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Engagement Letter for Learning Audit
Audit & Assurance (AA201)
University of Dhaka
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Engagement Letter
Private & Confidential
The Board of Directors .... Limited Bangladesh
Contact: FCA
Date: 2019
Dear Sirs
Audit of Financial Statements of .........) Pvt. Limited and Reporting to the Group Auditor for the year ended 31 December 2018.
This letter confirms our understanding of the engagement to provide professional services to ...... Pvt. Limited (“the Company”) and the respective areas of responsibility of the Company and of ourselves.
The objective and scope of the audit
You have requested that we audit the financial statements of the Company, which comprise the statement of financial position as at 31 December 2018 and the statement of comprehensive income, statement of changes in equity and statement of cash flow for the year then ending , and a summary of significant accounting policies and other explanatory information. We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter. Our audit will be conducted with the objective of our expressing an opinion on the financial statements.
The responsibilities of auditor
We will conduct our audit in accordance with Bangladesh Standards on Auditing (BSA) and group audit instructions. Those standards and instructions require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance 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 auditors’ judgement, 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.
Because of the inherent limitation of an audit, together with the inherent limitation of internal control, there is an unavoidable risk that some material misstatement may not be detected, even though the audit is properly planned and performed in accordance with BSA.
In making our risk assessments, we consider internal control relevant to the entity’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. However, we will communicate to you in writing concerning any significant deficiencies in internal control relevant to the audit of the financial statements that we have identified during the audit.
The responsibilities of management
Our audit will be conducted on the basis that management and, where appropriate, 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 Bangladesh Financial Reporting Standards, the requirements of the Companies Act 1994 and other applicable laws and regulations;
b) For identifying and ensuring that the Company complies with laws and regulations applicable to its a ctivities;
c) For 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;
d) For maintaining proper accounting records and, selecting and applying proper accounting policies consistently; and
e) To provide 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.
As part of our audit process, we will request from management and, where appropriate, those charged with governance, written confirmation concerning representations made to us in connection with the audit.
Reporting
We are required to form our opinion on whether the financial statements prepared in accordance with Bangladesh Financial Reporting Standards, give a true and fair view of the state of the company’s affairs as of date of financial position and of the results of its operations and its cash flows for the year then ending and comply with the Companies Act 1994, and other applicable laws and regulations. We are also required to report whether:
to the terms of this letter shall be made in writing and will not be effective unless signed by the Principal of AKA and by a duly authorised representative of the Company.
Confirmation
This lette r will be effective for future periods unless it is terminated, amended or superseded. Please sign and return one copy to indicate that it is in accordance with your understanding of the arrangements.
Yours faithfully,
, FCA
....
We confirm the above terms of audit for and on behalf of XXXXX Pvt. Limited.
Authorised signatories:
Signature: Signature:
Name: Name:
Position: Position:
Engagement Letter for Learning Audit
Course: Audit & Assurance (AA201)
University: University of Dhaka
