Several communications must be made between the client and the auditor. Some of
ID: 2471296 • Letter: S
Question
Several communications must be made between the client and the auditor. Some of those communications are listed below.
a.Lawyer’s response to a letter of inquiry.
b.Management representation letter.
c.Engagement letter.
d.Management letter.
e.Internal control deficiencies.
f.Communications with individuals charged with governance.
REQUIRED: For each of the items listed above, indicate the following information about the communication.
1.The person(s) responsible for signing the communication.
2.Whether the communication is required or optional under generally accepted auditing standards(GAAS).
3.At what point in the audit process the communication should be sent.
4.The purpose of the communication.
Explanation / Answer
mana.Lawyer’s response to a letter of inquiry. - Lawyer is responsible, it is generaaly acepted auditing standard, it is sent after the audit process, the purpose is to provide the reply to inquiry
b.Management representation letter. - The cairman or CFO is repsonsible for sign, its is under GAAS, Purpose is to know the view point of mnagement.
c.Engagement letter. - It is signed by both the suditor and management. it come under GAAS.
d.Management letter. - It is signed by management.It is signed after the suditing process
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