An engagement letter, commonly referred to as a letter of engagement, is a document used by auditors to delineate clearly the scope of their responsibilities in an audit engagement. It serves as the written confirmation of the auditors' acceptance of the appointment, the scope of the audit, the form of the report, and includes any non-audit services to be rendered.
The Expectations Gap, often referred to as the audit expectations gap, highlights the divergence between what the public perceives auditors are responsible for and what auditors actually are responsible for within the scope of their engagements.
