Audit Acceptance Letter Template for Pakistan

The Audit Acceptance Letter is a crucial document required under Pakistani corporate law and professional standards when a company appoints an external auditor. It is typically issued following the appointment of auditors at the Annual General Meeting or through a Board resolution. The letter serves multiple purposes: it formally documents the audit firm's acceptance of the engagement, establishes the scope and terms of the audit, outlines mutual responsibilities, and ensures compliance with the Companies Act 2017 and SECP regulations. The document must align with International Standards on Auditing (ISA 210) as adopted by ICAP and includes specific provisions for fee structure, timeline, and deliverables. This letter forms the basis of the professional relationship between the audit firm and the client company, providing legal protection and clarity for both parties.

1. Letterhead and Date: Audit firm's official letterhead with complete contact information and date of the letter

2. Client Address Block: Full name and address of the client company, including the name and title of the appropriate person (usually the Chair of the Board or Audit Committee)

3. Reference Line: Reference to the appointment as auditors (e.g., AGM date or Board resolution date)

4. Engagement Confirmation: Clear statement accepting the appointment as auditors and the financial year(s) covered

5. Scope of Audit: Description of the audit scope, including the financial statements to be audited and applicable financial reporting framework

6. Audit Objectives: Statement of the audit objectives and the nature of audit opinion to be expressed

7. Respective Responsibilities: Clear delineation of management's and auditor's responsibilities

8. Fee Structure: Details of audit fees, payment terms, and any additional costs

9. Timeline: Expected timeline for the audit and key deliverables

10. Professional Standards: Reference to applicable auditing standards and ethical requirements

11. Closing and Signatures: Professional closing, signature block, and request for countersignature