Written Agreement between an Auditor

When a client hires an auditor for their business, it is important to have a written agreement in place to establish the expectations and responsibilities of both parties. A written agreement can help to ensure that the audit is conducted efficiently, effectively, and with transparency.

Here are some key elements to include in a written agreement between an auditor and their client:

1. Scope of the audit: Define the scope of the audit, including what areas of the business will be audited, the time period to be covered, and any specific objectives or concerns that the client wants the auditor to focus on.

2. Deliverables: Specify the expected deliverables of the audit, including the type of audit report (e.g. opinion, statement), the format of the report, and any other documentation or materials that the auditor will provide to the client.

3. Timelines: Establish a timeline for the audit, including the start and end dates, as well as any key dates for deliverables and milestones.

4. Fees: Specify the fees and payment terms for the audit, including any fees for additional work or expenses that may arise during the audit.

5. Confidentiality: Include a confidentiality clause to protect the client’s sensitive information, specifying the types of information that will be kept confidential, and the measures that the auditor will take to protect this information.

6. Communication protocols: Establish protocols for communication between the auditor and the client, including the frequency and method of communication, the individuals who will be involved in the communication, and any restrictions on communication.

7. Responsibilities: Clearly specify the responsibilities of each party, including the obligations of the auditor to perform the audit in accordance with applicable standards and regulations, and the responsibilities of the client to provide access to relevant information and personnel.

By including these elements in a written agreement, both the client and the auditor can establish clear expectations for the audit process, work effectively together, and ensure that the audit is conducted in a professional and ethical manner. A well-written agreement can help to reduce misunderstandings, disputes, and delays, and can help to ensure that the audit achieves its intended objectives.