[Auditor’s Letterhead]
{date}
{PTE}
{Address}
Dear {PTE Contact name}
Auditor Engagement Letter
1. Introduction
The New Zealand Qualifications Authority (“NZQA”) requires {the PTE} to submit an audit opinion annually to NZQA, in the form prescribed by NZQA (the “Audit Opinion”). The form should be signed by an independent chartered accountant.
NZQA’s objective in requiring Private Training Establishments (PTEs) to submit this opinion is to obtain an appropriate level of assurance that both the PTE and the Trustee are compliant with the requirements of the Trust Deed and with NZQA Student Fee Protection Rules.
As Public Trust has a separate audit process, NZQA does not require the auditor to complete an audit of its trust account. Where Public Trust is the trustee, the trustee audit opinion will be supplied by its auditor.
The purpose of this letter is to set out the terms of the reasonable assurance engagement.
2. Scope of the Reasonable Assurance Engagement
We will:
Complete the reasonable assurance engagement in accordance with the Standard on Assurance Engagements (SAE) 3100, Compliance Engagements
Assess {the PTE’s} compliance with NZQA reporting requirements.
Assess {the PTE’s} procedures for managing student fees to ensure compliance with the Trust Deed and with NZQA’s Student Fee Protection Rules.
Test the effectiveness of these procedures and perform such other procedures as are considered necessary in the circumstances.
Because of the inherent limitations of an audit, together with the inherent limitations of internal control, there is an unavoidable risk that some material misstatements may not be detected, even though the audit is properly planned and performed in accordance with SAE 3100.
In making our risk assessments, we will consider relevant internal control procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. However, we will communicate to you, in writing, about any significant deficiencies in internal control relevant to the audit of the PTE and trust account that we have identified during the audit.
The audit will be conducted on the basis that the governing body has knowledge of and responsibility for compliance with the Trust Deed and NZQA Student Fee Protection Rules.
As owners, you will provide:
A copy of the Deed signed by both the PTE and Trustee
A copy of the latest completed Student Details Report
A copy of the latest completed PTE Quarterly Attestation Certificate, and Annual Return
Access to all student acknowledgment forms, and schedules showing draw down details where applicable
Access to all information of which management and owners are aware that is relevant to the on going compliance with the Trust Deed and NZQA Student Fee Protection Rules
Any additional information which we may request for the purpose of the audit.
Unrestricted access to persons within the entity from whom we determine it necessary to obtain audit evidence
{Insert any additional engagement terms agreed between the PTE and the Auditor.}
As part of the audit process, we will request from the governing body, written confirmation concerning representations made to us in connection with the audit.
Should we be required to do so, we will make available to the Trustee and NZQA all information made available to the auditor by the {PTE}.
In return for providing the services, {PTE} will be responsible for the payment of the agreed fee.
Could you please indicate your acceptance of the terms of engagement set out above by counter-signing this letter and returning a copy to us for our records.
Yours sincerely
{Name of auditor}
{Name of audit firm}
{insert name of PTE} agrees to the above terms and conditions.
Signature: …………………………….
Date:……………………………….