An engagement letter can affect the CPA firm's legal responsibilities to the client, but does not affect responsibility to external users of audited financial statements.

Question

Quizplus · Accepted Answer

An engagement letter outlines the terms and scope of the engagement between the CPA firm and the client. It can affect the legal responsibilities and obligations of the CPA firm to the client, but it does not affect their responsibilities to external users of audited financial statements, which are established by professional standards and laws.

An Engagement Letter Can Affect the CPA Firm's Legal Responsibilities