The engagement letter is known to be a type of agreement that is between the company and the client. It states the details about their professional relationship. It will have information about their conditions, the terms that they are following, their arrangement, and all of the other details that will speak a lot about the professional relationship that they have with each other.
Aside from these details, this will also hold information about the deadlines of projects or the partnership depending on what they have talked about. There will always be differences with the engagement letter depending on the companies and their clients. What matters is all the details will be written in detail.
Sas 108 requires the auditor to document their understanding of the terms of the engagement with the client in an engagement letter. the engagement letter should include the engagements objectives, the responsibilities of the auditor and management, and the engagements limitations. an engagement letter is an agreement between the cpa firm and the client concerning the conduct of the audit and related services. it should state what services will be provided, whether any restrictions will be imposed on the auditors work, deadlines for completing the audit, and assistance to be provided by client personnel. the engagement letter may also include the auditors fees. in addition, the engagement letter informs the client that the auditor cannot guarantee that all acts of fraud wil be discovered. (lo#8-2)
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