💼 Proposal Template

Audit Proposal Template

Financial audit engagement proposal with scope, timeline, team. Example: FY2025 statutory audit.

What an audit proposal should set out

• The entity to be audited, and the financial period
• The framework the audit is conducted under, and the standards applied
• What is being expressed: an opinion on the financial report, not an assurance against fraud
• The team, their roles, and the partner responsible for the engagement
• The timetable: fieldwork, management response, and the signing date
• The fee basis, and what would cause it to change
• Information the client must provide, and by when
• Independence, and any other services your firm provides to the entity

Independence is the part a proposal must be explicit about

An audit proposal is partly a sales document and partly a declaration. Where your firm already provides other services to the client, the proposal is where the independence position gets addressed rather than assumed. Auditor independence obligations sit under the Corporations Act and professional standards, and they constrain what else the firm may do for the same entity.

• State the other services your firm provides to the entity and how independence is preserved
• Set out what happens if requested information is late — timetables slip and fees follow
• Describe the scope limitation risk plainly, so a qualified opinion is not a surprise

Making the timetable realistic

• Agree the date management accounts will be ready, not the date they are hoped for
• Name the client-side contact responsible for each request
• Build in the management letter and response before the signing date, not after

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General information only — not legal, tax or financial advice. For contracts and tax documents, confirm your obligations with a qualified professional or the relevant authority.