Can an agreement be signed electronically?

Yes. Under the ESIGN Act (15 U.S.C. ch. 96) and state UETA laws, electronic signatures are enforceable for most agreements provided intent, consent, attribution, and retention requirements are met.

Is notarization required?

Not typically for audit engagement agreements. Notarization is rarely required unless specific state or transaction circumstances demand it; confirm with counsel.

What if a signer lacks authority?

If the signer lacks actual authority, the agreement may be voidable. Confirm signer authority in the agreement or attach a corporate resolution where necessary.

How to handle scope changes?

Document scope changes in a written amendment or change order signed by both parties; include fee and schedule adjustments to avoid disputes.

Are audit agreements subject to HIPAA?

If the auditor will access protected health information, include a Business Associate Agreement and privacy safeguards consistent with HIPAA (45 CFR §164.530(j)).

How should executed copies be stored?

Keep executed originals or certified copies in secure storage, export to PDF/A for long-term preservation, and retain per retention policies and regulatory requirements.

Electronic Signature
Templates
Miscellaneous
Audit Services Agreement

Audit Services Agreement

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Audit Services Agreement

This Audit Services Agreement ("Agreement") is entered into as of by and between the following parties:

Client Name: Address:

Auditor Name: Address:

WHEREAS

WHEREAS, Client desires that Auditor perform an audit of Client's financial statements and related records for the period(s) specified herein (the "Audit"), and Auditor represents that it has the personnel, qualifications and professional expertise to perform the Audit in accordance with applicable professional standards;

WHEREAS, Auditor agrees to perform the Audit and deliver the agreed-upon reports subject to the terms and conditions set forth in this Agreement; and

WHEREAS, the parties intend that the Audit be completed and the resulting report delivered in accordance with the schedule and scope set forth below.

SCOPE OF WORK

Auditor shall perform an audit of Client's financial statements for the period(s) beginning through . The Audit shall be conducted in accordance with generally accepted auditing standards and will include such procedures as Auditor deems necessary to express an opinion on the financial statements.

Detailed Scope / Deliverables

PAYMENT TERMS

Client shall pay Auditor for services rendered as set forth below. All fees are exclusive of applicable taxes and reimbursable expenses unless otherwise specified.

Total Audit Fee Payment Schedule Reimbursable Expenses Late Payment / Interest

TERM AND TERMINATION

This Agreement commences on and continues until unless earlier terminated in accordance with this Section.

Either party may terminate this Agreement for convenience upon days' prior written notice to the other party. Either party may terminate for material breach if the breaching party fails to cure such breach within days after written notice of the breach.

Upon termination, Client shall pay Auditor for all services performed and reimbursable expenses incurred through the effective date of termination. Auditor shall deliver to Client all work product completed as of the termination date and shall, at Client's request, deliver an accounting of time and expenses incurred.

CONFIDENTIALITY

Each party (the "Recipient") shall hold in confidence and not disclose to any third party any non-public information received from the other party (the "Discloser") in connection with the Audit, except as required to perform its obligations under this Agreement. Confidential information does not include information that: (a) is or becomes generally available to the public other than as a result of a breach of this Agreement; (b) was in Recipient's possession prior to disclosure by Discloser without an obligation of confidentiality; or (c) is rightfully obtained by Recipient from a third party without restriction and without breach of any obligation of confidentiality.

If Recipient is required by law, regulation or valid legal process to disclose Confidential Information, Recipient shall promptly notify Discloser (to the extent legally permitted) and cooperate with Discloser in seeking a protective order or other appropriate remedy. The obligations of confidentiality shall survive termination of this Agreement for years.

LIMITATION OF LIABILITY

Auditor's liability to Client for any claim arising out of or relating to this Agreement, whether in contract, tort or otherwise, shall be limited to direct damages and shall not exceed the aggregate fees paid to Auditor under this Agreement. In no event shall either party be liable for consequential, incidental, special or punitive damages.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflicts of law principles. The parties submit to the exclusive jurisdiction of the state and federal courts located in that State for any dispute arising under this Agreement.

ENTIRE AGREEMENT

This Agreement, together with any exhibits or attachments expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals, negotiations and communications, whether written or oral. Any amendment or modification to this Agreement must be in writing and signed by authorized representatives of both parties.

NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth above (or to such other address as a party may designate by written notice). Notice is effective upon (i) personal delivery, (ii) one business day after deposit with a nationally recognized overnight courier, or (iii) three business days after mailing by certified mail, return receipt requested.

Client Printed Name:

By:

Date:

Auditor Printed Name:

By:

Date:

What an Audit Services Agreement Covers

An Audit Services Agreement is a written contract between an audit firm and a client that defines the scope, deliverables, timing, responsibilities, and fees for an audit engagement. Typical uses include financial statement audits, agreed-upon procedures, internal control reviews, SOC reports, and compliance audits. The agreement sets professional standards to be followed, references applicable auditing standards, states confidentiality obligations, and allocates liability and indemnification. It also identifies report recipients, record access rights, and termination terms so both parties understand expectations before fieldwork begins.

Why a Clear Agreement Matters

A precise Audit Services Agreement reduces scope disputes, clarifies deliverables and timing, protects confidential information, and helps ensure compliance with professional standards and client expectations.

Who Typically Prepares and Signs This Agreement

The agreement is prepared by the audit firm and reviewed by client management or legal counsel before signing.

Audit firms and engagement partners responsible for scope and methodology.
Company finance officers or general counsel who approve terms and fees.
External stakeholders or regulators when required for compliance reporting.

Clear delegation and signatory authority help avoid later disputes and support enforceability.

Key Signatory Roles

Engagement Partner

The audit firm's engagement partner or authorized representative signs for the auditor and accepts responsibility for delivery, staff allocation, and compliance with professional standards.

Client Officer

A named client executive (CFO, CEO, or authorized legal representative) signs for the client and confirms access to records, cooperation commitments, and fee approvals.

Core Clauses to Include

A professional Audit Services Agreement contains standard clauses to define scope, timing, authority, and risk allocation.

Scope of Work

Describe the audit type, objectives, procedures, and any agreed-upon limitations so both parties share the same expectations about what will and will not be covered.

Deliverables

List reports, management letters, and electronic files to be delivered, including format, distribution list, and any confidential handling instructions.

Timing and Milestones

Specify start and end dates, fieldwork windows, draft report deadlines, and final report delivery to manage resourcing and client expectations.

Fees and Billing

State fixed fees or hourly rates, billing intervals, expense reimbursement rules, and payment terms to prevent billing disputes.

Access and Records

Define client obligations to provide records, personnel access, and third-party confirmations required to perform the audit.

Liability and Indemnity

Include limits on liability, insurance requirements, and indemnification clauses consistent with professional standards and client negotiation.

Essential Agreement Data Fields

Client Legal Name: Full registered entity name

Auditor Legal Name: Firm name as on license

Engagement Period: Start and end dates

Scope Summary: One-line scope description

Fee Structure: Fixed fee or hourly

Governing Law: State selected for disputes

Step-by-Step: Completing the Agreement

Follow these sequential steps to prepare, review, and sign an Audit Services Agreement with minimal friction.

01

Draft Terms: Prepare scope, fees, and schedule.
02

Internal Review: Client legal and finance review.
03

Negotiate: Resolve scope and liability terms.
04

Execute: Obtain authorized signatures.

How to Configure an Online Signing Workflow

Set up the digital workflow to reflect signer order, required fields, and authentication levels before sending the agreement.

Field	Configuration
Signer Order	Sequential or parallel as needed
Required Fields	Signature, date, printed name
Authentication	Email or SMS code; upgrade for KBA
Notifications	Enable reminders and completion receipts

Where to Send the Agreement and Typical Routing

Determine recipient roles and final delivery locations to ensure proper distribution and record retention.

To Audit Partner: Firm signs to accept engagement.
To Client CFO: Client approves and signs.
To Legal Counsel: Optional review for indemnities.
Final Distribution: Send executed copies to all parties.

Digital Signing and File Format Considerations

Use a platform that supports common formats, audit trails, and optional stronger signer authentication for compliance.

File Types: PDF, DOCX supported
Audit Trail: Timestamp and IP recorded
Integrations: Connects to CRM and cloud storage

Ensure the chosen platform supports record export, long-term storage formats (PDF/A), and any required attestations for regulators or internal audit.

Typical Timing and Delivery Expectations

Agreed timelines reduce misunderstandings. Set clear draft and final delivery dates and document any conditions that may change schedules.

Engagement Start:

Fieldwork begins on the agreed start date

Planning Complete:

Audit plan finalized before fieldwork

Draft Report:

Draft issued for management comments (commonly within 30 days)

Final Report:

Final report delivered after responses are addressed

Regulatory Filing:

Allow extra time if reports require regulator submission

Key Engagement Milestones

Track these sequential milestones to monitor progress from engagement acceptance through final reporting.

01

Engagement Letter Signed

Agreement executed and access granted to begin planning.

02

Planning and Risk Assessment

Audit procedures and staffing are finalized.

03

Fieldwork and Testing

Evidence is collected and testing performed.

04

Reporting and Closeout

Draft and final reports issued; billing completed.

Common Preparation Errors to Avoid

Vague scope language that omits specific procedures or deliverables, leading to scope disputes and added work.
Missing signer authority where the person signing lacks explicit authorization or corporate resolution to bind the client.
Unclear fee terms or expense pass-through clauses that cause invoice disagreements during or after the engagement.
Insufficient access commitments or unavailable records that delay fieldwork and extend timelines and costs.

Legal and Practical Risks of an Incomplete Agreement

Scope Disputes: Unclear obligations

Billing Disputes: Unstated fees or reimbursements

Regulatory Noncompliance: Missing required disclosures

Confidentiality Breach: Improper data handling

Liability Exposure: Unlimited damages risk

Enforceability Issues: Improper signatures

Example Use Cases

Real-world examples show how Audit Services Agreements are tailored to different engagements.

Private Company Financial Audit

A mid-size company engaged an auditor for annual financial statements

scope limited to balance sheet and income statement testing
the agreement specified a 90-day timeline, fixed fee, and confidentiality terms for investor distribution.

SOC 2 Readiness Review

A SaaS vendor hired an auditor for an agreed-upon SOC 2 readiness review

work focused on control design versus operating effectiveness
the agreement included a timeline for remediation and delivery of a readiness memo.

eSignature Provider Pricing Snapshot for Signing Agreements

Common features for executing Audit Services Agreements include per-user pricing, trial availability, bulk send, audit trails, HIPAA support, and envelope limits; compare vendors by these criteria.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes (Business Premium+)	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA)	Yes	Yes	No	No

Frequently Asked Questions

Answers to common questions about completing, signing, and enforcing Audit Services Agreements.

Need help? Contact support

Can an agreement be signed electronically?
Yes. Under the ESIGN Act (15 U.S.C. ch. 96) and state UETA laws, electronic signatures are enforceable for most agreements provided intent, consent, attribution, and retention requirements are met.
Is notarization required?
Not typically for audit engagement agreements. Notarization is rarely required unless specific state or transaction circumstances demand it; confirm with counsel.
What if a signer lacks authority?
If the signer lacks actual authority, the agreement may be voidable. Confirm signer authority in the agreement or attach a corporate resolution where necessary.
How to handle scope changes?
Document scope changes in a written amendment or change order signed by both parties; include fee and schedule adjustments to avoid disputes.
Are audit agreements subject to HIPAA?
If the auditor will access protected health information, include a Business Associate Agreement and privacy safeguards consistent with HIPAA (45 CFR §164.530(j)).
How should executed copies be stored?
Keep executed originals or certified copies in secure storage, export to PDF/A for long-term preservation, and retain per retention policies and regulatory requirements.

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