The scope of the work to be done by the auditor on the audit is described in which document?
A) Contract letter.
B) Management letter.
C) Representation letter.
D) Engagement letter.

Question

Quizplus · Accepted Answer

The scope of the work to be done by the auditor is described in the engagement letter, which outlines the responsibilities of both the auditor and the client, the objectives of the audit, and the expected outcome of the audit. The contract letter may outline the terms and conditions of the engagement, but it does not specifically address the scope of the work. The management letter is a document generated by the auditor at the end of the audit, which outlines the auditor's observations and recommendations to management. The representation letter is a document that management provides to the auditor at the end of the audit, which represents management's acknowledgement of their responsibility for the financial statements and the accuracy of the information provided.

The Scope of the Work to Be Done by the Auditor