Illustrative Audit Engagement Letter Template printable pdf download

ILLUSTRATIVE AUDIT ENGAGEMENT LETTER

(Date)

Name of Auditee

Address

Dear ________________

We are pleased to confirm our understanding of the services we are to provide you with under this

engagement.

USAID’s applicable scope of work that was part of your RFP will be included or

Audit Scope.

referenced to.

Audit Objectives. The objective of our audit is the expression of opinions as to whether your basic

financial statements are fairly presented, in all material respects, in conformity with U.S. generally

accepted accounting principles, the objective also includes reporting on:

Internal control related to the financial statements and compliance with laws, regulations, and

the provisions of contracts and grant agreements, noncompliance with which could have a

material effect on the financial statements, in accordance with Government Auditing Standards.

Internal control related to major programs and an opinion (or disclaimer of opinion) on

compliance with laws, regulations, and the provisions of contracts and grant agreements that

could have a direct and material effect on each major program in accordance with the Single

Audit Act Amendments of 1996 and OMB Circular A-133, Audits of States, Local Governments,

and Non-Profit Organizations.

Our audit will be conducted in accordance with generally accepted auditing standards established by the

Auditing Standards Board (United States); the standards for financial audits contained in Government

Auditing Standards, issued by the Comptroller General of the United State; the Single Audit Act

Amendments of 1996, the provisions of OMB Circular A-133, and will include tests of accounting

records, a determination of major program(s) in accordance with OMB Circular A-133, and other

procedures we consider necessary to enable us to express such opinions and to render the required

reports.

If our opinions on the financial statements or the Single Audit compliance opinions are other than

unqualified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to

complete the audit or are unable to form or have not formed opinions, we may decline to express

opinions or to issue a report as a result of this engagement. Should such situation arise, we will notify

you.

We will use professional judgment in determining the standards that apply to the work to be conducted.

If this engagement will not satisfy the requirements of all audit report users, laws, and regulations, we

will notify you as soon as this comes to our attention. We will then submit another engagement letter for

your approval that complies with the applicable requirements and will seek approval of the Legislative

Auditor for the engagement. We will consider all standards that may apply, but in particular, we will

determine whether a different type of engagement is needed based on:

Audit requirements of Government Auditing Standards.

Office of Management and Budget Circulars

Other contractual requirements.

Illustrative Audit Engagement Letter Template