Which of the following statements is/are correct?

Statement 1: On recurring audits, the auditor should consider whether circumstances require the terms of the engagement to be revised and whether there is a need to remind the client of the existing terms of engagement.

Statement 2: The auditor should send a new engagement letter each year to an established client.

Group of answer choices

Only statement 1 is correct

Only statement 2 is correct

Both statements are correct

Both statements are incorrect