Letter of Engagement

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Engagement Letter


Reddy and Abel, LLP

Certified Public Accounts

123 Evidence St., Suite 456

Anytown, Oregon

(xxx) xxx-xxxx

June 23, 2011

Mr. Conrad P. Saws

Mt. Hood Furniture, Inc.

1313 Somewhere Place

Another Town, Oregon

Dear Mr. Saws:

This correspondence is to substantiate the perceptive conditions and purpose of our engagement and the character and limits of the services we will supply.

We will review the balance sheet of Mt. Hood Furniture, Inc., as of December 31, 20x4, and the income statement and statement of changes in retained earnings, and cash flow for year end. The purpose of our audit is the appearance of an estimation concerning whether the company financial statements are moderately offered in all substance respects, in conventionality with accounting principles generally accepted in the United States of America. Our audit will be conducted in accordance with generally accepted audit principles

(naplia, 2011). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. If our estimation is less than unqualified, the company will be notified. If, for any cause we cannot conclude the audit, we may refuse to state a judgment or submit information as a result of this engagement.

Our documentation will integrate test of documentary proof sustaining the dealings recorded in the financial records, tests of the corporeal continuation of inventories, and express proof of receivables and payables and definite other assets and liabilities by letters with chosen clientele, creditors, and financial institutions (naplia, 2011). At the close of audit, we will need positive written representation from the corporation concerning the financial statements and associated matters. Because of the test character and other intrinsic boundaries of an audit, together with the intrinsic limitation of any bookkeeping and...