Engagement Letter
CONTENTS
Paragraph
Introduction ................................................................................................... 1-4
Audit Engagement Letters ............................................................................. 5-9
Recurring Audits ............................................................................................ 10-11
Acceptance of a Change in Engagement ........................................................ 12-19
Appendix 1: Example of an Audit Engagement Letter
Appendix 2: ISA 210 Amended as a Result of ISA 700
International Standard on Auditing (ISA) 210, “Terms of Audit Engagements” should be read in the context of the “Preface to the International Standards on Quality
Control, Auditing, Review, Other Assurance and Related Services,” which sets out the application and authority of ISAs.
* ISA 315, “Understanding the Entity and Its Environment and Assessing the Risks of Material
Misstatement,” ISA 330, “The Auditor’s Procedures in Response to Assessed Risks” and ISA 500,
“Audit Evidence” gave rise to conforming amendments to ISA 210. These conforming amendments are effective for audits of financial statements for periods beginning on or after December 15, 2004 and have been incorporated in the text of ISA 210.
ISRE 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the
Entity” gave rise to a conforming amendment to ISA 210. This amendment is effective for audits of financial statements for periods beginning on or after December 15, 2006 and has been incorporated in the text of ISA 210.
ISA 700, “The Independent Auditor’s Report on a Complete Set of General Purpose Financial
Statements” gave rise to conforming amendments to ISA 210. Implementation of these amendments has been deferred until such time as proposed ISA 800 (Revised and Redrafted), “Special
Considerations―Audits of Special Purpose Financial Statements and Specific Elements, Accounts or
Items of a
Paragraph
Introduction ................................................................................................... 1-4
Audit Engagement Letters ............................................................................. 5-9
Recurring Audits ............................................................................................ 10-11
Acceptance of a Change in Engagement ........................................................ 12-19
Appendix 1: Example of an Audit Engagement Letter
Appendix 2: ISA 210 Amended as a Result of ISA 700
International Standard on Auditing (ISA) 210, “Terms of Audit Engagements” should be read in the context of the “Preface to the International Standards on Quality
Control, Auditing, Review, Other Assurance and Related Services,” which sets out the application and authority of ISAs.
* ISA 315, “Understanding the Entity and Its Environment and Assessing the Risks of Material
Misstatement,” ISA 330, “The Auditor’s Procedures in Response to Assessed Risks” and ISA 500,
“Audit Evidence” gave rise to conforming amendments to ISA 210. These conforming amendments are effective for audits of financial statements for periods beginning on or after December 15, 2004 and have been incorporated in the text of ISA 210.
ISRE 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the
Entity” gave rise to a conforming amendment to ISA 210. This amendment is effective for audits of financial statements for periods beginning on or after December 15, 2006 and has been incorporated in the text of ISA 210.
ISA 700, “The Independent Auditor’s Report on a Complete Set of General Purpose Financial
Statements” gave rise to conforming amendments to ISA 210. Implementation of these amendments has been deferred until such time as proposed ISA 800 (Revised and Redrafted), “Special
Considerations―Audits of Special Purpose Financial Statements and Specific Elements, Accounts or
Items of a