An auditor's engagement letter documents the agreed terms and scope of the audit, while the company's statutory appointment is completed through the applicable corporate process under the Companies Act. CorporateWalla assists with preparing and reviewing auditor engagement letters, terms of appointment, audit scope, management responsibilities, access-to-information provisions, remuneration terms and related documentation.
An engagement letter should not be used as a substitute for the statutory auditor appointment.
An auditor engagement letter records the terms under which the auditor will perform the audit.
Depending on the engagement, it can address:
The final letter should be aligned with applicable law, professional standards and the actual engagement.
These are separate concepts.
The company appoints the auditor through the applicable Companies Act process.
The auditor and company document the terms under which the audit engagement will be conducted.
An engagement letter cannot independently appoint an auditor where the Companies Act requires Board / member / CAG or another statutory process.
The engagement documentation should distinguish:
The remuneration should be approved through the applicable corporate process and documented appropriately. The engagement letter itself does not determine or legally fix remuneration in every company.
Identify:
State:
The letter should reflect the actual appointment rather than create a fictional appointment.
Explain that the engagement is to perform the agreed audit in accordance with applicable auditing standards and law.
Describe:
Avoid calling a limited review or agreed-upon procedure a statutory audit.
Depending on the engagement, address:
The letter should not promise a particular audit opinion.
Management generally remains responsible for:
The engagement letter should clearly allocate these responsibilities.
Specify that management will provide timely access to:
The exact list should reflect the engagement.
A statutory audit should be conducted in accordance with the auditing standards applicable to the engagement and relevant law.
The engagement letter should not list standards that do not apply to the entity or period.
Where professional standards change, the template should be updated.
The letter should identify the relevant financial reporting framework, where appropriate, such as:
The correct framework depends on the company and applicable rules.
Management remains responsible for establishing and maintaining appropriate internal controls.
The auditor evaluates controls as relevant to the audit and applicable auditing standards.
The engagement letter should not suggest that the auditor assumes management's control responsibilities.
The engagement terms should explain the respective responsibilities for:
An audit provides reasonable assurance, not a guarantee that every fraud or error will be detected.
Where applicable, the audit considers management's assessment of going concern and related evidence under the relevant auditing standards.
The engagement letter should not promise a particular going-concern conclusion.
Where relevant to the audit, the company should provide access to:
The audit scope should be clearly distinguished from a separate corporate-secretarial compliance engagement.
Where an Audit Committee applies, the engagement can specify communication arrangements for:
The exact reporting requirements depend on the company and applicable standards.
The engagement should not override statutory and professional independence requirements.
The auditor should assess:
Section 144 restricts specified services by statutory auditors to companies and specified related entities.
An engagement letter should not bundle prohibited services into a statutory audit engagement.
Where additional services are proposed, assess them separately before acceptance.
The engagement can include appropriate provisions relating to:
These provisions should be consistent with applicable law and professional obligations.
If the engagement uses:
The engagement should describe the process only to the extent actually used.
The company may be required to provide:
The engagement letter can establish expectations for timely cooperation.
The engagement should identify the expected statutory reporting deliverables where applicable.
The engagement letter cannot guarantee:
The audit conclusion depends on the evidence and applicable standards.
If the company requests additional work, document:
Do not silently expand a statutory audit engagement into advisory, bookkeeping or other services.
Potential additional services may include separate engagements such as:
Each should be checked for independence and statutory restrictions before acceptance.
For reappointment:
Do not simply reuse the previous year's letter where circumstances have changed.
A replacement auditor should execute a fresh engagement arrangement appropriate to the new appointment.
The company should provide:
CorporateWalla's documentation assistance fee, if any, is separate from the auditor's audit remuneration.
The engagement letter can document the agreed professional fee and billing terms, subject to the applicable corporate approval and professional requirements.
It documents the engagement; it does not replace the statutory appointment process.
An audit opinion depends on evidence and applicable standards.
Management and auditor responsibilities should be clearly separated.
The auditor does not assume management's responsibility for internal controls.
Section 144 restrictions must be checked before accepting additional services.
Standards, law, company circumstances and scope can change.
The letter should identify the financial statements and period covered.
Auditor remuneration should follow the applicable corporate process.
Bookkeeping, implementation and system work can be separate engagements.
Auditor engagement-letter drafting/review is scope-based. Pricing can depend on:
Timeline depends on:
Pick the speed and depth that matches your need. Same quality, same CA team — only the timeline changes.
Timeline: Quoted on the existing letter and scope of review
Timeline: Quoted on new vs continuing engagement and company type
Timeline: Quoted on listed / government status and group arrangements
Every price above is a professional fee, excluding GST and government charges. 50% on delivery.
Engagement-letter drafting and review is quoted on scope, because the work depends on whether the engagement is new or continuing, the company type, listed or government status, audit complexity, reporting frameworks, additional clauses, group-company arrangements, regulatory requirements and the review or redrafting required. CorporateWalla's documentation fee is separate from the auditor's audit remuneration and excludes GST.
Complete the eligibility review for the newly appointed auditor.
Obtain the auditor's consent.
Complete the corporate appointment through the applicable Companies Act process.
Document the engagement terms in the engagement letter.
Confirm remuneration/terms through the appropriate authority.
Commence audit work after the appointment and engagement requirements are in place.
Tell us your requirement, a CA will call you in 30 minutes.
Engagement letters and terms of appointment are prepared or reviewed so they reflect the actual appointment rather than replace it.
The financial statements, reporting period, accounting framework and any additional agreed procedures are clearly identified.
Auditor and management responsibilities are clearly separated, and access to books, records and personnel is specified.
The agreed professional fee and billing terms are documented, subject to the applicable corporate approval and professional requirements.
Custom quote • Scope-based
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Custom quote • Scope-based
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Custom quote • Scope-based
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Custom quote • Scope-based
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Custom quote • Scope-based
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Custom quote • Scope-based
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From ₹14,999 • Scope-based
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From ₹9,999 • 15–30 days (indicative)
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