The engagement letter — what it must cover, how it gets accepted, and when terms get changed.
To accept or continue an audit engagement only when the basis upon which it is to be performed has been agreed, by establishing whether the preconditions for an audit are present and confirming a common understanding of the terms.
SA 210 sits in the General phase of the audit. The Standards on Auditing are issued by the ICAI Auditing and Assurance Standards Board (AASB) and deemed to be prescribed by the Central Government under Section 143(10) of the Companies Act 2013. Compliance with SAs is mandatory for every audit conducted by a Chartered Accountant in India.
For authoritative text, refer to the ICAI AASB Compendium of Standards on Auditing at icai.org.
Editable, letterhead-ready formats that put SA 210 into practice — built from the ICAI working-paper set, free to download.
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SA 210 — Agreeing the Terms of Audit Engagements — is a Standard on Auditing issued by the ICAI Auditing and Assurance Standards Board. The engagement letter — what it must cover, how it gets accepted, and when terms get changed. To accept or continue an audit engagement only when the basis upon which it is to be performed has been agreed, by establishing whether the preconditions for an audit are present and confirming a common understanding of the terms.
Yes. Standards on Auditing are deemed to be prescribed under Section 143(10) of the Companies Act 2013, and ICAI members must comply with them in every audit of historical financial information. Non-compliance must be justified and can attract professional consequences in peer review, NFRA inspection, and disciplinary proceedings.
Documentation sufficient for an experienced auditor with no previous connection to the audit to understand what was done and why (SA 230). For SA 210 in the general phase, that means evidencing: Preconditions: management's use of an acceptable FR framework + acknowledgement of management's responsibilities; Written engagement letter agreed with management / TCWG; Terms cover: objective and scope, auditor's responsibilities, management's responsibilities, form of report.
