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Engagement Letter For Review Of Financial Statements
"I need an Engagement Letter for Review of Financial Statements for my Saudi-based manufacturing company, with the review to be completed by March 2025, including specific clauses about confidentiality and data protection as we handle sensitive industrial information."
1. Addressee Details: Formal address to the client's appropriate governance personnel or management
2. Purpose of Engagement: Clear statement of the engagement purpose and the financial statements to be reviewed
3. Scope of Review: Description of the nature of a review engagement, including its limitations compared to an audit
4. Management's Responsibilities: Detailed outline of management's responsibilities for financial statements and internal controls
5. Practitioner's Responsibilities: Description of the reviewer's responsibilities and the procedures to be performed
6. Independence Statement: Declaration of professional independence in accordance with SOCPA requirements
7. Report Format: Description of the expected format and content of the review report
8. Timeline and Deadlines: Expected timeframe for the review and key delivery dates
9. Fee Arrangements: Professional fees, payment terms, and billing arrangements
10. Confidentiality Commitment: Statement regarding confidentiality obligations and data protection
11. Governing Law: Statement that the engagement is governed by Saudi Arabian law
12. Acknowledgment and Acceptance: Space for client's acknowledgment and acceptance of terms
1. Group Reporting Requirements: Include when the client is part of a group structure requiring specific reporting considerations
2. Regulatory Compliance: Additional section for listed companies subject to CMA regulations
3. Use of External Experts: Include when specific expertise may be required during the engagement
4. Electronic Communications: Specific terms regarding electronic information exchange when relevant
5. Translation Requirements: Include when financial statements or reports need to be provided in multiple languages
6. Limitation of Liability: Specific liability limitations where permitted by Saudi law
7. Anti-Money Laundering Procedures: Detailed AML procedures when dealing with high-risk clients or sectors
1. Schedule A - Engagement Timeline: Detailed timeline of key dates and deliverables
2. Schedule B - Fee Schedule: Detailed breakdown of fees, payment terms, and additional charges
3. Schedule C - Required Information List: List of documents and information required from the client
4. Appendix 1 - Team Structure: Key engagement team members and their roles
5. Appendix 2 - Review Procedures: Detailed description of review procedures to be performed
6. Appendix 3 - Management Representation Letter Template: Template for required management representations
Authors
Manufacturing
Retail
Healthcare
Technology
Construction
Real Estate
Financial Services
Professional Services
Hospitality
Education
Transportation
Energy
Telecommunications
Mining
Agriculture
Finance
Accounting
Internal Audit
Compliance
Legal
Treasury
Executive Management
Board of Directors
Audit Committee
Chief Financial Officer
Financial Controller
Finance Director
Audit Committee Chair
Board Director
Managing Director
Chief Executive Officer
Finance Manager
Accounting Manager
Company Secretary
Compliance Officer
Internal Audit Manager
Treasury Manager
Financial Reporting Manager
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