Audit Engagement Letter Format (SA 210)
See the terms an auditor and an entity agree in writing before a statutory or other audit begins, as Standard on Auditing 210 requires.
What it is
Standard on Auditing (SA) 210, "Agreeing the Terms of Audit Engagements", issued by the Institute of Chartered Accountants of India, requires the auditor to agree the terms of the audit with management or those charged with governance before starting, and to record them in an engagement letter or other written agreement. The letter states the objective and scope of the audit, the responsibilities of the auditor and of management, the applicable financial reporting framework and the expected form of the report.
When it is used
- Before the first audit of a company, LLP, trust or other entity.
- When terms change, such as a change in scope or reporting framework.
- Recurring audits, where the auditor decides whether the terms need to be revised.
What the template covers
- Auditor and entity details
- Type of audit and financial year
- Objective and scope of the audit
- Responsibilities of management, including for internal control and records
- Responsibilities of the auditor and inherent limitations
- Form of the report, access to records and expected reporting date
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Letter
Letter Date
Audit Firm
Audit Firm Name; Firm Registration No.; Firm Address; Engagement Partner Name; Partner Membership No.
Client
Client (Company) Name; CIN (if company); Client Registered Office
Audit Scope
Type of Audit; Financial Year; Audit Fee (₹, plus GST and out-of-pocket); Expected Reporting Date
Stamp duty, registration and filing
The engagement letter is part of the auditor's documentation and does not change the statutory duties of the auditor under the Companies Act, 2013 or other law. For a company, the auditor is appointed by the members (or by the board for the first auditor) before the letter is issued. Engagement terms are governed by the ICAI Code of Ethics and the Standards on Auditing; check the current standards on icai.org.
Generate the Audit Engagement Letter (SA 210)
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
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Frequently asked questions
Is an engagement letter mandatory for an audit?
SA 210 requires the terms to be agreed in writing, usually by an engagement letter, before the audit begins.
Who signs the engagement letter?
The auditor, and management or those charged with governance acknowledge and agree to the terms.
Does the letter need to be renewed every year?
Not always. For recurring audits the auditor assesses whether the terms need to be revised or the entity reminded of them.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.