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Professional appointments

3.2 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

3.3 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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