Question

The scope of the audit including reference to the pronouncements of the ICAI, which the auditor adheres to, generally is communicated to the client in the:
i) auditor's report
ii) engagement letter
ii) Representation letter.

• A. (i) only
• B. Both (i) and (ii)
• C. Both (i) and (iii)
• D. All the above

Answer 1

The correct option is B Both (i) and (ii)

Engagement letter and Auditor's report clearly defines the scope of audit.

It is imperative for an auditor and the entity to have a written confirmation of the scope of audit since that would save any legal complications for the future.

Representation letter/s or MRL (Management Representation letter) are like audit evidences which is provided by the management in response to any queries raised by the auditor.