What Is Initial Audit Engagement

Initial audit engagement – An engagement in which either: (i) The financial statements for the prior period were not audited; or. (ii) The financial statements for the prior period were audited by a predecessor auditor.

What is an initial audit?

Initial audit engagement. An engagement in which either (a) the financial statements for the prior period were not audited, or (b) the financial statements for the prior period were audited by a predecessor auditor.

What is the first step in an audit engagement?

Audit engagement consists of several steps that basically revolve around planning, substantiation, control testing and finalization. The very first step involves providing a letter to the client reminding him about the audit.