The Accountant Needs to Establish an Understanding with the Client

question 58

True/False

The accountant needs to establish an understanding with the client about the terms of the engagement, any limitations on the use of the financial statements, and the understanding through a written communication with management.

---

Definitions:

Sale of Land

The legal process in which the ownership of immovable property is transferred from one party to another.

Invalid

Not legally or factually sound; without force or effect.

Unenforceable

Describes a contract or agreement that, due to legal deficiencies or irregularities, cannot be legally upheld or enforced.

Contract Clause

A provision included in a contract that specifies the obligations, rights, or restrictions for the parties involved.