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Audit Engagement Letter John Smith ACME Audit, Inc. 1234 Main Street Arlington, TX 7!1! Jul" 7, 2!11 2!11 Mr. Joe Jac#$on %7& S#" Circle 'r. 'alla$, TX 7%2!2 (e) Audit Engagement 'ear Mr. Jac#$on, Thi$ letter con*rm con*rm$ $ our under$tanding under$tanding o+ o+ the re-iou$l" re-iou$l" di$cu$$ed di$cu$$ed arrangement$ +or our audit o+ the *nancial $tatement$ o+ Jac#$on Enterri$e$, +or the "ear ending 2!11. e /ill audit the Coman"0$ alance $heet a$ o+ 12312!11, along /ith the related $tatement$ o+ Income, retained earning$, and ca$h o/$ +or all o+ 2!11. a$ed on thi$ audit /e /ill ro-ide our ro+e$$ional oinion. The *nancial $tatement$ are the re$on$iilit" o+ Jac#$on Enterri$e$ management team. 5ur re$on$iilit" a$ "our auditor i$ to e6re$$ an oinion on the *nancial $tatement$ a$ed on our audit. e /ill conduct our audit roce$$ in accordance /ith generall" acceted auditing $tandard$. The$e $tandard$ reuire that /e conduct the audit to otain rea$onale a$$urance i+ the *nancial $tatement$ are +ree o+ +al$e and mi$leading $tatement$. An audit o+ thi$ nature /ill al$o a$$e$$ the accounting rincile$ that "our coman" u$e$ along /ith e$timate$ that are made " management. 5ur audit /ill ro-ide the a$i$ +or our oinion. The rocedur rocedure$ e$ that /e u$e /ill /ill include te$t$ te$t$ o+ documentar" documentar" e-idence e-idence that $uort$ the tran$action$ recorded in "our coman"0$ account$ along /ith direct con*rmation o+ all recei-ale$ and liailitie$ through corre$ondence /ith randoml" $elected cu$tomer$, creditor$ and an#$.
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Thi$ audit cannot e relied uon to detect all +raud or other irregularitie$. :o/e-er, /e /ill in+orm "ou o+ an" material error$ or illegal act$ that come to our attention through the audit roce$$. I+ "ou are lanning on uli$hing or reroducing the *nancial $tatement$ and ma#e re+erence to our *rm and audit, "ou agree to gi-e u$ the rinter0$ roo+$ +or our re-ie/ and aro-al e+ore rinting commence$. A$ art o+ our audit engagement +or the "ear ending 2!11, a re-ie/ /ill e conducted o+ "our coman"0$ +ederal and $tate income ta6 return$ +or Jac#$on Enterri$e$. e /ill e a-ailale throughout the "ear +or an$/ering ue$tion$ regarding the ta6 e;ect$ o+ an" roo$ed tran$action$ or alteration$ to current u$ine$$ olicie$. The +ee$ /e /ill e charging /ill e illed to "ou a$ /or# rogre$$e$ and are a$ed on the amount o+ time that i$ reuired to comlete deli-erale$ lu$ an" out o+ oc#et e6en$e$. In-oice$ /ill e due immediatel" uon receit. I+ there aear$ to e an error in our e$timated total co$t "ou /ill e noti*ed immediatel". I+ thi$ letter i$ a correct rere$entation o+ "our under$tanding, lea$e $ign the enclo$ed co" and return it to u$ romtl". e areciate the oortunit" to conduct "our audit and $er-e "ou and loo# +or/ard to /or#ing /ith "ou +or man" more "ear$.