The engagement letter includes provisions for the electronic filing of the client company's financial reports with the SEC. These provisions include consents which will authorize the:
A) use of the audit firm's logo on each page of the filing.
B) use of the audit firm's name in the electronic submission.
C) retention of audit evidence for a period of 10 years following the audit engagement.
D) dissemination of the audit report to the auditor's other clients.

Question

Quizplus · Accepted Answer

The provisions in the engagement letter for electronic filing with the SEC typically include authorizations for the use of the audit firm's name in the submission. This is necessary to comply with SEC rules on the identification of the auditor in financial filings. The use of the audit firm's logo or dissemination of the audit report to other clients is not relevant to SEC electronic filings. Retention of audit evidence is a requirement of generally accepted auditing standards, but it is not specific to SEC filings.

The Engagement Letter Includes Provisions for the Electronic Filing of the Client