Annual Audit Manual
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3041 Introduction
Apr-2015
Overview
This topic explains:
- CAS objective related to the terms of the audit engagement
- Definitions relevant to CAS 210
- Risk Management implications
CAS Objective
The objective of the auditor is to accept or continue an audit engagement only when the basis upon which it is to be performed has been agreed, through (CAS 210.3):
(a) Establishing whether the preconditions for an audit are present; and
(b) Confirming that there is a common understanding between the auditor and management and, where appropriate, those charged with governance of the terms of the audit engagement.
CAS Guidance
For the purposes of this CAS, references to “management” should be read hereafter as “management and, where appropriate, those charged with governance” (CAS 210.5).
OAG Guidance
Each OAG audit team will have a standard audit engagement letter. Consider the matters and sample wording in the template letter available on the INTRAnet, tailored where appropriate, for inclusion in each audit team’s standard audit engagement letter. OAG Audit 3043 provides further guidance.