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Cover Letter - The audit report is issued in draft for the Association to review. The cover letter explains what information must be returned to our office before the audit report (and other letters) can be finalized. Independent Auditor's Report - This is our report on the Association's financial statements.
In a professional engagement, the CPA agrees, on the one hand, to comply with professional and ethical standards; you, on the other hand, agree to cooperate, to render assistance, and to compensate the CPA.
Client representation letters are generally useful in providing information about matters that cannot be objectively tested because they depend on management's knowledge, such as the board's intentions and the completeness of information provided to the auditor.
The auditor-client relationship is an important interdependent relationship in the audit environment, as the financial statements are a joint product of both the client's and auditor's actions (Antle and Nalebuff 1991).
An auditor's job involves evaluating and verifying financial information, records, and statements to ensure accuracy, compliance with regulations, and transparency. Auditors play a crucial role in providing independent assessments of financial data to clients and third parties.
The letter should be signed by those members of management with overall responsibility for financial and operating matters whom the auditor believes are responsible for and knowledgeable about, directly or through others in the organization, the matters covered by the representations.
The engagement letter documents and confirms the auditor's acceptance of the appointment, the objective and scope of the audit, the extent of the auditor's responsibilities to the client and the form of any reports.
An audit engagement letter is a written agreement that outlines the scope of your work as an auditor, what the client is responsible for, how long the audit is estimated to take, and details about your fee, among other things. It is a binding contractual agreement between you and each of your clients.