Engagement Letter from Auditor to Management

Only available on StudyMode
  • Download(s) : 327
  • Published : October 14, 2011
Open Document
Text Preview
Anderson, Olds, and Watershed, CPAs
Chicago, Illinois 60612
December 18, 2009
Mr. Kevin Chen, Chair of the Audit Committee of the Board of Directors Peach Blossom Cologne Co.
1308 Bee Hive Boulevard
Chicago, Illinois 60615

Dear Mr. Chen:
This will confirm our understanding of the arrangements for our audit of internal control over financial reporting performed in conjunction with an audit of the financial statements of Peach Blossom Cologne Co. for the year ending December 31, 2009. We will audit the company’s financial statements for the year ending December 31. 2009. for the purpose of expressing an opinion on the fairness with which they present, in all material respects, the financial position, results of operations, and cash flows in conformity with generally accepted accounting principles. We will also audit the company’s internal control for the year ending December 31. 2009. for the purpose of supporting an opinion on internal control over financial reporting and supporting the audit of the financial statements. We will conduct our audit in accordance with generally accepted auditing standards. Those standards require that we obtain reasonable, rather than absolute, assurance that the financial statements are free of material misstatement, whether caused by error or fraud. Accordingly, a material misstatement may remain undetected. Also, an audit is not designed to detect error or fraud that is immaterial to the financial statements; therefore, the audit will not necessarily detect misstatements less than this materiality level that might exist because of error, fraudulent financial reporting, or misappropriation of assets. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or decline to issue a report as a result of the engagement. We will evaluate internal control and will prepare a written communication regarding all internal control deficiencies,...
tracking img