The need for a letter of review stems mainly from the good communication between the statutory auditor and the party engaged on the scope of the work. It also contains subsequent restrictions during the trial. The letter of commitment documents and confirms the acceptance of the designation by the statutory auditor, the purpose and scope of the audit, the extent of the legal auditor`s responsibilities to the client and the form of the potential reports. A contractor who instructs a lawyer to make a land purchase cannot call the lawyer for advice on his divorce. The engagement letter will not say this fact if bald, but the importance will be clear. Engagement Letter is an accountant to his client after receiving notification of his appointment, preferably before the start of the engagement, spit out the extent of his responsibility in order to avoid any misunderstanding as to his commitment and documents and make the acceptance of the appointment, the objectives and scope of the audit, the extent of responsibilities and the form of the relationship to the client. A request from the client to the statutory auditor to change the undertaking may result from a change in circumstances affecting the need for service, a misunderstanding as to the nature of an initially requested review or related service, or a limitation of the size of the undertaking, whether caused by management or by circumstances. Here are the topics you should address in an engagement letter: if the audit is a legal check, the statutory auditor must submit a review to that effect, as required by law, i.e. an appropriate guarantee of the accuracy and fairness of the undertaking.
In unprecedented circumstances, letters of undertaking are most often used as litigation resolution instruments, as they encompass almost all major alliances that could occur during the audit itself. Responsibilities of the legal auditor: These also vary. For the final review, it is your responsibility to conduct the review in accordance with GAAS. The agreed terms must be written and the usual form would be an engagement letter. An engagement letter may include a mandatory mediation or conciliation clause for the relationship. This clause contains guidelines for resolving disputes between the parties.