Can an auditor in addition to the mandatory clause in the engagement letter may also make reference of- 1-The unavoidable risk that some material misstatements may go undetected due to the inherent limitations in an audit 2)The expectation that management will provide written representations 3)The agreement of management to inform the auditor of facts that may affect the financial statements 4)The basis on which fees are computed and billing arrangements 5)Restrictions to the auditor's liability can all this additional clause can be called as non mandatory clause in engagement letter?.
Questions › Category: SA-210 › Can an auditor in addition to the mandatory clause in the engagement letter may also make reference of- 1-The unavoidable risk that some material misstatements may go undetected due to the inherent limitations in an audit 2)The expectation that management will provide written representations 3)The agreement of management to inform the auditor of facts that may affect the financial statements 4)The basis on which fees are computed and billing arrangements 5)Restrictions to the auditor's liability can all this additional clause can be called as non mandatory clause in engagement letter?.
Yes
there are 2 types of matters mandatory and non-mandatory
above things can also be covered as non-mandatory and informative clauses, practically they are written in engagement letter
Sangeeta
Ravi