By Steve Wagner, CPA
Signing the engagement letter provided from your auditor is the first step in the audit process. Read it thoroughly; it contains more than the price of your audit. The engagement letter outlines, in depth, the responsibilities of both the auditor and the auditee.
The auditor (the CPA) is responsible for auditing the financial statement. This means the auditor examines the financial statements and renders an opinion on the financial accuracy and compliance with laws governing federal programs.
The auditee (the project) responsibilities are numerous and include:
• Establishing and maintaining effective internal controls adequate to:
o Comply with laws
o Accumulate accurate financial information
o Prevent and detect fraud
• Compliance with laws, regulations and grant agreements
• Providing auditor all financial records accurately
Please click here to finish reading this article and to see an example of an engagement letter.
Feel free to contact me to answer questions or for further explanation.
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