Text in italics represents comments and explanations, which are removed from letters to clients.

Sections in square brackets must be adapted to the specific engagement.

[Audit engagement letters are addressed to the board of directors or representative of the management.]
Company: Attention: Address: Post code Town/city:

[Town/city, DDMMYYYY]

Audit Engagement Letter

The audit engagement We (I) have been engaged by the general meeting of [X AB] to conduct an audit of [X AB]. We (I) confirm through this letter that we (I) undertake the engagement. The engagement runs for [max. 4] financial years until the end of the annual general meeting of shareholders to be held in 20XX. The audit engagement comprises: Examination, in accordance with the Companies Act, of [X ABs] accountancy and annual report and the management by the board of directors [and the managing director] of the company, which is intended to provide us (me) with evidence supporting our (my) audit report to the general meeting, Other examination and reporting which it is incumbent upon the companys auditor to perform under the Companies Act (statutory supplementary engagements), Assistance and advice which is occasioned by observations made in the course of such examination and other comparable advice (audit advice).

Terms of engagement Our (my) audit is performed on the basis of the assumption that the management is aware of and understands its responsibility to prepare financial reports that give a fair presentation according to [the Annual Accounts Act or IFRS]. The General Terms for Audit of Swedish Enterprises and Organisations adopted by FAR, the Institute for the Accountancy Profession in Sweden, Appendix 1, are also

applicable to the audit engagement. If the engagement is renewed and unless otherwise agreed in writing, these terms apply to the new engagement.

[Fee] [Alternative 1] If a fee is to be charged in accordance with the bases of calculation in FAR's General Terms, nothing need be stated concerning the fee. [Alternative 2] Our fee for examination, in accordance with the Companies Act, of Y ABs accountancy and annual report and the management by the board of directors [and the managing director] of the company regarding the financial years concerned is calculated as being distributed as follows.. [alternatively: Our fee for examination, in accordance with the Companies Act, of Y AB's accountancy and annual report and the management by the board of directors [and the managing director] of the company, concerning the financial years concerned, totals ..... in accordance with the quotation which has been issued and accepted by you.]. This Alternative 2 is to be used as soon as any price information or price estimate has been supplied to the client (other than price per hour information). Such a calculated or estimated fee is always to be stated in the engagement letter unless it is obvious that an unmodified written acceptance to the quotation has been received. As soon as any change in relation to the quotation has taken place, the fee must be stated in the engagement letter. It may be appropriate to include the following limitation in the engagement letter in the case of a calculated fee. The Audit Firm wishes to draw to your attention that all calculations of the size of the fee made by the Audit Firm are only estimates which are based on the following assumptions. That the scope, orientation and organisation of the business are essentially stable and unchanged in comparison with the previous year. That the management of the company is carried out in a manner compatible with applicable association law and, where applicable, statutes or equivalent provisions. That systems of significance to accounting are appropriate, function well and are unchanged throughout the financial year. That the current accounts are of good standard and that there is satisfactory internal control throughout the financial year. That controls in essential accountancy systems have been documented. That annual and interim financial statements are prepared, reconciled, complete and well-documented and also analysed by the company before examination of these begins. That the company supplies financial statements, the annual report and other material for examination in good time before the audit or according to the schedule stated in the engagement letter or other agreement. That the company and its representatives are available to assist us [me] with necessary information. That no essential or extensive changes occur in the rules which are applicable to the activity of the company or execution of the audit engagement.

[Alternative 3] The work is performed on current account based on time spent on execution of the engagement.

[The hourly charge for our services during the current financial year is as follows: [SEK [SEK ] ]

Any other services in addition to audit The audit engagement does not cover advice other than audit advice as stated above. For such services, for example tax return assistance, tax advice and other freestanding advice, FARs General Terms for Advisory Services, Appendix 2, apply, unless a special engagement document/agreement has been prepared. Confirmation Please contact the undersigned if you have any questions concerning the contents of this engagement letter. We request that you sign this engagement letter, which has been drawn up in two copies, to show that you confirm and consent to this agreement. We (I) wish in particular to draw your attention to the description in the General Terms of the responsibilities of the management and the auditor in the audit engagement. Please return a copy of the engagement letter to [Name]. Yours sincerely [Audit Firm]

Auditor Title Appendix 1: Appendix 2: FARs General Terms for Audit of Swedish Enterprises and Organisations (version 2011:1) FARs General Terms for Advisory Services (version 2011:1)

[X AB]

Signature

Title

Name in block capitals

Date

[Comment: Normally authorised signatory or managing director but also other person authorised to act for the company]

[Comment: Engagement letters for audit engagements may also contain: arrangements regarding the planning of the audit arrangements to involve other auditors and experts arrangements to use the work of internal auditors reference to other correspondence or agreement concerning detailed agreements relating to planning, fee, reports and arrangements in general.]