Audit Contract

Company Letterhead

{{company_name}}

{{company_address}}

{{phone}} | {{email}} | {{website}}

AUDIT ENGAGEMENT LETTER

Date: {{date}}

Client Name: {{client_name}}

Client Address: {{client_address}}

1. Introduction

This letter confirms our understanding of the terms and objectives of our engagement and the nature and limitations of the services we will provide. We will audit the financial statements of {{client_name}} (the 'Company'), which comprise the statement of financial position as at {{financial_year_end}}, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

2. Scope of the Audit

Our audit will be conducted in accordance with International Standards on Auditing (ISAs). Those 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. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

3. Management's Responsibilities

Our audit will be conducted on the basis that management acknowledges and understands that it has responsibility for: (a) the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards (IFRS) or other applicable financial reporting framework; (b) such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; and (c) providing 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.

4. Auditor's Responsibilities

Our responsibility is to express an opinion on these financial statements based on our audit. We will communicate to you significant matters arising from the audit. An audit does not relieve management or those charged with governance of their responsibilities.

5. Fees and Payment Terms

Our fees will be charged on the basis of the time spent by our personnel on the engagement, at our standard hourly rates, plus out-of-pocket expenses. Our estimated fee for this engagement is {{estimated_fee}}. We will bill {{billing_frequency}} and payment is due within {{payment_terms}} days of the invoice date. We reserve the right to suspend our services if invoices are not paid in accordance with these terms.

6. Limitation of Liability

Our liability for losses arising from this engagement is limited to {{liability_limit}}.

7. Confidentiality

We agree to maintain the confidentiality of your information, except as required by law or professional standards.

8. Agreement

Please confirm your agreement to the terms of this engagement letter by signing and returning the enclosed copy. This letter constitutes the entire agreement between us relating to our audit of the financial statements.

Yours faithfully,

{{audit_firm_name}}

_____________________________

{{auditor_name}}

{{auditor_title}}

9. Acknowledgment and Acceptance

Acknowledged and accepted on behalf of {{client_name}}:

_____________________________

Signature: {{client_signature}}

Name: {{client_signatory_name}}

Title: {{client_signatory_title}}

Date: {{acceptance_date}}