Lesson: Terms of Engagement, Engagement Acceptance, & Engagement Letter Objectives

In this lesson, Nick Palazzolo will discuss the preconditions required for accepting or continuing an audit or non-audit engagement. He will also explain the importance of obtaining management's agreement on their responsibilities and the factors to consider when management requests a change in the type of engagement. Furthermore, the lesson will dive into the interaction between auditors, management, and those charged with governance. Lastly, Nick will emphasize the importance of documenting the terms of an engagement in a written letter or suitable form of written agreement.