Comments are highly appreciated:)

3. A document that confirms the auditor’s acceptance of
the appointment, the objective and scope of the audit,
the extent of the auditor’s responsibilities to the client
and the form of any reports.

4. Engagement letters are highly recommended
to reduce the risk of misunderstandings.

5. •A new engagement letter should
be obtained every year of a
continuing audit
•When a new client is accepted or
when an audit engagement
continues from year to year, an
engagement letter should be
prepared.

6. •Acts as a contract between
auditor and client.
•Serves as a means of reducing the
risk of misunderstandings with the
client and as a means of avoiding
legal liability for claims that the
auditors did not perform the work
promised

7. It includes:
 Document the contractual duties agreed by the
auditor and the client
 Explain the auditor’s and client’s responsibilities
 Protect the auditor from legal liabilities
 Provide the audit staff with an understanding of the
nature of the engagement
Engagement
Letter

8. Guiding standard:
Philippine Standard on Auditing 210
(Redrafted) AGREEING THE TERMS OF AUDIT
ENGAGEMENTS

9. The following slides show an example of an engagement letter taken
from the website of
file:///C:/Users/ts13/Downloads/sampleauditengagementletterfinal2ja
n2011-120304210937-phpapp02.pdf