Engagement letters are widely used in practice for professional engagements of all types. The primary purpose of the engagement letter is to:

(a) remind management that the primary responsibility for the financial statements rests with management.

(b) satisfy the requirements of the auditor’s liability insurance policy.

(c) provide a starting point for the auditor’s preparation of the preliminary audit programme.

(d) provide a written record of the agreement with the client as to the services to be provided.

Choose the correct answer.