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hello and welcome to this session in which we will discuss the engagement letter as part of the audit planning both the client and the CPA firm must have a clear understanding of the engagement term exactly what are we doing what are we responsible for as Auditors and what is management responsible for matter of fact or think standard mandate you have to have an engagement letter spelling out the objective of the audit the responsibilities of both management and the auditor the financial reporting framework how are we conducting this audit the expected audit report format and any limitation now for publicly traded companies you know the sarbanes actually mandate that the audit committee to enhance Independence hires the auditor not management for private companies management typically signs the engagement letter now the engagement letter might include other services such as Tax Services management consulting as long as its allowed by the professional com code of conduct and regulation