Document background
The Audit Acceptance Letter is a crucial document in the Philippine audit engagement process, required under Philippine Standards on Auditing (PSA) and overseen by the Philippine Securities and Exchange Commission. This document is used when an audit firm formally accepts an appointment to conduct an external audit, typically following a client's audit proposal process or reappointment decision. The letter encompasses key elements required by Philippine regulations, including the scope of services, respective responsibilities, professional fees, and timing. An Audit Acceptance Letter must comply with the Philippine Accountancy Act of 2004 and relevant professional standards, making it a legally significant document that establishes the professional relationship between the audit firm and the client. It's particularly important for ensuring clarity in engagement terms and meeting regulatory requirements for both listed and non-listed companies in the Philippines.
