Audit Engagement Letter Template for Denmark

The Audit Engagement Letter is a mandatory document required under Danish law and International Standards on Auditing (ISA 210) before commencing any audit engagement. This document is used when a company in Denmark requires statutory audit services, whether due to size thresholds, regulatory requirements, or voluntary choice. The letter establishes the fundamental terms of the audit relationship, including scope, responsibilities, and deliverables, while ensuring compliance with the Danish Auditors Act, EU Audit Regulation, and other relevant Danish legislation. It serves as the primary reference point for the audit engagement and must be renewed or updated when significant changes occur in the scope or nature of the audit services.

1. Letterhead and Date: Audit firm's official letterhead with full contact details and date

2. Addressee: Client company name, attention to those charged with governance (typically the Board of Directors)

3. Introduction: Purpose of the letter and confirmation of the appointment as auditors

4. Scope of Audit: Detailed description of the audit scope, including the financial statements to be audited and the reporting period

5. Audit Objectives: Description of the objective to express an opinion on the financial statements in accordance with ISAs and Danish audit requirements

6. Responsibilities of the Auditor: Detailed outline of the auditor's responsibilities, including conducting the audit in accordance with ISAs and Danish requirements

7. Responsibilities of Management: Clear statement of management's responsibilities regarding financial statements preparation and internal controls

8. Reporting Requirements: Description of the expected form and content of the auditor's report and other communication requirements

9. Timing and Fees: Overview of the audit timeline and fee structure

10. Data Protection Compliance: Statement regarding GDPR compliance and data handling procedures

11. Confirmation and Signatures: Request for acknowledgment and agreement to terms, with space for signatures