5. 6. 7. 8. Engagement letters are widely used in practice for professional engagements of all types. The primary purpose of the audit 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 audit programme. D) provide a written record of the agreement with the client as to the services to be provided. Which of the following is NOT part of the responsibility of external auditors in performing audit procedures? A) determining whether the financial statements are free from material misstatement. B) ensuring the financial statements, in all material respects. are prepared in accordance with the applicable financial reporting framework. C) obtaining sufficient appropriate audit evidence for preparing auditors' report D) implementing a control system that will properly record business transactions in the accounting books and records. Which of the following is the primary reason for documenting audit work? A) To give the client a full reporting of all work performed on their behalf. B) To provide a stand-alone medium that gives audit conclusions and supports the auditor's opinion. C) To prevent litigation by other parties that questions the audit performance. D) To supply a point of reference for all auditors performing the work subsequently. The permanent file of an auditor's working papers generally would NOT include A) bond indenture agreements. B) organization chart. C) working trial balance. D) lease agreements.