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Acceptance of Engagement

Auditing

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


bharath bagirath

bharath bagirath

CA Inter

0

11-Jul-24 11:55

119

Answers (4)

It's not possible practically


Himanshu Somani

Himanshu Somani

CA Final

97K+

11-Jul-24 12:36

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


Pradnya Bajaj

Pradnya Bajaj

Faculty

11-Jul-24 13:40

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.


Himanshu Somani

Himanshu Somani

CA Final

97K+

17-Jul-24 12:05

Responsibility is always of the auditor to prepare it . What you have seen is appropriate. The very concept is that it will be prepared by auditor and accepted by management.


Pradnya Bajaj

Pradnya Bajaj

Faculty

17-Jul-24 13:54

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