"Audit Engagement Letter Template"

What Is an Audit Engagement Letter?

An Audit Engagement Letter is a document that arranges the relationship between an auditor and a client. The purpose of the document is to establish an agreement between the involved parties, which will define the circumstances of how the services will be provided by the auditor to the client.

The letter can contain the different scopes of services that the auditor provides, which are dedicated to different purposes such as payroll audit, compliance audit, operational audit, etc. For example, the subject of a tax Audit Engagement Letter can be services dedicated to checking financial statements, balance sheets, and profit and loss accounts for income-tax purposes.

An Audit Engagement Letter template can be found through the link below.

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How to Write an Audit Engagement Letter?

An Audit Engagement Letter can consist of parts, which include the following:

  1. Addressee. In the first part of the document, the sender can designate the name and the address of the client. It will help make sure the document will reach the right addressee.
  2. Introduction. Here the sender can introduce themselves and state on behalf of which company they are writing. This part of the letter should provide the client with the name of the company, its location, and the name of the auditor.
  3. Information About the Services. Senders can use this part of the document to indicate the audit services that will be provided to the client. Here they can also describe the purpose of those services, what they include, and which standards will be followed.
  4. Fee. The sender should designate the fee that the client is supposed to pay for the services, as well as when it should be transferred. For the convenience of the client, the sender can state the price of each service and the total price.
  5. Engagement Period. Here, senders can indicate the dates when the engagement period starts and when it finishes. After the engagement period is over the sender provides the client with the report and no longer provides the services mentioned above.
  6. Rights And Responsibilities. The obligations of the client and the sender, as well as their rights, can be described in this part of the document. If the sender needs the client to provide certain documents, disclose financial information, or do other things in order for services to be executed, they should include those statements in the document.
  7. Client's Acknowledgement. This part of the letter is supposed to provide the client with an area where they will confirm that they fully understand the content of the letter and accept it. The acceptance must be verified with the client's signature.
  8. The Sender's Signature. To validate that everything included in the document is true and correct, the sender should sign the letter.

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Audit Engagement Letter
From: _​ _ _________________________
To:​ _ _____________________________
Sender’s Name
Recipient's Name and Title
_________________________________
_________________________________
Organization
_________________________________
_________________________________
Sender’s Address
_________________________________
_________________________________
, ​
City, State, ZIP Code
Recipient's Address​
C ity, State, ZIP Code
_________________________________
D ate
Dear ____________________________,
Name of Auditee
The Internal Audit Team is planning its audit for [​
A udit Process​
] . The objectives of this
audit will be:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
List Actual Objectives Here
Examples:
○ Reliability and Integrity of Financial and Operational Information;
○ Compliance with Laws, Regulations, and Contracts;
○ Safeguarding of Assets;
○ Effectiveness and Efficiency of Operations of the [​
A udit Area​
] ;
○ To follow-up on recommendations included in prior audit reports.
The proposed timetable for this year's audit is as follows:
● Start date in the field: [​
D ate​
] ;
© ​
T EMPLATEROLLER.COM
Audit Engagement Letter
From: _​ _ _________________________
To:​ _ _____________________________
Sender’s Name
Recipient's Name and Title
_________________________________
_________________________________
Organization
_________________________________
_________________________________
Sender’s Address
_________________________________
_________________________________
, ​
City, State, ZIP Code
Recipient's Address​
C ity, State, ZIP Code
_________________________________
D ate
Dear ____________________________,
Name of Auditee
The Internal Audit Team is planning its audit for [​
A udit Process​
] . The objectives of this
audit will be:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
List Actual Objectives Here
Examples:
○ Reliability and Integrity of Financial and Operational Information;
○ Compliance with Laws, Regulations, and Contracts;
○ Safeguarding of Assets;
○ Effectiveness and Efficiency of Operations of the [​
A udit Area​
] ;
○ To follow-up on recommendations included in prior audit reports.
The proposed timetable for this year's audit is as follows:
● Start date in the field: [​
D ate​
] ;
© ​
T EMPLATEROLLER.COM
● Estimated weeks to complete: [​
N umber of Weeks​
] .
The audit team will include the following members:
● [​
N ame​
] , [​
P osition​
] ;
● [​
N ame​
] , Staff Auditor;
● [​
N ame​
] , Staff Auditor.
At the beginning of our audit, we would like the opportunity to meet with you to discuss
our audit objectives and solicit your input. Our goal is to perform an effective and
efficient audit. We will need your staff to provide us the following documents and
schedules on the following dates:
1. [​
D ate​
] .
2. [​
D ate​
] .
3. [​
D ate​
] .
Before the audit team leaves the client site at the end of the fieldwork phase, a meeting
will be held with you to discuss preliminary findings raised, any outstanding information,
and the next steps to the audit. The draft audit report will be completed by the audit staff
and reviewed in the next three weeks. You are then expected to provide a response to the
draft report within two weeks. The report will be finalized and presented to the audit
committee at their next meeting.
Our mission is to help you achieve [​
D epartment​
] ’s objectives by providing you
information about the effectiveness of internal control and by recommending courses of
actions that improve performance.
If you have any questions about this year's audit, please do not hesitate to call at [​
P hone
Number​
] or email us at [​
E mail Address​
] .
Sincerely,
[​
S ender’s Name​
]
[​
S ender’s Signature​
]
CC: Audit Committee, Director of Education, _______________________________, etc.
© ​
T EMPLATEROLLER.COM
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