Document background
The Audit Acceptance Letter is a crucial document in the Indian corporate governance framework, required when a company appoints or reappoints statutory auditors. This document, mandated under the Companies Act 2013, formalizes the audit engagement and serves multiple purposes: it confirms the audit firm's independence and eligibility, establishes the scope of services, documents fee arrangements, and outlines professional standards to be followed. The Audit Acceptance Letter needs to be filed with relevant regulatory authorities and becomes part of the company's statutory records. It's particularly important as it forms the basis of the audit engagement and can be referenced in case of any future disputes or regulatory inquiries. The letter must comply with requirements set by the Institute of Chartered Accountants of India (ICAI) and, for listed companies, additional SEBI regulations.
