[Anonymous]

Two quick questions – and forgive me if these sound like questions that a 1st grader might ask, but I can’t find definitive answers for either one.

1. Engagement letters are required. The firm completing the audit must send one out to the client before the audit starts. Does it have to be signed and agreed to? I’ve done some MCQs (and gotten them incorrect) regarding this topic….basically, it seems there is no hard and fast standard or regulation stating that the audit doesn’t happen without this contract. Is that the case?

2. A CPA firm has to have some kind of quality control program in place. Does it have to be explicitly “written down”? And, is there a standard that specifically states that the QC program has to be applied to every audit they do?