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The letter is written from auditor to client. Therefore, it is customary that the auditor signs the letter, just as you would sign any business letter. In many cases, the letter isn't signed by an individual accountant but instead is signed by the accounting firm as a whole.
The engagement letter is drafted by the company rendering the service, often with the help of a lawyer.
5. It is in the interest of both client and auditor that the auditor sends an engagement letter, preferably before the commencement of the engagement, to help in avoiding misunderstandings with respect to the engagement.
When your firm is hired to perform an audit engagement, you need to have an audit engagement letter drafted and here's why: Prevents scope creep by outlining the scope of the engagement.
An audit letter of representation is a form letter prepared by a company's service auditor and signed by a member of senior management. In the letter, management attests to the accuracy and completeness of the information provided to the service auditors for their analysis.
It is the external body or the auditor of the organization who must keep in mind when he drafts the letter . It must be formal and contain all the detailed data that the management needs regarding financial status. It must give descriptive information on the matter to make the reader understand what the letter conveys.
. 02 The objective of the auditor is to supervise the audit engagement, including supervising the work of engagement team members so that the work is performed as directed and supports the conclusions reached.
It sets the terms of the agreement between two parties and includes details such as the scope, fees, and responsibilities, among others. An engagement letter is considered executed once it is signed by representatives of both parties.