The Audit Letter is a critical document in the United States audit process, serving as a formal communication channel between external auditors and a client's legal counsel. This document is typically used during the annual audit process or special audit engagements to gather information about potential legal liabilities that could materially impact financial statements. The letter must comply with professional standards set by the AICPA, PCAOB, and relevant U.S. securities laws, particularly post-Sarbanes-Oxley Act requirements. It specifically requests information about pending litigation, unasserted claims, and legal assessments that could affect the company's financial position. The Audit Letter plays a crucial role in ensuring proper disclosure of legal matters and maintaining transparency in financial reporting, while respecting attorney-client privilege considerations.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
1. Date and Addressee: Current date and proper addressing to the client's legal counsel
2. Introduction: Identifies the purpose of the letter and the audit engagement, including the financial statement periods being audited
3. Scope of Inquiry: Clearly defines what information is being requested from legal counsel
4. Materiality Threshold: Specifies the materiality threshold for matters to be reported
5. Pending Litigation: Request for information about pending or threatened litigation
6. Unasserted Claims: Inquiry about potential unasserted claims and assessments
7. Response Timeline: Specified date by which response is requested
8. Confirmation Request: Request for confirmation of completeness of matters discussed
9. Closing and Signature: Professional closing, including name and title of signing partner
1. Specific Matter Inquiry: Additional paragraph addressing specific legal matters requiring special attention, used when there are known specific issues to address
2. Regulatory Matters: Section addressing specific regulatory investigations or proceedings, included when applicable
3. Environmental Matters: Special section for environmental liabilities and compliance, included for industries with significant environmental exposure
4. Cross-Border Considerations: Additional section for international legal matters, included when the client has significant international operations
1. Schedule of Pending Litigation: Detailed list of known pending litigation matters for counsel's reference and confirmation
2. Schedule of Threatened Claims: List of known threatened claims or assessments for counsel's review
3. Prior Response Reference: Copy or summary of previous counsel responses for continuing matters
4. Materiality Guidelines: Detailed explanation of materiality thresholds and evaluation criteria
Find the exact document you need
Audit Management Letter
A U.S.-compliant formal communication from auditors to management detailing audit findings, control deficiencies, and recommendations.
Download
Internal Audit Form
A US-compliant Internal Audit Form template for documenting audit procedures, findings, and recommendations in accordance with federal regulations and professional standards.
Download
Audit Letter
A standardized U.S. legal document used by auditors to request information from a client's legal counsel regarding material litigation and legal matters affecting financial statements.
Download
Audit Form
A standardized U.S.-compliant audit form for systematic evaluation of organizational operations, finances, and compliance status.
Download
Confirmation Letter Form
A U.S.-governed formal document used to confirm and record business arrangements, agreements, or understandings between parties.
Download
Balance Confirmation Letter
A U.S.-compliant formal document used to verify account balances between financial institutions and account holders, typically for audit purposes.
Download
Audit Confirmation Letter
A U.S.-compliant formal document used by auditors to obtain third-party verification of client information during the audit process.
Download
Cash Verification In Bank Audit
A U.S. regulatory-compliant document recording the verification of physical cash holdings during bank audits.
Download
Cash Count Audit Report
A US-compliant document recording and verifying cash counts in business operations, meeting federal audit requirements.
Download
łŇ±đ˛Ôľ±±đ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; łŇ±đ˛Ôľ±±đ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it