Question
A non-public company, has asked your CPA firm to audit the complete financial statements for Year 2. Your partner has recently asked you to draft
A non-public company, has asked your CPA firm to audit the complete financial statements for Year 2. Your partner has recently asked you to draft an engagement letter for this engagement. This is your first engagement letter and you have referenced other engagement letters as a starting point for drafting the engagement letter. From the list of statements below, click in the associated cell and select the statement that most likely would be included in the engagement letter. You may only select 8 statements from the list below. Selections should only be utilized once.
Statement 1 | Our audit will be conducted with the objective of expressing an unmodified opinion on the financial statements. |
2 | We plan to perform substantive analytical procedures for testing warranty expense. |
3 | Billings will be rendered on a quarterly basis and are payable upon receipt. |
4 | Our fees will be based on opinion rendered |
5 | We will issue a written report upon completion of our audit of Company's financial statements. |
6 | Management will make available to the auditor draft financial statements and any accompanying other information in time to allow us to complete the audit in accordance with the proposed timetable. |
7 | We plan to utilize your internal auditors to determine planning materiality. |
8 | Management will provide us with unrestricted access to persons with the entity from whom we determine it necessary to obtain audit evidence. |
9 | Our audit will be conducted on the basis that management acknowledge and understand that they have responsibility for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the USA. |
10 | We will plan and perform an audit in accordance with GAAS, which will discover all material misstatements. |
11 | Management will provide us with access to all the information of which management is aware that is relevant to the preparation and fair presentation of the financial statements such as records, documentation, and other matter. |
12 | As part of our audit process, we will request from management, written confirmation concerning representations made to us in connection with the audit |
13 | Circumstances may arise in which it is necessary for us to modify our opinion, add an emphasis of matter or other matter paragraphs, or withdraw from the engagement |
Statements that most likely would be included in the engagement letter: (Choose 8)
1.
2.
3.
4.
5.
6.
7.
8.
________________________________________________
Hi, I just need someone check my work please, Thank you!
1. Statement 3
2. Statement 4
3. Statement 11
4.Statement 9
5.Statement 6
6.Statement 5
7.Statement 7
8.Statement 13
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