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Audit Engagement Letter Template for Switzerland

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Key Requirements PROMPT example:

Audit Engagement Letter

"I need an Audit Engagement Letter for a Swiss pharmaceutical company listed on the SIX Swiss Exchange, requiring an ordinary audit for the financial year ending December 31, 2025, with specific consideration for multi-location operations across Europe and compliance with GxP regulations."

Document background
The Audit Engagement Letter is a crucial document required before commencing any audit engagement in Switzerland. It serves as the formal contract between the audit firm and the client company, establishing the foundation for the audit relationship. This document is mandatory under Swiss audit regulations and must comply with the Swiss Code of Obligations, Federal Act on the Licensing and Oversight of Auditors, and Swiss Auditing Standards. The letter typically outlines the scope of the audit, responsibilities of both parties, reporting requirements, fee arrangements, and specific Swiss regulatory considerations. It becomes particularly important in the context of ordinary audits for larger companies and listed entities, where stricter regulatory requirements apply. The Audit Engagement Letter also includes references to the Swiss Federal Audit Oversight Authority requirements and specific independence rules applicable in the Swiss jurisdiction.
Suggested Sections

1. Addressee and Date: Formal letter heading addressing the appropriate governing body (e.g., Board of Directors) of the client company

2. Purpose and Scope: Clear statement of the audit engagement purpose and the financial statements/period to be audited

3. Audit Objectives: Description of the audit's objectives and the level of assurance to be provided

4. Management's Responsibilities: Detailed outline of management's responsibilities regarding financial statements, internal controls, and providing information

5. Auditor's Responsibilities: Description of the auditor's responsibilities, including methodology, professional standards, and limitations

6. Independence Declaration: Statement confirming the auditor's independence in accordance with Swiss regulations

7. Reporting Requirements: Description of the reports to be issued and their intended use

8. Timeline and Key Dates: Expected schedule for the audit process and delivery of reports

9. Fees and Billing: Fee structure, billing arrangements, and payment terms

10. Professional Standards and Regulations: Reference to applicable Swiss audit standards and regulations governing the engagement

11. Signature and Acceptance: Formal closure with signature blocks for both parties

Optional Sections

1. Group Audit Considerations: Include when the client is part of a group structure requiring coordination with other auditors

2. Specialist Involvement: Include when specific technical expertise or specialist involvement is required

3. Multi-location Audit Approach: Include for clients with multiple locations requiring specific audit considerations

4. IT Systems and Data Access: Include when specific IT systems access or data requirements need to be detailed

5. Covid-19/Special Circumstances: Include when specific circumstances require special audit considerations or modifications

6. Language Considerations: Include when audit documentation or reporting will be in multiple languages

7. Regulatory Reporting Requirements: Include for regulated entities requiring specific regulatory reporting

Suggested Schedules

1. Appendix A - Scope of Work: Detailed description of the audit scope, including specific accounts, locations, and procedures

2. Appendix B - Fee Schedule: Detailed breakdown of fees, including hourly rates and estimated hours by staff level

3. Appendix C - Timeline: Detailed project timeline including key milestones and deliverables

4. Appendix D - Required Information: List of documents and information required from the client

5. Appendix E - Team Structure: Key team members and their roles in the engagement

6. Appendix F - General Terms and Conditions: Standard terms and conditions of the audit firm

7. Appendix G - Independence Confirmations: Detailed independence declarations and any safeguards in place

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































Clauses



































Relevant Industries

Financial Services

Manufacturing

Retail

Technology

Healthcare

Real Estate

Construction

Energy

Telecommunications

Professional Services

Consumer Goods

Transportation and Logistics

Life Sciences

Insurance

Banking

Relevant Teams

Finance

Accounting

Internal Audit

Compliance

Legal

Risk Management

Corporate Governance

Treasury

Financial Reporting

Executive Management

Board of Directors

Relevant Roles

Chief Financial Officer

Financial Controller

Chief Executive Officer

Board Member

Audit Committee Chair

Finance Director

Company Secretary

Head of Accounting

Compliance Officer

Risk Manager

Financial Reporting Manager

Group Financial Controller

Corporate Controller

Treasury Manager

Internal Audit Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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