Responsibilities of the legal auditor: These also vary. For the final review, it is your responsibility to conduct the review in accordance with GAAS. If a letter of commitment is amended, the following steps could be taken: we conduct our review in accordance with international audit standards (or refer to relevant national standards or practices). These standards require us to plan and test in order to obtain sufficient certainty as to whether the finding is free of substantial inaccurate information. An audit includes the review, on the basis of trials, of supporting documents that support the amounts and information contained in the financial statements. An audit also includes an assessment of the accounting principles used and significant estimates made by management, as well as the evaluation of the presentation of the overall financial statements. If the conditions are changed, the legal auditor and the client must agree on the terms. If the legal auditor and the client fail to reach an agreement, the auditor should withdraw from the existing agreement. We look forward to cooperating fully with your staff and hope that they will provide us with all documents, documents and other information requested as part of our audit.
Our fees, which are charged during the work, are based on the time required for the people assigned to the engagement, plus out-of-pocket costs. Individual hourly rates vary depending on the degree and experience and skill required. This will then serve as an assistance to the statutory auditor, in the sense that he will help the statutory auditor assess the resources and planning necessary to carry out the audit. A request from the client to the statutory auditor to change the undertaking may result from a change in circumstances affecting the need for service, a misunderstanding as to the nature of an initially requested review or related service, or a limitation of the size of the undertaking, whether caused by management or by circumstances. In this regard, it is therefore imperative that the review letter be used to minimize the likelihood of misunderstandings between the two parties, since most of the clauses would have been agreed well in advance. Due to the test nature and other limitations inherent in the audit, as well as the inherent limitations of the accounting and internal control system, there is an inevitable risk that even essential misrepresentations will not be detected. Hiring Limitation: A general condition of the letter of commitment is that the client does not try to hire someone into the current audit team. As a general rule, there is a one-year cooling-off period between customer audit work and acceptance of a position with that company. When a new client is admitted, a legal auditor establishes an engagement letter to consolidate the audit agreements between the audit firm and the client. The letter serves as a contract listing obligations and obligations on both sides of the table. Your CPA company prepares the engagement letter.