Document background
The Assurance Engagement Letter is a critical document used in the Philippines when a professional services firm is engaged to provide assurance services to a client organization. It is required by Philippine professional standards and regulatory frameworks, particularly PSAE 3000 and the Philippine Standards on Auditing. The letter serves multiple purposes: it defines the engagement's scope and objectives, establishes the responsibilities of both parties, outlines the methodology and approach, specifies deliverables and timelines, and details the fee arrangements. This document is essential for ensuring clear communication and understanding between the assurance provider and the client, while also maintaining compliance with Philippine regulatory requirements and professional standards. The Assurance Engagement Letter helps protect both parties' interests by clearly documenting the terms of the engagement and setting expectations for the service delivery.
