StowbillAudit engagement letter template
An audit should not start without agreed terms in writing. This template sets out the terms ISA 210 asks an auditor to agree with the client: what the audit covers, what each side is responsible for, and the report you expect to issue.
What the letter covers
ISA 210 requires the agreed terms to include the objective and scope of the audit, the auditor's responsibilities, management's responsibilities, the financial reporting framework, and the expected form and content of the report. The template has a section for each, plus the practical terms firms usually add:
- Audit of the financial statements for the year ending [date]
- Objective of the audit
- Our responsibilities
- Responsibilities of management and those charged with governance
- Reporting
- Timetable and information we need
- Fees
- Confidentiality and file retention
- Agreement
How to use it
- Replace everything in square brackets: company, dates, framework, fees and retention period.
- Add terms your jurisdiction or firm policy requires, such as limitation of liability, data protection and anti-money-laundering checks.
- Send it before any audit work starts, and get it signed by someone who can bind the company.
- Review it each year. Reissue it when the terms, the framework, ownership or senior management change.
Preview
| Section | Opening words |
|---|---|
| Audit of the financial statements for the year ending [date] | You have asked us to audit the financial statements of [Company name] (the Company), which comprise the statem… |
| Objective of the audit | Our objective is to obtain reasonable assurance about whether the financial statements as a whole are free fro… |
| Our responsibilities | We will conduct the audit in accordance with ISAs. Those standards require that we comply with ethical require… |
| Responsibilities of management and those charged with governance | Our audit will be conducted on the basis that management and, where appropriate, those charged with governance… |
| Reporting | We expect to issue an auditor's report addressed to the members of the Company. The form and content of our re… |
| Timetable and information we need | We plan to begin fieldwork on [date] and to issue our report by [date], provided the trial balance, draft fina… |
| Fees | Our fee for the audit is [amount, currency], excluding out-of-pocket expenses and applicable taxes, payable [t… |
| Confidentiality and file retention | We will keep information about the Company confidential except where law, regulation or professional standards… |
Important
This is our own wording, written to cover what the standard requires. It is not the illustrative letter published by the IAASB, and it is not legal advice. Check your local standards, company law and your firm's own terms before you use it.
Send and sign it in Stowbill
In Stowbill the engagement letter is a step in the pre-engagement stage. You send it for e-signature, the client signs with a one-time code, and the signed copy and its certificate are filed on the engagement. A partner cannot move the engagement to planning until it is done.
Download the template
Questions
Is it free?
Yes. Use and adapt it for your own engagements.
What format is it?
A rich text file (.rtf), which opens and edits in Word, Google Docs and Pages.
Does it follow ISA 210?
It covers the terms ISA 210 requires. The wording is ours, not the IAASB's illustrative letter, so check it against your local version of the standard.
Do we need a new letter every year?
Not always. ISA 210 asks you to assess each year whether the terms need revising or the client needs reminding of them.
Last reviewed 12 November 2026. General information, not professional or legal advice.
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