ISA 210 (2)

Question 1

What should the auditor agree?

Answer 1

Terms of the engagement with management or those charged with governance as appropriate

Question 2

Why should agreeing terms of engagement be done before the audit engagement?

Answer 2

To avoid misunderstandings regarding the audit

Question 3

How shall the agreed terms of the audit engagement be recorded?

Answer 3

In an audit engagement letter

Question 4

What must audit engagement letter include (objective)

Answer 4

The objective and scope of the audit

Question 5

What must audit engagement letter include (auditor)

Answer 5

The auditor’s responsibilities

Question 6

What must audit engagement letter include (management)

Answer 6

Management’s responsibilities

Question 7

What must audit engagement letter include (reporting framework)

Answer 7

Identification of the applicable financial reporting framework for preparation of financial statements

Question 8

What must audit engagement letter include (report)

Answer 8

Reference to the expected form and content of any reports to be issued by the auditor

Question 9

What must audit engagement letter include (circumstances)

Answer 9

A statement that there may be circumstances in which a report may differ from its expected form and content