(A) Objective of the audit of the financial statements
Management’s responsibility for the financial statements
The scope of the audit with reference to appropriate legislation
The form of any report or other communication of the results of the engagement
The auditor may not discover all material misstatements
Provision of access to the auditor of all relevant books and records
Arrangements for planning the audit
Agreement of management to provide a representation letter
Request that the client confirms in writing the terms of engagement
Description of any letters or reports to be issued to the client
Basis of fee calculation and billing arrangements.                                                                                                                                                                                                                                                                                                                                                                                                  (B) Inspection – examination of records or documents in whatever form e.g. manual, computerised, external or internal.
Observation – looking at the processes or procedures being carried out by others.
Inquiry – seeking information from knowledgeable persons, both financial or non-financial, either within or outside the entity being audited.
External confirmation – the process of obtaining a representation of an existing condition from a third party e.g. a receivables letter.
Recalculation – checking the mathematical accuracy of documents or records.
Reperformance – this is the auditor’s independent execution of procedures or controls that were originally performed as part of the entity’s internal system of internal control.
Analytical procedures – evaluation of financial information made by a study of plausible relationships among both financial and non-financial data.                                                                                                                                                                                                                                                                                                                                                                                                                                                          (C)