Highlight the main contents of a letter of engagement

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Reference no: EM133037901

Your firm has been approached by the directors of Portia LTD. a newly formed consultancy firm to undertake the audit for its first complete financial year ended 31 December 2020. Your manager has assigned you the responsibility for leading the team. You have had various discussions with the directors about the timetable and the respective responsibilities of management and the auditor. You have drafted a letter of engagement and have sent it to the managing director for approval and acceptance but the management has not yet responded to your letter.

Required:

Highlight the main contents of a letter of engagement and why a letter of engagement is sent before any new audit appointment is accepted.

Reference no: EM133037901

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