Document background
The Audit Communication Letter is a crucial document required at the commencement of audit engagements in Nigeria, governed by the Companies and Allied Matters Act 2020 and Nigerian Standards on Auditing. This document is typically issued by the audit firm to establish clear communication channels, protocols, and expectations during the audit process. It becomes necessary when initiating a new audit engagement or updating communication terms for existing clients, particularly following changes in regulatory requirements or client circumstances. The letter addresses specific Nigerian regulatory requirements, including those from the Financial Reporting Council of Nigeria and the Institute of Chartered Accountants of Nigeria, while outlining the format and frequency of communications, confidentiality obligations, and reporting responsibilities. It serves as a reference document throughout the audit engagement and helps ensure compliance with local professional standards and regulatory requirements.
