Document background
Audit Engagement Letters are fundamental documents required at the outset of any audit engagement in Canada. These letters must comply with Canadian Auditing Standards (CAS 210) and provincial regulatory requirements, while addressing specific client circumstances and industry considerations. The document serves multiple purposes: it confirms the audit's acceptance, establishes the scope and terms of the engagement, outlines mutual responsibilities, and helps prevent misunderstandings about the nature and limitations of the audit services. Audit firms must ensure these letters align with their professional obligations, independence requirements, and quality control procedures while meeting the specific needs of Canadian businesses operating across various sectors.
