Auditor Engagement Letter & Procurement: Fill & Download for Free

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PDF Editor FAQ

If an auditor finds a misstatement and wants to stop an audit, what should they do?

They complete the audit in accordance with the terms of their engagement letter and propose an adjusting journal entry to correct the misstatement. It is up the company’s management whether to book the proposed entry, as the financial statements are the responsibility of management, not the auditor. The auditor’s role is to express an opinion as to whether the financial statements are free from material misstatements.

In practical life, is an engagement letter made between a client and a CA of a CA firm or between a client and a CA firm?

You are asking about with whom engagement letter to be made, Chartered Accountant of Audit Firm, or Audit Firm it self?If auditor of the client is an firm, than engagement letter will be made between client and the Audit Firm (not the CA who is in charge)Whereas, If auditor of client is an individual proprietorship, engagement letter will me made with such individual proprietorship.Hope it clearly understandable.Thanks.(PS - I think your question focus on with whom engagement letter need to be made rather than the engagement letter making, elements, etc.)

What software do the Big 4 accounting firms use?

Hi Jayshivani,Each Big 4 uses different softwares and apps across each vertical. I can specifically answer on behalf of KPMG - Audit.Once an engagement letter is signed and the client is secured, we start with using 'eAudit'. eAudit is an auditor's bank or say, safety vault. Every business process, every audit procedure, every materiality level, every audit observation, every SOP, every TOC observation, every Work Paper and a lot more is all uploaded by us into eAudit over the period of our engagement.KPMG strongly believes that 'Work is not complete until documented' and hence, eAudit is used primarily for documentation.Another software KPMG uses is IDEA. Helps immensely in data analysis. We'd use it for major areas like Revenue and Inventory to perform analysis. You feed the entire dump into it and it throws out amazing patterns. Helps greatly to plan the amount of TOCs and TODs to be done.Cheers.

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