The Audit Engagement Letter is a mandatory document required before commencing any audit engagement in Hong Kong. It serves as the primary contract between an audit firm and its client, establishing the framework for the audit relationship and documenting the agreed-upon terms of the engagement. The letter must comply with Hong Kong Standards on Auditing (particularly HKSA 210), the Professional Accountants Ordinance, and requirements set by the Hong Kong Institute of Certified Public Accountants. It typically includes detailed sections covering scope of work, responsibilities, fee arrangements, and specific regulatory requirements applicable to the Hong Kong market. For listed companies, additional provisions addressing Securities and Futures Commission requirements must be incorporated.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
Alternatively...
1. Addressee Details: Full name and address of the client company and the appropriate addressee (usually those charged with governance)
2. Introduction: Opening paragraph identifying the purpose of the letter and confirmation of the appointment
3. Scope of Audit: Detailed description of the audit services to be provided, including the applicable financial reporting framework
4. Auditor's Responsibilities: Clear statement of the auditor's responsibilities under HKSAs, including the inherent limitations of an audit
5. Management's Responsibilities: Detailed outline of management's responsibilities regarding financial statements, internal controls, and providing access to information
6. Reporting Requirements: Description of the expected form and content of the auditor's report
7. Fees and Billing Arrangements: Details of audit fees, payment terms, and billing schedule
8. Timeline: Expected timeline for the audit process and key deliverables
9. Confirmation and Acceptance: Request for client's acknowledgment and acceptance of terms
10. Professional Standards Statement: Reference to compliance with relevant professional standards and HKICPA requirements
1. Group Audit Arrangements: Required when the client is a parent company and the audit involves multiple components or subsidiaries
2. Specific Regulatory Requirements: Needed for regulated entities such as listed companies or financial institutions
3. Other Services: Include when additional non-audit services are to be provided alongside the audit
4. Use of External Experts: Required when the audit will involve external specialists or experts
5. Electronic Communications Protocol: Include when specific arrangements for electronic communication and data sharing need to be established
6. Independence Declaration: Detailed independence statement required for listed companies or when specifically requested
7. Conflict Resolution Procedures: Include for high-risk engagements or when specifically requested by the client
1. Schedule 1: Audit Team Structure: Details of key audit team members and their roles
2. Schedule 2: Fee Schedule: Detailed breakdown of fees, including hourly rates if applicable
3. Schedule 3: Audit Timeline: Detailed timeline with key dates and deliverables
4. Appendix A: Standard Terms and Conditions: Firm's standard terms and conditions for audit services
5. Appendix B: Management Representation Letter Template: Template of the management representation letter required at audit completion
6. Appendix C: Required Information List: Detailed list of documents and information required from the client
Authors
Find the document you need
Engagement Letter Company Secretarial Services
A Hong Kong-governed engagement letter establishing terms for company secretarial services provision, including scope, fees, and compliance requirements.
Download
Engagement Letter For Preparation Of Financial Statements
A Hong Kong law-governed engagement letter establishing terms for professional accounting services in financial statement preparation.
Download
Engagement Letter For Accounting And Tax Services
A Hong Kong law-governed engagement letter establishing terms for accounting and tax services between a professional firm and its client.
Download
Expert Engagement Letter
A Hong Kong law-governed letter agreement establishing terms for expert services, including scope, fees, and professional obligations.
Download
Audit Engagement Letter
A Hong Kong-compliant engagement letter establishing the terms and conditions for statutory audit services between an audit firm and its client.
Download
Assurance Engagement Letter
A Hong Kong-compliant letter establishing terms and conditions for professional assurance services between a service provider and client.
Download
Retainer Letter
A Hong Kong-governed professional engagement document that establishes the terms and conditions for ongoing service provision between a service provider and client.
Download
Engagement Letter For Consulting Services
A Hong Kong law-governed letter establishing the terms and conditions of a consulting engagement between a consultant and client.
Download
Audit Acceptance Letter
A formal letter issued by an audit firm in Hong Kong accepting appointment as statutory auditors, outlining engagement terms and conditions under Hong Kong law.
Download
Letter Of Employment Verification
A formal document under Hong Kong law confirming an individual's employment status, position, and duration of service with a company.
Download
Consulting Contract
Hong Kong-governed agreement establishing terms and conditions for consulting services between client and consultant.
Download
Genie’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your data is private:
We do not train on your data; Genie’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
