Audit Engagement Acceptance / Continuation Checklist (ICAI)

A risk-assessment checklist for accepting a new audit client or continuing an existing one — management integrity, reporting personnel, incentives to manipulate, and more.

Free · ICAI AASB (June 2023)

Updated 28 May 2026

Standard

SA 220 (Revised), SQM 1

Decision by

Engagement partner + firm leadership

When

Before issuing engagement letter

Re-evaluate

Annually + on material change

Your firm — letterhead

Appears at the top of the document as the audit firm letterhead.

Audit firm name

Audit firm address

Used as the letterhead block.

Engagement partner

ICAI membership no.

Firm registration no.(optional)

Engagement details

The client and period this document is for.

Client / company name

Period ended

The financial year-end this engagement covers, e.g. 31 March 2026.

Date of letter

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Audit Engagement Acceptance / Continuation Checklist

29 May 2026

(Following draft may be used)

Client/Engagement Acceptance Decision Checklist

XYZ Company Private limited– FY 2xx3

Risk Assessment Criteria	Response
1. The reputation of the company and its management
2. The effectiveness of its Board (Capabilities and track record of management)
3. The background and experience of the client’s financial reporting personnel
4. Any incentives or inclinations for management to manipulate reported results
5. Any significant transactions structured to achieve revenue recognition
6. Any unusually aggressive or creative accounting (Any evidence of lack of integrity/ethics, poor control environment)
7. Any transactions that are complex, unusual, or difficult to evaluate
8. Any estimates that involve uncertainty or subjective judgments which cannot be addressed
9. Any transactions with related parties that are not part of the consolidated group
10. Any indications that the company might be in financial difficulty (Review financial condition, consider inherent risks for client and its industry)
11. A lack of required expertise for the engagement team
12. Are we independent and can we conduct the audit in accordance with ethical requirements

Remarks (Assess Risk into High, Medium, Low):

You may make an assessment, whether the category is High, Medium or Low based on above checklist

Decision –

You may mention here that the assignment has been accepted or rejected based on your judgement

(Remarks for not accepting) –

If not accepting, please mention a brief reason of not accepting the assignment.

Free · Email required once · Firm data stays in your browser

What’s inside

An excerpt from the template.

Client/Engagement Acceptance Decision Checklist

Remarks (Assess Risk into High, Medium, Low):

You may make an assessment, whether the category is High, Medium or Low based on above checklist

You may mention here that the assignment has been accepted or rejected based on your judgement

↑ Excerpt only — the full template is what you download as Word

About this template

What you’re downloading, and when to use it.

This template follows the format published by the Institute of Chartered Accountants of India (ICAI) in the AASB Audit Working Paper Templates (June 2023), the authoritative reference for Indian statutory-audit documentation. Fill in your firm’s letterhead and the engagement details on the form above, click Download Word file, and you’ll get a fully formatted .docx ready to use.

Everything is generated in your browser and on a stateless API endpoint — no account, no email gate, nothing stored. Edit freely in Word, Google Docs or Pages before sending to your client.

Common questions

FAQs.

Why does ICAI require an engagement acceptance checklist?

SA 220 (Revised) — Quality Management for an Audit of Financial Statements — and SQM 1 require the firm to evaluate client integrity, the firm's ability to perform the engagement, and compliance with ethical requirements before accepting or continuing an engagement. This checklist documents that evaluation.

How often should the continuation decision be re-evaluated?

At minimum, annually before signing the engagement letter for the new year. Earlier if you become aware of any significant change in client circumstances (change of management, fraud allegations, going concern issues).

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