An agreement between an auditor and client is a document that stipulates all of the terms of the relationship. This includes professional responsibilities, cooperation, the terms of the audit, and fees. The agreement also includes confidentiality and data protection provisions. Service companies that offer audit, tax return, financial, consulting, and legal services often require such an agreement.
An audit engagement letter is a key tool that protects both the auditor and the client. It helps prevent scope creep and keeps the audit within predetermined boundaries. It usually specifies the precise services to be provided, the performance standards, the amount and schedule of client payments, any performance guarantees, and the conditions under which either party may terminate the agreement. It should be signed by a person with the appropriate authority in the client’s organization and given to the auditor as soon as possible after verbal confirmation of the appointment.
An agreement between an auditor and client does not necessarily have to be a financially profitable arrangement for both parties. However, it can significantly reduce the number of misunderstandings and disputes that may arise later on. In addition, it can provide the foundation for future projects and help a business harness the many benefits of an audit. If you’d like to learn more about agreement between an auditor and a client, then continue reading this article. This post will explain how and why an audit engagement letter is so important, and the information it should contain. agreement between auditor and client