ACCA Audit and Assurance (F8) Practice Exam

Which item is NOT included in the Audit Engagement Letter?

1. Identification of applicable financial reporting framework

2. Audit's responsibilities

3. Marketing strategies for the audit

4. Management responsibilities

The correct answer is: Marketing strategies for the audit

The item that is not included in the Audit Engagement Letter is indeed related to marketing strategies for the audit. The Audit Engagement Letter serves as a formal agreement between the auditor and the client outlining the scope, objectives, and terms of the audit engagement. It typically includes the identification of the applicable financial reporting framework, which is crucial for guiding the auditor on how to evaluate the financial statements. Additionally, the letter clearly defines the responsibilities of both the auditor and management. The auditor's responsibilities include providing reasonable assurance that the financial statements are free from material misstatement, while management is responsible for the preparation and fair presentation of the financial statements. Including marketing strategies does not align with the purpose of the engagement letter. Such strategies are generally part of a separate discussion regarding the auditor’s business development and client relations, rather than the technical aspects of performing the audit itself. Therefore, it’s inappropriate for this document, which focuses on the audit process and agreements.