what are the Terms of the engagement in audit
1. Scope of Work: The audit engagement defines the services the auditor will perform and the responsibilities of the auditor, management, and any other parties involved.
2. Standards to be Applied: The engagement should specify the auditing standards and regulations that the auditor will follow during the audit.
3. Responsibilities of Management: The engagement should outline the management's responsibilities in providing access to information, ensuring the accuracy of financial records, and providing explanations and assistance as needed.
4. Timing and Completion: The engagement should include timelines for the completion of the audit and the delivery of the audit report.
5. Fee Arrangements: The engagement should outline the fee structure for the audit services, including any additional fees for out-of-scope services or unexpected complications.
6. Access to Information: The engagement should clarify the auditor's right to access all relevant information and records necessary to complete the audit.
7. Confidentiality: The engagement should include provisions for maintaining the confidentiality of all information obtained during the audit process.
8. Reporting: The engagement should specify the format and content of the audit report, including any required disclosures or opinions.
9. Limitation of Liability: The engagement may include clauses limiting the auditor's liability for damages resulting from the audit work, within the bounds of applicable laws and regulations.
10. Termination: The engagement should outline the conditions under which either party may terminate the engagement, including provisions for notification and any resulting responsibilities or fees.