a formal agreement between the auditor and the client that outlines the scope of the audit, the responsibilities of management and the auditor, and the expected outcome of the audit. The purpose of the engagement letter is to distinguish management's responsibilities throughout the audit process from the auditor's, and to set the expectations for the audit process. The engagement letter does not provide recommendations to management about improvements in its system of internal controls over financial reporting (ICFR), specify the high-risk areas that will be the focus of the audit engagement, or specify the type of audit opinion that will be issued.

An Engagement Letter for an Audit