| 9. | The auditor shall agree the terms of the audit engagement with management or those charged with governance, as appropriate. (Ref: Para. A21) |
| 10. | Subject to paragraph 11, the agreed terms of the audit engagement shall be recorded in an audit engagement letter or other suitable form of written agreement and shall include: (Ref: Para. A22-A25) |
| (a) | The objective and scope of the audit of the financial statements; |
| (b) | The responsibilities of the auditor; |
| (c) | The responsibilities of management2b; |
| (d) | Identification of the applicable financial reporting framework for the preparation of the financial statements; and |
| (e) | Reference to the expected form and content of any reports to be issued by the auditor and a statement that there may be circumstances in which a report may differ from its expected form and content. |
| 11. | If law or regulation prescribes in sufficient detail the terms of the audit engagement referred to in paragraph 10, the auditor need not record them in a written agreement, except for the fact that such law or regulation applies and that management acknowledges and understands its responsibilities as set out in paragraph 6(b). (Ref: Para. A22, A26-A27) |
| 12. | If law or regulation prescribes responsibilities of management similar to those described in paragraph 6(b), the auditor may determine that the law or regulation includes responsibilities that, in the auditor's judgment, are equivalent in effect to those set out in that paragraph. For such responsibilities that are equivalent, the auditor may use the wording of the law or regulation to describe them in the written agreement. For those responsibilities that are not prescribed by law or regulation such that their effect is equivalent, the written agreement shall use the description in paragraph 6(b). (Ref: Para. A26) |
| 2b In the UK and Ireland, the engagement letter sets out the responsibilities of those charged with governance. |
|
|
Licence and copyright | © 2018, LexisNexis Group a division of Reed Elsevier (UK) Ltd. All rights reserved. |