Audit Engagement Letter
Statutory Audit under the Companies Act, 2013 · FY ending
FRN:
Date: [Date]
To,
CIN:
Dear Sir / Madam,
Sub.: Engagement to conduct the Statutory Audit under the Companies Act, 2013 of for the financial year ending .
We refer to the appointment of our firm as the auditors of (the "Company") for the financial year ending and write to confirm the terms of our engagement, in accordance with Standard on Auditing (SA) 210 — Agreeing the Terms of Audit Engagements.
1. Objective and Scope of the Audit
Our audit will be conducted with the objective of expressing an opinion on the financial statements of the Company for the financial year ending . The audit will be conducted in accordance with the Standards on Auditing (SAs), as issued by the Institute of Chartered Accountants of India (ICAI). 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. We will also report on matters specified in the Companies (Auditor's Report) Order, 2020 (CARO 2020).
2. Responsibilities of the Auditor
Our responsibility is to express an opinion on the financial statements based on our audit, and to communicate the matters required to be communicated by the relevant Standards on Auditing. As part of an audit in accordance with the SAs, we will exercise professional judgment and maintain professional scepticism throughout the audit.
3. Responsibilities of Management and Those Charged with Governance
Our audit will be conducted on the basis that management and those charged with governance acknowledge and understand that they have responsibility: (a) for the preparation of financial statements that give a true and fair view in accordance with the Companies Act, 2013, applicable Accounting Standards (Ind AS where applicable), and other recognised accounting policies and practices; (b) for such internal control as management determines is necessary to enable the preparation of financial statements free from material misstatement; (c) to provide us with access to all information of which management is aware that is relevant to the preparation of financial statements; (d) to provide additional information that we may request for the purpose of the audit; and (e) for unrestricted access to persons within the entity from whom we determine it necessary to obtain audit evidence.
4. Reporting
Upon completion of our audit, we will issue our independent auditor's report containing our opinion on the financial statements, together with our report on the matters specified in CARO 2020. The form and content of our report may need to be amended in light of our audit findings. We will also communicate matters of audit interest to those charged with governance.
5. Fees and Out-of-Pocket Expenses
Our professional fees for the audit will be ₹ 0 (Rupees 0 only), exclusive of applicable Goods and Services Tax (GST). Out-of-pocket expenses (including travel, lodging, and printing) will be billed at actuals. Payment terms: 50% on commencement; 50% on signing of audit report. Plus applicable GST and travel out-of-pockets at actuals.
6. Timing
Audit completion timing will be agreed mutually with management based on accounts readiness.
7. Confidentiality, Independence and Conflicts
We confirm that we maintain independence in accordance with the ICAI Code of Ethics, and that there are no known conflicts of interest in our acceptance of this engagement. All information shared with us in the course of this audit shall be held in confidence except where disclosure is required by law or with management's consent.
8. Limitation of Liability
Our liability arising out of or in connection with this engagement shall, in aggregate, not exceed three (3) times the audit fees agreed under this engagement, except in the case of fraud or wilful misconduct on our part. We shall not be liable for any consequential, indirect, or punitive damages.
9. Governing Law
This engagement letter shall be governed by the laws of India and shall be subject to the exclusive jurisdiction of the courts at Karnataka.
We look forward to a long and constructive professional association with the Company.
Yours sincerely,
For
_________________________
Partner
Membership No.:
ACKNOWLEDGED AND ACCEPTED on behalf of :
_________________________
Date: __________