Example of an Audit Engagement Letter (Thai /English)
To the Board of Directors of ABC Company
Because of the inherent limitations of an audit, together with the inherent limitations of internal control, there is an unavoidable risk that some material misstatements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (NZ).
In making our risk assessments, we consider internal control relevant to the entity’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s control. However, we will communicate to you in writing concerning any significant deficiencies in internal control relevant to the audit of the financial statements that we have identified during the audit.
Our audit will be conducted on the basis that the directors acknowledge and understand that they have responsibility:
(a) For the preparation of the financial statements in accordance with generally accepted accounting practice New Zealand and that give a true and fair view of the matters to which they relate;
(b) For such internal control as the determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error: and
(c) To provide us with:
(i) Access to all information of which management and the directors are aware that is relevant to the preparation of the financial statements such as records, documentation and other matter;
(ii) Additional information that we may request from management or directors for the purpose of the audit; and
(iii) Unrestricted access to persons within the entity from whom we determine it necessary to obtain audit evidence.
As part of our audit process, we will request from the directors, written confirmation concerning representations made to us in connection with the audit.
We look forward to full coorperation from your staff during our audit.
(insert other information, such as fee arrangements, billing and other specific terms, as appropriate.)
The form and content of our report may need to be amended in the light of our audit findings.
Please sign and return the attached copy of this letter to indicate your acknowledgement of, and agreement with, the arrangements for our audit of the financial statements including our respective responsibilities.
XYZ & Co.
Acknowledge and agreed on behalf of ABC Company by
Name and title