Sample Draft Letter Format for appointment of Tax, Cost, Statuary or External Auditor in a
public company in India in word / .doc
July 2, 2013
M/s ABC Consultants & Associates
4/15 Aadwani Road
Delhi -125 545
With reference to the various discussions you had with ourselves, we hereby appoint you as our
Internal Auditor for the Financial Year 2013-2014 vide the resolution passed in the Board Meeting
held on 1 of May 2013.
The scope of work of the internal auditor will be to determine whether the organization’s network of
risk management, control and governance processes, as designed and represented by
management, is adequate and functioning in a manner to ensure:
1) Examination of accounts (including resources & investments), expenditure audit,
recoverable/payable, scrutiny of suspense and sundry accounts and other related records
and verification of assets and liabilities so as to ensure that transactions are promptly and
accurately recorded and reconciliation thereof. For the said purpose, transactions
accounted for in the books may have to be scrutinized with reference to the initial
documents and wherever necessary statistical comparison be made.
2) Examination of the system of internal control including internal check being followed at the
Factory and Head office for both soundness in principle and effectiveness in operation and
recommendation for improvement/additional safeguards that may be required for
strengthening the same. One of the objectives will be to build preventive safeguards
against frauds, misappropriations or other losses.
Opportunities for improving management control, profitability and the organization’s image may be
identified during audit. These should be communicated to the appropriate level of management.
For your ready reference also please find the Guidelines to Internal Auditor in Annexure-I & II.
The Remuneration decided is as follows :
Internal Audit Fees: Rs. 15,00,000.00 p.a
Stock Verification Fees: Rs. 5,00,000.00 p.a
For ROCKET SALES LTD