The Purpose of an Engagement Letter Is To

Multiple Choice

The purpose of an engagement letter is to:

A) satisfy the Trade Practices Act which requires that contracts for professional services must be in writing to be enforceable.
B) record the terms of the engagement in writing in order to minimise misunderstandings.
C) notify the audit staff of an upcoming engagement so that personnel scheduling can be facilitated.
D) reduce the audit firm's responsibility to external users of the audited financial statements.