When an Auditor Agrees to Perform an Audit Because the Preconditions

Multiple Choice

When an auditor agrees to perform an audit because the preconditions for an audit have been met and the auditor believes that he can gather sufficient appropriate audit evidence to reduce audit risk to an acceptably low level,an engagement letter is prepared.The engagement letter includes:

A) the basis on which fees are computed are based on an unqualified audit opinion.
B) arrangements regarding the methods of testing of the audit,including the composition of the audit team.
C) arrangements concerning the opinions of other auditors and specialists in the audit.
D) arrangements concerning the opinions of internal auditors and other staff of the company.
E) arrangements to be made with the predecessor auditor in the case of an initial audit.