L5 Notes_Part_10 - Middle of 1st quarter of next year Final...

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© W.R. Knechel Engagement Letters Discuss the errors and omissions in the following sample engagement letter. May 16, 2006 Hunkabobo Accounting Firm, LLA address Ms. Felice Trackman Trackman & Associates, P.A. Address Dear Ms. Trackman: This letter will confirm our agreement to examine the financial statements of Trackman & Associates, P.A. with a view toward determining how accurate they are and whether they were prepared in accordance with GAAP. We will study your company thoroughly. Included in our audit will be a study of the company's internal control structure and any other test we deem necessary. Pursuant to our recent conversation, we will be keeping an especially sharp eye out for employee theft in our detailed tests of the financial statements. We expect to conduct our examination according to the following timetable: Time Frame Preliminary tests of controls Late 4th quarter Auditing
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Unformatted text preview: Middle of 1st quarter of next year Final report Late 1st quarter We appreciate your assistance in securing all the company's paperwork we will need for this engagement and your staff's assistance. Our fee is fixed at $10,000 for the engagement plus additional items such as copying, travel, and the like. Of course, we would be willing to negotiate that fee as circumstances warrant. Unless you have any questions, we will see you late 4th quarter. Yours sincerely, Jeff Awseola, Partner © W.R. Knechel Knowledge of Client’s Business Regulatory environment -How can we obtain information about the industry? Understand Organization’s Business Model -Strategy and objectives -Nature of operating cycle -Key processes -Asset Base and financing structure Nature of information systems Attitudes on financial reporting Contracts and legal obligations Is it auditable?...
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This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

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L5 Notes_Part_10 - Middle of 1st quarter of next year Final...

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