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AUDIT ENGAGEMENT LETTER

Date Mr. XYZ Board of Directors ABC Company Associated House, Floor No. Z XYZ Road Lahore. XYZ Company Letter of Audit Engagement Dear Sir, Following our appointment as auditors of your company, we set out below our responsibilities as auditors and our understanding of engagement through this letter. Our foundation as auditors under the Companies Ordinance 1984 is to examine the financial statements presented to us by the directors with the objective of expressing on opinion on such financial statements. We shall, as required by law, report to the members whether in our opinion the financial statements of the Company which we have audited give a true and fair view of the state of the Companys affairs at the date of the balance sheet, and of the profit or loss and cash flow statement of the year then ended, and whether those financial statements comply with the Companies ordinance, 1984. In arriving at our opinion we are required to consider the following matters but only to report on any in respect of which we are not satisfied: Whether proper books of account have been kept by the Company and proper returns adequate for our audit have been received form branches not visited by us; Whether the Companys balance sheet and profit and loss account are in agreement with the books of account and returns; Whether we have obtained all the information and explanations which we think necessary for the purpose of our audit. Specimen -

We will plan and perform audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.

AUDIT ENGAGEMENT LETTER


An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Because of the nature and other inherent limitations of an audit, together with the limitations of any accounting and internal control system there is an unavoidable risk that even some material misstatements may remain undiscovered. We would like to retired that the primary responsibility for the preparation of financial statements including adequate disclosure is that of the management of the company. This includes the maintenance of adequate accounting records, and internal controls, the selection and application of accounting policies, and the safeguarding of the assets of the company. As part of our audit process, we will request from management the written confirmation concerning representations made to us in connection with the audit. In addition to our report on the financial statements, we shall report to the directors regarding any material weakness in accounting and internal control systems which come to our notice and which we think should be brought to their attention. We look forward to having full cooperation from your staff and trust that they will make available to us whatever records, documentation and other information including the work of internal audit inspection departments, if applicable, as requested in connection with out audit. This letter will be effective for future years unless it is terminated, amended or superseded. Our audit working paper is connection with the audit of accounts of your company will be available for Quality Control Review Programme of The Institute of Chartered Accountants of Pakistan. We shall be grateful if you kindly sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the arrangements for our audit of the financial statements. Yours faithfully Signature ____________ Name _______________ Designation __________