Page 88 - AAA Integrated Workbook STUDENT S18-J19
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Chapter 6 4
6.2 Changes to the engagement letter
The auditor should issue a new engagement letter if the scope or context of the
assignment changes after initial appointment, or if there is a need to remind the client
of the existing terms.
Reasons for changes would include:
Changes to statutory duties due to new legislation
Changes to professional duties, for example, due to new or updated auditing
standards
Changes to other services as requested by the client
6.3 Audit of components of a group
Where the auditor of a parent company is also the auditor of a subsidiary, branch or
division of the group, the audit firm must decide whether to issue a single
engagement letter covering all the components, or a separate letter to each
component.
If the audit firm sends one letter relating to the group as a whole, it is recommended
that the firm should identify in the letter the components of the group for which the
firm is being appointed as auditor.
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