Video: Terms of Engagement, Engagement Acceptance, & Engagement Letter Overview

In this lesson, Nick Palazzolo, CPA, discusses the stages of an engagement, including acceptance, planning, testing, conclusion, and issuance of opinion. The focus is on engagement acceptance and terms, which involve determining if a client can be worked with based on factors such as independence. This lesson applies to not only audit engagements but other types of engagements as well. Through the learning objectives, various aspects of the engagement process will be explored and clearly explained.

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Video Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

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Welcome, welcome. Here we've got our lesson on the terms of engagement, engagement acceptance, and the engagement letter. Generally speaking, how does our, I'll say audit, but mostly most engagements, how do they go? You have this stage where it's engagement acceptance, client acceptance, can you actually work with this client or is there some issue, independence, something like that. Then we get into planning after we sign the engagement letter, then we get into testing, and then we get into conclusions, then we get into opinion. That's the general format of how an engagement is gonna work, and that's how we built out the course here. Let's dive in to our learning objectives to see more about this first step in our audit process and overall engagement process. Like I said, this will apply to audits as well as other types of engagements as well. I'll just usually say audit because this is the audit exam. However, don't think that this is a different process for other engagements unless I specifically mention it.

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Terms of an Engagement

Module: 3 Concepts, 34 Videos

Professional Standards in Audit & Non-audit Engagements Overview

0:46

Professional Standards in Audit & Non-audit Engagements Objectives

2:00

Introduction to Professional Standards in Audit and Non-Audit Engagements

1:00

Terminology in Professional Standards