This audit engagement letter outlines the agreement between the audit firm and Sheridan Audio Visual Ltd for the audit of the company's financial statements. The audit firm will conduct the audit in accordance with International Standards on Auditing to obtain reasonable assurance that the financial statements are free of material misstatement. Management is responsible for preparing the financial statements in accordance with International Financial Reporting Standards and for providing the auditors with access to all relevant records and information. The fees for the audit will be based on the time spent by assigned staff and expenses incurred.
Micromeritics - Fundamental and Derived Properties of Powders
Audit Engagement Letter for Sheridan Audio Visual
1. AUDIT ENGAGEMENT LETTER
To: Mr. Sheridan
Managing Director
Sheridan Audio Visual Ltd
Dear Mr. Sheridan
You2 have requested that we audit the financial statements of Sheridan Audio Visual Ltd, which
comprise the balance sheet and the income statement, statement of changes in equity and cash
flow statement for the year then ended,. We are pleased to confirm our acceptance and our
understanding of this audit engagement by means of this letter. Our audit will be conducted with
the objective of our expressing an opinion on the financial statements.
We will conduct our audit in accordance with International Standards on Auditing (ISAs). These
standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. These procedures include assessing the accounting
principles used and significant estimates made by management, assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
Based on the inherent limitations of an audit, together with the inherent limitations of internal
control, there is an unavoidable risk that even some material misstatements may remain
undiscovered, even though the audit is properly planned and performed in accordance with ISAs.
In making our risk assessments, we consider internal control relevant to the entity’s preparation
of the financial statements in order to identifying and assessing the risks of material misstatement
through understanding the entity and its environment, gives extensive guidance to auditors about
audit risk assessment
2. Our audit will be conducted on the basis that management acknowledge and understand that they
have responsibility:
1. For the preparation and fair presentation of the financial statements in accordance
with the International Financial Reporting Standards
2. For such internal control as management determines is necessary to enable the
preparation of the financial statements that are free from material misstatement,
whether due to fraud or error; and
3. To provide us with:
(i) Access to all information of which [management] is aware that is relevant to the
preparation of the financial statements such as records, documentation and other matters;
(ii) Additional information that we may request from [management] 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 management, written confirmation concerning
representations made to us in connection with the audit.
We look forward to full cooperation from your staff during our audit. We trust that they will
make available to us whatever records, documentation and other information are requested in
connection with our audit. Our fees, which will be billed as work progress, are based on the time
required by the individuals assigned to the engagement plus out-of-pocket expenses. Individual
hourly rates vary according to the degree of responsibility involved and the experience and skill
required.
Please sign and return the attached copy of this letter to indicate that it is in accordance with your
understanding of thye arrangements for our audit of the financial statement
Alex Gold
Acknowledged and agreed on behalf of Sheridan Audio Visual Ltd by
(signed)
__________________________