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The Audit Acceptance Letter is a crucial document required under Nigerian corporate law and professional audit standards when an audit firm accepts appointment as statutory auditors. Used following the appointment of auditors by shareholders at the Annual General Meeting or by directors in case of a casual vacancy, this document formalizes the audit engagement in compliance with the Companies and Allied Matters Act 2020 and Financial Reporting Council requirements. The letter details the scope of work, responsibilities, timelines, and fee arrangements while confirming the audit firm's independence and professional qualifications. It serves as the foundational document for the audit relationship and must be in place before commencing any statutory audit work in Nigeria.

1. Addressee Details: Full name and address of the client company and appropriate officer (usually the Board of Directors or Audit Committee Chair)

2. Engagement Confirmation: Clear statement accepting appointment as auditors of the company for the specified financial year

3. Scope of Audit: Description of the audit scope, including the financial statements to be audited and the applicable financial reporting framework

4. Auditor's Responsibilities: Detailed outline of the auditor's responsibilities, including compliance with Nigerian Auditing Standards and professional requirements

5. Management's Responsibilities: Clear statement of management's responsibilities regarding financial statements preparation and internal controls

6. Reporting Commitments: Description of the expected audit reports and any other required communications

7. Timeline: Expected timeline for the audit process and report delivery

8. Fee Structure: Summary of audit fees and payment terms

9. Independence Declaration: Statement confirming the firm's independence in accordance with Nigerian regulations

10. Closing and Signature: Professional closing, including request for acknowledgment and acceptance