Engagement Letter. Stephen Hu, CPA, from Taipei, Taiwan, has just accepted a new client, Kiwan Xou. The company will be audited under the ISA and IAS standards. The client will be given an audit opinion and a management letter. The fees are based on hourly fees, the audit will take 125 hours, and will involve one senior (TD3,500 per hour), two staff auditors (TD2,800 per hour), and a partner (TD5,000 per hour). Out-of-pocket expenses are estimated at TD65,000. The payments will be 33 percent at the beginning of the audit with the balance at the end of the audit.

Required:

Based on the above information, write an engagement letter to Kiwan Xou from Steven Hu.