Audit Engagement Letter Example For Non Profit Organization
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FAQ
The engagement letter should cover: the engagement's purpose; precisely what the firm will and won't do (the project scope); duties of the client; known unfavorable situations; rates and estimations of billing; client's signature;
What to include in an audit engagement letter The auditor's responsibilities include: ... The management's responsibilities include: ... The relevant financial reporting framework. ... The objective and scope of the audit engagement. ... Estimated fee and billing schedule. ... Type and scope of the audit report to be issued.
An audit engagement letter is a written agreement that outlines the scope of your work as an auditor, what the client is responsible for, how long the audit is estimated to take, and details about your fee, among other things. It is a binding contractual agreement between you and each of your clients.
The engagement letter documents and 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.
Auditors will review any laws and regulations applicable to the nonprofit sector, including tax-exempt status compliance and fundraising restrictions. They may also look into grant compliance or other specific requirements related to your organization.