NOTIFICATON LETTER

Hai

An audit engagement letter defines the legal relationship between the audit firm and its client, whereby there ia an agreement set between both the parties that the client is engaging the audit firm to perform audit and/or assurance services for the client. This letter states the terms and conditions of the engagement, the objectives and scope of the work to be performed and the fees and the basis of fee calculated for which the work will be undertaken. This agreement is prepared way before the audit work is performed.

An audit notification letter is where the audit firm or the responsible audit senior sends a letter to the client informing that at so and so date the staffs would be arriving to perform the services that they had agreed upon at an earlier stage referring to the engagement letter. This letter would also form as a reminder notice to the client that there should be no barriers or limitations to be put up on the audit team while performing the aforesaid assignment. This letter is given just before the audit team is about to perform the designated assignment.

Hope you have understood the concept. If you still have difficulties or haven’t understood them, then I have a proforma of both the letters that you could look at to have an idea of it, which I could pass on if you provide me with your e-mail id.