Course: Auditing $-$ Material: Principles in Auditing & Other Assurance Services $-$ Ch$\mathrm{.}6$ Preparing an Engagement letter Suppose that you are the CPA in this scenario........ A CPA has been asked to audit the financial statements of a nonpublic company for the first time. All preliminary discussions have been completed between the CPA, the company, the predecessor auditors, and all other necessary parties. The CPA is now preparing an engagement letter. What process would you go through to make sure that the engagement letter is complete? What resources or lists would you consult? What are the stakes if the engagement letter is incorrect or incomplete?