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Assurance Engagement Letter

Assurance Engagement Letter Template for South Africa

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Key Requirements PROMPT example:

Assurance Engagement Letter

"Need to draft an Assurance Engagement Letter for a sustainability report assurance for a large mining company, with specific focus on environmental compliance and integrated reporting, to be completed by March 2025."

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Document background
The Assurance Engagement Letter is a crucial document used in South Africa when professional firms undertake assurance engagements with clients. It serves as the formal contract between the assurance provider and the client, outlining the scope, terms, and conditions of the engagement. The letter must comply with the Auditing Profession Act No. 26 of 2005, IRBA requirements, and relevant international standards such as ISAE 3000. It is essential for establishing clear expectations, responsibilities, and deliverables while incorporating necessary legal protections and regulatory compliance elements specific to the South African context.
Suggested Sections

1. Addressee Details: Formal address to the appropriate governance body or management of the client

2. Engagement Subject: Clear identification of the subject matter of the assurance engagement

3. Scope of Work: Detailed description of the nature, timing, and extent of procedures to be performed

4. Professional Standards: Reference to ISAE 3000 and other applicable professional standards

5. Independence Declaration: Statement confirming independence and compliance with ethical requirements

6. Client Responsibilities: Detailed outline of management's and those charged with governance's responsibilities

7. Practitioner's Responsibilities: Clear statement of the practitioner's responsibilities and limitations

8. Deliverables: Description of the expected output, including the form and content of the assurance report

9. Timing: Expected timeframes and key milestone dates

10. Fees and Payment Terms: Fee structure, payment terms, and billing arrangements

11. Acknowledgment and Acceptance: Space for client signature and acceptance of terms

Optional Sections

1. Use of Experts: Include when external experts or specialists will be involved in the engagement

2. Data Protection Compliance: Include detailed POPIA compliance sections when significant personal information processing is involved

3. Group Engagement Considerations: Include when the engagement involves group structures or multiple components

4. Access to Working Papers: Include when there might be third-party access requests to working papers

5. Electronic Communications: Include when significant electronic communication and data transfer is expected

6. Conflict Resolution: Include detailed dispute resolution procedures for high-risk engagements

Suggested Schedules

1. Schedule A - Scope Details: Detailed description of the specific assurance procedures to be performed

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

3. Schedule C - Timing Schedule: Detailed timeline of the engagement including key dates and deliverables

4. Appendix 1 - Team Structure: Key team members and their roles in the engagement

5. Appendix 2 - Required Information: List of information and documents required from the client

6. Appendix 3 - Terms and Conditions: Standard terms and conditions including liability limitations and indemnities

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions




































Clauses






























Relevant Industries

Financial Services

Mining

Manufacturing

Retail

Technology

Healthcare

Energy

Telecommunications

Real Estate

Professional Services

Public Sector

Non-Profit Organizations

Education

Relevant Teams

Audit

Finance

Risk Management

Compliance

Legal

Internal Audit

Corporate Governance

Executive Management

Board of Directors

Relevant Roles

Partner - Assurance Services

Director - Audit

Chief Financial Officer

Financial Director

Audit Committee Chairman

Company Secretary

Risk Manager

Compliance Officer

Chief Executive Officer

Managing Director

Board Chairman

Senior Manager - Assurance

Internal Audit Director

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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