1. Scope of Work: The audit engagement defines the services the auditor will perform and the responsibilities of the auditor, management, and any other parties involved.
2. Standards to be Applied: The engagement should specify the auditing standards and regulations that the auditor will follow during the audit.
3. Responsibilities of Management: The engagement should outline the management's responsibilities in providing access to information, ensuring the accuracy of financial records, and providing explanations and assistance as needed.
4. Timing and Completion: The engagement should include timelines for the completion of the audit and the delivery of the audit report.
5. Fee Arrangements: The engagement should outline the fee structure for the audit services, including any additional fees for out-of-scope services or unexpected complications.
6. Access to Information: The engagement should clarify the auditor's right to access all relevant information and records necessary to complete the audit.
7. Confidentiality: The engagement should include provisions for maintaining the confidentiality of all information obtained during the audit process.
8. Reporting: The engagement should specify the format and content of the audit report, including any required disclosures or opinions.
9. Limitation of Liability: The engagement may include clauses limiting the auditor's liability for damages resulting from the audit work, within the bounds of applicable laws and regulations.
10. Termination: The engagement should outline the conditions under which either party may terminate the engagement, including provisions for notification and any resulting responsibilities or fees.
what are the Terms of the engagement in audit
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