One means of informing the client that the auditor is NOT responsible for the discovery of all acts of fraud is the:
A) engagement letter.
B) representation letter.
C) responsibility letter.
D) client letter.

Question

Quizplus · Accepted Answer

The engagement letter is used to specify the terms of the audit engagement, including the responsibilities of the auditor and the client. It is a common practice to include a statement in the engagement letter that the auditor is not responsible for the discovery of all acts of fraud. This helps to manage the client's expectations and clarify the limitations of the audit. Representation letters and responsibility letters may be used in the audit process, but they typically do not address this specific issue. A client letter is not a standard document in the audit process.

One Means of Informing the Client That the Auditor Is