Document background
The Audit Acceptance Letter is a crucial document required under UAE Federal Law No. 12 of 2014 and international auditing standards when an audit firm accepts an engagement to perform statutory audit services. This formal communication serves multiple purposes: it confirms the auditor's acceptance of the appointment, establishes the terms of engagement, outlines the respective responsibilities of the auditor and the client, and sets clear expectations regarding the scope of work, deliverables, and timeline. The letter must comply with UAE regulatory requirements, including specific provisions related to auditor independence, professional liability, and reporting obligations. Used at the commencement of a new audit engagement or upon renewal of an existing engagement, the Audit Acceptance Letter forms the contractual basis for the audit relationship and helps prevent misunderstandings about the nature and limitations of the audit services.
