An engagement letter is more than a fee confirmation. In Taiwan, it records who prepares the financial statements, who provides confirmations, and what happens if records arrive late.
Ask whether related-party schedules are in scope from day one. Many subsidiaries of overseas groups keep intercompany balances on separate ledgers; if those are excluded from planning, year-end fieldwork expands suddenly.
Clarify the expected opinion date against the Company Act filing calendar. An auditor cannot accelerate opinion issuance when bank confirmations or inventory count evidence remain open.
Request a plain-language summary of materiality and sampling. Directors do not need the statistical formula, but they should know which balances will receive detailed testing versus analytical review.
Finally, confirm how management letter points will be discussed. A short closing meeting before the letter is finalized prevents surprises when the audit committee reviews findings.