(a) Explain why is it important that an auditor should send a letter of engagement prior to undertaking an audit work.
(b) Briefly describe the main contents of a letter of engagement.
(c) Publicity by individual professional accountants in public practice in non- advertising environment is acceptable under certain conditions as provided for under the IFAC’s International Ethics Standards Board for Accountants (IESBA) Code of Ethics.
Briefly illustrate any four conditions in which publicity is acceptable.
(d) The use of negative confirmation requests, ordinarily provides less reliable audit evidence than the use of positive confirmation requests. The auditor should consider performing other substantive procedures to supplement the use of negative confirmations.
Describe the situations where auditor may use negative confirmations when collecting audit evidence.