Document background
The Audit Engagement Letter is a crucial document required before commencing any audit engagement in Austria. It serves as the formal contract between the audit firm and the client company, establishing the framework for the audit relationship. This document must comply with Austrian legal requirements, particularly the Unternehmensgesetzbuch (UGB) and professional standards set by the Chamber of Tax Advisors and Auditors. The letter outlines the scope of the audit, respective responsibilities, reporting obligations, and engagement terms. It's particularly important in the Austrian context where statutory audits are mandatory for companies meeting certain size criteria and for regulated entities. The Audit Engagement Letter also needs to address specific local requirements while incorporating international audit standards (ISA) as adopted in Austria.
