Document background
The Engagement Letter For Audit Services is a crucial document required before commencing any statutory audit in Hong Kong. It is mandated by Hong Kong Standards on Auditing (HKSA 210) and forms the basis of the auditor-client relationship. This document is necessary whenever a company appoints or reappoints auditors for their annual statutory audit, as required under the Hong Kong Companies Ordinance. The letter details the scope of work, respective responsibilities, fee structure, and timeline for the audit engagement. It serves as a protection for both parties by clearly defining expectations and deliverables while ensuring compliance with professional standards and regulatory requirements. The engagement letter must be signed before the audit work begins and is typically renewed or updated annually to reflect any changes in circumstances or requirements.
