NPO-CL-1.2.2 - Audit Engagement Letter—Single Audit—After Implementing SAS No. 134

Sep 15, 2026

Uploaded by Asher

Audit engagement letter template confirming the auditor’s understanding of services to be provided for a nonprofit organization for a specified period. It defines audit scope and objectives, including reasonable assurance on whether the financial statements are free from material misstatement and an auditor’s report on fairness under U.S. GAAP, plus assessment of supplementary information. Responsibilities cover professional standards, evaluation of accounting policies and estimates, internal control and compliance reporting under Government Auditing Standards and the Single Audit framework (Uniform Guidance).

LanguageEnglish

CategoryLetters

FormatPDF

Pages37

Reading Time13 min

AccessFree to download

Audit Scope and Objectives

Supplementary Information and Schedule of Federal Awards

Objectives of the Audit

Auditor’s Responsibilities for Financial Statements and Single Audit

NPO-CL-1.2.2: Audit Engagement Letter—Single Audit—After Implementing SAS No. 134 and Related SASsa, b [CPA Firm’s Letterhead] [Date] [Identify the body or individual(s) charged with governance.] and [Name of Management] c [Client’s Name and Address] We are pleased to confirm our understanding of the services we are to provide for [Client’s Legal Name] for the [period, year, OR years] ended [Date(s)] . Audit Scope and Objectives We will audit the financial statements of [Name of Nonprofit Organization] , which comprise the statement(s) of financial position as of [period OR year end(s)] , the related statements of [activities, functional expenses, and cash flows OR activities and cash flows] d for the [period, year, OR years] then ended, and the disclosures (collectively, the “financial statements”) .e Also, the following supplementary information accompanying the financial statements will be subjected to the auditing procedures applied in our audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America (GAAS), and we will provide an opinion on it in relation to the financial statements as a whole [in a separate written report accompanying our auditor’s report on the financial statements OR in a report combined with our auditor’s report on the financial statements] .f, g 1. Schedule of expenditures of federal awards. 2. 3. The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and issue an auditor’s report that includes our opinion about whether your financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of Americah, and to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as whole. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment of a reasonable user made based on the financial statements. The objectives also include reporting on: ¯ Internal control over financial reporting and compliance with provisions of laws, regulations, contracts, and award agreements, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards. ¯ Internal control over compliance related to major programs and an opinion (or disclaimer of opinion) on compliance with federal statutes, regulations, and the terms and conditions of federal awards that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) . NPO-CL-1.2.2 Auditor’s Responsibilities for the Audit of the Financial Statements and Single Auditi, j We will conduct our audit in accordance with GAAS; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions of the Uniform Guid

FAQs

What does the audit engagement letter confirm for the nonprofit client?

It confirms the auditor’s understanding of services to be provided for the client for the stated period ending on the given date(s).

Which areas does the audit cover and how is the supplementary information handled?

The audit covers the financial statements and subjects accompanying supplementary information to auditing procedures, including comparing and reconciling it to underlying records or the financial statements.

How does the letter describe auditor responsibilities under GAAS and the Single Audit framework?

It states the audit will follow GAAS and Government Auditing Standards, include tests of accounting records, determination of major programs, and evaluation of accounting policies, estimates, presentation, internal control, and compliance with applicable requirements.

Sep 15, 2026

Uploaded by Asher