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Hi Madam, if all the 5 contents required by SA210 present in EL , but EL is drafted and given by Management instead of Auditor. then can we consider this as EL has some discrepancies bcz Management prepared the EL ? Video Details ------------- Standards on Auditing - CA Final SA 210 - Agreeing terms of Audit Engagement #10. Question #. RTP Nov 2020
Answers (4)
Pradnya Bajaj Faculty
EL usually is prepared by management. But signing authorities decide the accountability. So it’s it’s signed and acknowledged, the parties take their responsibilities. So it will be valid
In my articleship experience I have never seen Engagement letter being prepared by management. It is usually the auditor who prepares and send EL to mgt and request them to acknowledge receipt and agree to the terms. Initially signed by partner of the audit and then signed by management. It is given under explanatory material under SA 210.