Document background
The Audit Engagement Agreement is a fundamental document used when establishing a professional audit relationship between an audit firm and a client organization in Canada. This agreement is essential for defining the parameters of the audit engagement, ensuring compliance with Canadian Auditing Standards (CAS), and protecting both parties' interests. It becomes necessary when an organization requires an external audit, whether due to regulatory requirements, stakeholder demands, or internal governance policies. The document comprehensively addresses audit scope, professional standards, independence requirements, liability limitations, and practical arrangements such as timing and fees, all while adhering to Canadian federal and provincial regulatory frameworks. It serves as the primary reference point for the entire audit engagement and helps ensure clear communication and understanding between all parties involved.
