Preliminary Arrangements Agreed to by the Auditors and the Client

question 58

Multiple Choice

Preliminary arrangements agreed to by the auditors and the client should be reduced to writing by the auditors. The best place to set forth these arrangements is in:

• A) A memorandum to be placed in the permanent section of the auditing working papers.
• B) An engagement letter.
• C) A client representation letter.
• D) A confirmation letter attached to the constructive services letter.

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Definitions:

Number Expressed

A way of representing a quantity or value in terms of digits or symbols.

Thousandths

A fractional part in a series, representing one part out of a thousand.

Hundred-Thousandths

A decimal fraction represented as one part in a hundred thousand, indicating a very small quantity in precise calculations.

Decimal Point

The period between two numerals.