Document background
The Audit Acceptance Letter is a crucial document in Canadian audit practice that formalizes the professional relationship between an audit firm and its client. This document is required by Canadian Auditing Standards and professional regulations before commencing any audit engagement. It serves multiple purposes: establishing the scope and terms of the audit, defining roles and responsibilities, setting fee structures, and ensuring compliance with regulatory requirements. The letter needs to be issued and signed before the audit work begins and typically covers one fiscal year or a specific period as agreed. It's particularly important in the Canadian context as it must align with provincial CPA requirements, federal regulations, and specific industry requirements where applicable. The Audit Acceptance Letter also serves as a key reference document throughout the audit engagement and helps prevent misunderstandings about the nature and limitations of the audit services.
