Document background
Audit Engagement Letters are essential documents in the United States' professional services landscape, required before commencing any audit engagement. These letters serve as the foundation of the auditor-client relationship, establishing clear boundaries and expectations for both parties. The document must comply with various U.S. regulatory frameworks, including the Sarbanes-Oxley Act for public companies, AICPA standards, and state-specific requirements. Audit Engagement Letters typically include detailed information about the scope of services, responsibilities, timing, fees, and specific requirements for the engagement. They are particularly crucial in today's complex business environment where audit requirements vary significantly based on company size, industry, and regulatory oversight. The letter should be updated annually or when significant changes occur in the engagement scope or requirements.
