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Audit Proposal for United Arab Emirates

Audit Proposal Template for United Arab Emirates

A comprehensive document prepared in accordance with UAE Federal Law No. 12 of 2014 and related regulations, outlining the proposed audit services, methodology, timeline, and commercial terms for conducting statutory or voluntary audits. The proposal includes detailed information about the audit firm's qualifications, approach, team composition, and fee structure, while ensuring compliance with UAE audit standards and international best practices. It serves as the foundation for establishing the audit engagement and, when accepted, forms the basis for the subsequent audit engagement letter.

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What is a Audit Proposal?

An Audit Proposal is a formal document used to initiate professional audit services in the United Arab Emirates, prepared in compliance with UAE Federal Law No. 12 of 2014 and related regulatory requirements. This document is typically prepared by licensed audit firms when responding to audit tender requests or approaching potential clients for statutory, voluntary, or specialized audit services. The proposal outlines the audit firm's understanding of the client's requirements, proposed methodology, team structure, timelines, and commercial terms. It must adhere to UAE audit regulations while incorporating international audit standards and best practices. The document serves as the initial step in establishing an audit engagement and demonstrates the audit firm's capabilities, independence, and professional approach to delivering audit services.

What sections should be included in a Audit Proposal?

1. Executive Summary: Brief overview of the proposed audit services and key value propositions

2. Firm Overview: Introduction to the audit firm, including qualifications, licenses, and relevant experience in the UAE market

3. Understanding of Requirements: Demonstration of understanding the client's specific needs and audit requirements

4. Audit Approach and Methodology: Detailed explanation of the audit process, methodology, and compliance with UAE regulations and international standards

5. Scope of Services: Comprehensive outline of included audit services and deliverables

6. Project Team: Introduction to key team members, their qualifications, and roles in the engagement

7. Timeline and Milestones: Proposed schedule for the audit engagement including key dates and deliverables

8. Fee Structure: Detailed breakdown of fees, payment terms, and any additional costs

9. Terms and Conditions: Standard terms governing the audit engagement, including confidentiality and liability provisions

What sections are optional to include in a Audit Proposal?

1. Industry Expertise: Detailed section on specific industry experience, recommended for complex industries or specialized audits

2. Technology and Tools: Overview of audit software and tools to be used, relevant for technology-focused clients or digital audits

3. Quality Control Procedures: Detailed quality assurance processes, important for large corporate clients or regulated industries

4. Value-Added Services: Additional services or insights offered beyond the core audit scope

5. Sustainability and ESG Considerations: Environmental, Social, and Governance audit considerations, relevant for clients with ESG reporting requirements

6. Previous Experience: Case studies or relevant past engagements, useful for building credibility with new clients

What schedules should be included in a Audit Proposal?

1. Schedule A - Detailed Fee Breakdown: Itemized fee structure including hourly rates and estimated hours per service area

2. Schedule B - Project Timeline: Detailed project plan with specific dates, milestones, and deliverables

3. Schedule C - Team Profiles: Detailed CVs and qualifications of key team members

4. Schedule D - Audit Program: Detailed audit procedures and testing approaches

5. Appendix 1 - Firm Credentials: Certificates, licenses, and professional memberships

6. Appendix 2 - Quality Control Manual Excerpts: Relevant sections of the firm's quality control procedures

7. Appendix 3 - Standard Working Paper Templates: Sample templates and formats for audit documentation

8. Appendix 4 - Insurance Certificates: Professional indemnity and liability insurance documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Publisher

Genie AI

Cost

Free to use

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