It is for management to determine what internal control is necessary to enable the preparation of the financial report.  The term “internal control” encompasses a wide range of activities within components that may be described as the control environment; …

In some jurisdictions, law or regulation may refer to the responsibility of management for the adequacy of accounting books and records, or accounting systems.  In some cases, general practice may assume a distinction between accounting books and records …

Additional information that the auditor may request from management for the purpose of the audit may include when applicable, matters related to other information in accordance with ASA 720 .  When the auditor expects to obtain other information after the …

One of the purposes of agreeing the terms of the audit engagement is to avoid misunderstanding about the respective responsibilities of management and the auditor.  For example, when a third party has assisted with the preparation of the financial report, …

Section 312 of the Corporations Act 2001 (the Act) requires an officer of the entity to allow the auditor access to the books of the entity and give any information, explanation or assistance required under section 310 of the Act. A management‑imposed …

The roles of management and those charged with governance in agreeing the terms of the audit engagement for the entity depend on the governance structure of the entity and relevant law or …

It is in the interests of both the entity and the auditor, that the auditor sends an audit engagement letter before the commencement of the audit to help avoid misunderstandings with respect to the audit.  In some countries, however, the objective and …

The form and content of the audit engagement letter may vary for each entity.  Information included in the audit engagement letter on the auditor’s responsibilities may be based on ASA 200. [17]   Paragraphs 6(b) and 12 deal with the description of the …

When the auditor is not required to communicate key audit matters, it may be helpful for the auditor to make reference in the terms of the audit engagement to the possibility of communicating key audit matters in the auditor’s report and, in certain …

When relevant, the following points could also be made in the audit engagement letter:  Arrangements concerning the involvement of other auditors and experts in some aspects of the audit.  Arrangements concerning the involvement of internal auditors and …