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Assurance Engagement Letter Template for England and Wales

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Key Requirements PROMPT example:

Assurance Engagement Letter

"I need an Assurance Engagement Letter for a sustainability report assurance service to be provided to a FTSE 100 company, with specific focus on greenhouse gas emissions data and environmental compliance metrics, to be completed by March 2025."

Document background
The Assurance Engagement Letter serves as the foundational contract between assurance providers and their clients in England and Wales. This document is essential when independent verification or assessment of specific subject matter is required, whether for regulatory compliance, stakeholder confidence, or internal governance purposes. It clearly defines the engagement's scope, methodology, limitations, and deliverables while ensuring compliance with UK professional standards and regulatory requirements. The letter protects both parties by establishing clear expectations and responsibilities while adhering to relevant legal and professional frameworks.
Suggested Sections

1. Addressee Details: Full details of the client entity including registered address and company number

2. Engagement Objective: Clear statement of the purpose and scope of the assurance engagement, including subject matter and criteria

3. Professional Standards: Reference to applicable professional standards (ISAE, FRC requirements) being followed

4. Responsibilities: Detailed outline of both practitioner's and client's responsibilities throughout the engagement

5. Fee Arrangements: Details of fees, payment terms and billing arrangements for the engagement

6. Acceptance: Section for client signature and acceptance of terms

Optional Sections

1. Specific Limitations: Any specific limitations of scope or restrictions on the engagement - include when engagement has restricted scope

2. Third Party Rights: Rights of third parties to rely on the assurance report - include when report may be shared with specified third parties

3. Electronic Distribution: Terms for electronic distribution of reports - include if electronic delivery is expected or permitted

4. Independence Statement: Specific statements about firm's independence - include for public interest entities or when specifically required

Suggested Schedules

1. Scope of Work: Detailed description of procedures to be performed and methodology to be applied

2. Standard Terms of Business: Firm's standard terms and conditions including liability limitations and confidentiality terms

3. Fee Schedule: Detailed breakdown of fees, charging structure, and payment terms

4. Timetable: Expected timeline, key milestones, and deliverable dates for the engagement

5. Team Structure: Key team members, their roles and responsibilities in delivering the engagement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
























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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Companies Act 2006: Primary legislation governing company operations in the UK, particularly sections relating to audit and assurance services

Financial Services and Markets Act 2000: Key legislation regulating financial services activities and markets in the UK

Data Protection Act 2018: UK implementation of GDPR, governing how personal data must be handled and protected

ISAE (International Standard on Assurance Engagements): Professional standards framework for conducting assurance engagements internationally

International Framework for Assurance Engagements: Fundamental framework defining elements and objectives of assurance engagements

ISAE 3000 (Revised): Specific standard for assurance engagements other than audits or reviews of historical financial information

FRC Guidelines: Standards and guidelines set by the Financial Reporting Council for professional services

ICAEW Requirements: Professional requirements set by the Institute of Chartered Accountants in England and Wales

Supply of Goods and Services Act 1982: Legislation governing contracts for the supply of services

Unfair Contract Terms Act 1977: Legislation regulating unfair terms in contracts and limiting the extent to which liability can be excluded

Consumer Rights Act 2015: Legislation protecting consumer rights in service contracts (if applicable to the engagement)

Money Laundering Regulations 2017: Regulations concerning anti-money laundering and terrorist financing requirements for professional services

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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