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1.From the given options, the following should be included in the engagement letter -

1. The applicable financial reporting framework to be used for the statements.

2. Scope and timing of Audit.

3. Overview of responsibilities of management.

The overall audit opinion is not included in engagement letter. It is a part of audit report.

Overview of the auditor’s responsibility for the preparation of the financial statement is not applicable. Auditor has no responsibility to prepare financial statements. He examines the financial statements and expresses opinion thereon.

2.Audits can be performed monthly, quarterly or twice a year or omce a year. Before defining an audit frequency , it is important to understand the criteria which should be considered as not all process es should be considred on the same time. consideration shoud be given to the cost, benefit, and cadence of the proposed frequency of the process being audited. The nature of some continuous audit objectives , such as deterrence or prevention , may also determine frequency and variation. Frequency of an audit can be based on the following factors i.e.

• Complexity of the process:Processes invlving high risks of mistatementor deficiences should be audited on a more frequent basis. Processes with low risk can be audited just once a year or every other year.
• Maturity of the process:Newly incoporated processes should be audited more frequently as compared to well established processes that run efficiently.
• Past experience:Processes that have faced frequent defieciencies or non conformities in past , shoud be audited on a more frequent basis , such as quarterly or twice a year.
• Other factors: Budget of the organization or regulatort requirements shoud also be considered while determining the frequency of the audit.

3.

As per IFRS, Minority Interest is shown under the Equity section of the consolidated balance sheet, whereas US GAAP offers much flexibility for reporting. Under US GAAP, it can be reported under the liabilities or equity section.

Checkout the difference between IFRS vs. US GAAP

The reason for separate line items with respect to such interest is to give a clear picture to the users of financial statements about the various controlling interest in the company. It helps them in making informed economic decisions and also helps them in making comparisons on the shareholding patterns of different companies. It plays a huge role in analyzing various investment opportunities and calls for its consideration while computing various ratios and analyzing financial statements.

One other reason for separate disclosure is to provide certain protection to minority shareholders as they are in a position of disadvantage. Since they are hardly involved in the decision-making process, there is a need to protect them oppression and mismanagement of conduct of the company’s affairs by management