Page 39 - Microsoft Word - 00 IWB ACCA F7.docx

Ethics and acceptance

Changes to the engagement letter

The engagement letter must be reviewed each year to ensure it is up to date.

The auditor should issue a new engagement letter if the scope or context of the
assignment changes after initial appointment.

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

Illustrations and further practice

Look at Illustration 2 in Chapter 3 which shows the wording of an engagement
letter.

35