by An agreement between auditor and client outlines the details of an audit that can mitigate risk for both parties. The agreement will usually state the scope of work, how costs will be billed, and a timeline for completion. An effective agreement can also prevent scope creep by putting firm boundaries on what can be done during the auditing process and can reduce the number of potential future misunderstandings between both parties.
The audit engagement letter is usually sent by an auditor to the client before the beginning of an audit and will clearly outline the extent of an auditor’s responsibilities as well as any other conditions that may limit an audit. The document will also state a clear timeline of what work is expected to be completed during the audit, along with any anticipated obstacles that may cause delays in meeting deadlines.
An effective agreement can provide both the auditor and the client with a number of benefits, especially in terms of reducing the amount of time and energy that is required to complete an audit. It can also help to prevent scope creep and keep an audit within its predetermined boundaries. Additionally, an agreement can make it clear that services that lie outside of the auditing process will need to be negotiated with the client and that additional charges may apply.
Using Bonsai can streamline the auditing process, as each detail of a deal is recorded first and then automatically converted into a contractual agreement. This means that all parties see only one version of the deal and that there is a strong audit trail showing who has seen and changed what.
