It is agreed before the audit starts and confirms that management accepts responsibility for preparing the financial statements and for internal control. Fees, timetable and access to information are also covered.
Source: BDS 210
Related terms
Independent auditReasonable assurance provided by an independent auditor on whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework.Appointment and registration of the auditorIn companies subject to independent audit, the election of the auditor by the general assembly for each financial year and the registration and announcement of the election in the trade registry.Auditor independenceThe auditor being free of relationships and interests that could affect their objectivity, and being perceived as such by third parties.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.
Last updated: October 31, 2026 · This definition is for general information only.