Free Audit Agreement Template

Fully editable with standard terms and clauses. Send and e-sign it online.

Free Audit Agreement Template

Fully editable with standard terms and clauses. Send and e-sign it online.

Template

Audit Agreement

/5 - votes
Downloaded 9,153 times
Use template
Legally vetted
Track opens & views

Audit Agreement

Auditor
First Name
Last Name
Acme LLC.
Client
First Name
Last Name
Corporation Corp.

THIS AUDITING SERVICES AGREEMENT (the "Agreement") is made effective as of [DATE BOTH PARTIES SIGN] (the "Effective Date"), by and between: (1) Acme LLC (hereinafter the "Auditor"), located at [COMPANY ADDRESS] and (2) Client (hereinafter the "Client"), located at [CLIENT ADDRESS] (collectively referred to herein as the "Parties", and individually as a "Party"). The Parties agree to the following terms of services.


RECITALS


WHEREAS, Auditor possesses professional expertise in the field of auditing services; and

WHEREAS, Client desires to engage Auditor and Auditor accepts the engagement to perform certain auditing services (collectively the "Services") for Client in accordance with the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, Auditor and Client agree as follows:


TERMS OF AGREEMENT

1. RETENTION OF AUDITOR.

Client hereby retains Auditor and Auditor hereby agrees to render the Services to Client upon the terms and conditions as set forth herein.


2. DESCRIPTION OF THE SERVICES.

Auditor shall provide Client the following services (collectively the "Services"):

2.1 Client hereby retains Auditor and Auditor hereby agrees to render the Services to Client upon the terms and conditions as set forth herein.

2.2 Auditor will deliver to Client the following: [AUDITING SERVICES DESCRIPTION]

2.3 Auditor will immediately notify Client of any significant and/or reportable conditions noted during the course of the audit.

2.4 Additional services may be discussed by the Parties with additional fees to be agreed to by the Parties hereto in writing.

2.5 Auditor is providing the aforementioned Services "as is" without warranty or condition of any kind. Auditor hereby disclaims all warranties and conditions with regard to the Services rendered by Auditor, including all implied warranties or conditions of merchantability and fitness for a particular purpose. Auditor does not guarantee any minimum number of views and/or procurement of followers on any social media platform to Client.


3. TERM/SCHEDULING.

The Parties agree that Auditor shall begin rendering the Services as of the Effective Date of this Agreement and shall complete the Services as defined herein by [PROJECT END DATE]. Either Party may terminate this Agreement upon ten (10) days prior written notice. In the event this Agreement is terminated before Auditor renders the entirety of the Services, Auditor shall be compensated for all Services rendered as of the effective date of termination.


4. COMPENSATION OF AUDITOR.

Client shall pay Auditor as follows: [PAYMENT DETAILS].

4.1 Additional Services. If, and to the extent that, Client requests Auditor to render services on behalf of Client other than those required to be rendered under this Agreement, such additional services shall be compensated separately at a rate as agreed to by the Parties in a new Statement of Work signed by both of the Parties hereto. The fee for any such additional services shall be added to Client's subsequent invoice as submitted by Auditor to Client.


5. OWNERSHIP RIGHTS.

Client will own all of its proprietary information as included in the Services. All Services provided by Auditor developed for or specifically relating to Client's proprietary information of any kind, and reports and notes prepared by Auditor, will be "works for hire" under any and all applicable United States and/or Canadian copyright laws, and therefore the property of Client. Such work may not be used by Auditor for any other purpose except for the benefit of Client. Any and all such property shall be delivered to Client on request. Upon request of Client, Auditor shall sign all documents necessary to confirm or perfect the exclusive ownership interests of Client.


6. AUDITOR OWNERSHIP RIGHTS & GRANT OF LICENSE.

Notwithstanding any other provision of this Agreement, the Services will and/or may include some past proprietary information that Auditor has previously developed for its own use ("Auditor's Prior Proprietary Information"). Auditor expressly retains full ownership of Auditor's Prior Proprietary Information, including all associated rights to use such information. However, Auditor also grants to Client a perpetual, non-exclusive license to use Auditor's Prior Proprietary Information.


7. INDEPENDENT CONTRACTOR STATUS.

Auditor is an independent contractor with respect to its relationship to Client. Neither Auditor nor Auditor's employees are or shall be deemed for any purpose to be employees of Client. Client shall not be responsible to Auditor, Auditor's employees, or any governing body for any payroll taxes related to the performance of the Services.


8. LIMITATION OF LIABILITY.

Under no circumstances shall Auditor be liable to Client or any third party for indirect, incidental, consequential, special or exemplary damages arising from the Services herein contemplated or any provision of this Agreement, such as, but not limited to, loss of revenue or anticipated profit or lost business, costs of delay or failure of delivery, or liabilities to third-parties arising from any source. The maximum aggregate liability of Auditor to Client arising out of or in connection with this Agreement shall not exceed the amount of any fees paid by Client to Auditor for the Services described in any applicable Statement of Work. For purposes of this section, "fees" does not include any payments made by Client to thirty-party services in connection with the Services provided by Auditor.


9. INDEMNITY.

Client agrees to defend, indemnify, and hold harmless Auditor and its officers, directors, agents, affiliates, distributors, representatives, and employees from any and all third-party claims, demands, liabilities, costs and expenses, including reasonable attorneys' fees, costs and expenses resulting from Client's material breach of any duty, representation or warranty under this Agreement.


10. NO WARRANTIES AND/OR GUARANTEES.

To the maximum extent permitted by applicable law, all Services are provided "as is" without warranty or condition of any kind. Auditor hereby disclaims all warranties and conditions with regard to the Services rendered by Auditor, including all implied warranties or conditions of merchantability and fitness for a particular purpose. Auditor does not guarantee any minimum number of views and/or procurement of followers on any social media platform to Client.


11. CONFIDENTIALITY.

Neither Party hereto will at any time or in any manner, either directly or indirectly, use for the personal benefit of themselves, or divulge, disclose, or communicate in any manner any information that is proprietary to the other Party (i.e., trade secrets, know-how and confidential information). The Parties will protect such information and treat it as strictly confidential. This provision shall continue to be effective after the termination of this Agreement. Either Party may seek and obtain injunctive relief against the release or threatened release of such information in addition to any other legal remedies which may be available to a Party.


12. ASSIGNMENT.

This Agreement is not assignable, in whole or in part, by either Party without the prior written consent of the other Party. Any attempt to make such assignment shall be void.


13. ATTORNEYS' FEES.

In any legal action between the Parties concerning this Agreement, the prevailing Party shall be entitled to recover reasonable attorneys' fees and costs.


14. SEVERABILITY.

If any provision of this Agreement is held to be invalid, illegal or unenforceable, the remaining portions of this Agreement shall remain in full force and effect and construed so as to best effectuate the original intent and purpose of this Agreement.


15. GOVERNING LAW & FORUM.

This Agreement shall be construed in accordance with the laws of the United States of America, without regard to conflict of laws rules. Venue shall be in a court of competent jurisdiction in the United States of America and both Parties expressly consent to jurisdiction in such courts.


16. COMPLETE AGREEMENT & AMENDMENT.

This Agreement supersedes all prior agreements and understandings between the Parties for performance of the Services and constitutes the complete agreement and understanding between the Parties. The Parties may only amend this Agreement in a written document signed by both Parties.


IN WITNESS WHEREOF, the Parties have executed this Auditing Services Agreement as of the date first written above.

Auditor
First Name
Last Name
Acme LLC.
Client
First Name
Last Name
Corporation Corp.

Free Audit Agreement Template

Fully editable with standard terms and clauses. Send and e-sign it online.

Free Audit Agreement Template

Fully editable with standard terms and clauses. Send and e-sign it online.

Bonsai has helped create 1,023,928 documents and counting.

Trusted by 500,000+
business owners

Date: March 8th 2023


Between:

Coach:

First_name
Last_name
Acme LLC.
Client:

First_name
Last_name
Corporation Corp.

This Contract is between Client (the "Client") and Acme LLC, a California limited liability company (the "Coach").

The Contract is dated January 23, 2023.

1. WORK AND PAYMENT.

1.1 Project. The Client is hiring the Coach to develop a coaching relationship between the Client and Coach in order to cultivate the Client's personal, professional, or business goals and create a plan to achieve those goals through stimulating and creative interactions with the ultimate result of maximizing the Client's personal or professional potential.

1.2 Schedule. The Coach will begin work on February 1, 2023 and will continue until the work is completed. This Contract can be ended by either Client or Coach at any time, pursuant to the terms of Section 4, Term and Termination.

The Coach and Client will meet by video conference, 4 days per month for 2 hours.

1.3 Payment. The Client will pay the Coach an hourly rate of $150. Of this, the Client will pay the Coach $500.00 (USD) before work begins.

1.4 Expenses. The Client will reimburse the Coach's expenses. Expenses do not need to be pre-approved by the Client.

1.5 Invoices. The Coach will invoice the Client in accordance with the milestones in Section 1.3. The Client agrees to pay the amount owed within 15 days of receiving the invoice. Payment after that date will incur a late fee of 1.0% per month on the outstanding amount.

1.6 Support. The Coach will not be available by telephone, or email in between scheduled sessions.

2.DUTIES AND RESPONSIBILITIES.

- A coaching relationship is a partnership between two or more individuals or entities, like a teacher-student or coach-athlete relationship. Both the Client and Coach must uphold their obligations for the relationship to be successful.

- The Coach agrees to maintain the ethics and standards of behavior established by the International Coaching Federation (ICF).

- The Client acknowledges and agrees that coaching is a comprehensive process that may explore different areas of the Client's life, including work, finances, health, and relationships.

- The Client is responsible for implementing the insights and techniques learned from the Coach.

3. REPRESENTATIONS.

3.1 Overview. This section contains important promises between the parties.

3.2 Authority To Sign. Each party promises to the other party that it has the authority to enter into this Contract and to perform all of its obligations under this Contract.

3.3 Coach Has Right To Give Client Work Product. The Coach promises that it owns the work product, that the Coach is able to give the work product to the Client, and that no other party will claim that it owns the work product. If the Coach uses employees or subcontractors, the Coach also promises that these employees and subcontractors have signed contracts with the Coach giving the Coach any rights that the employees or subcontractors have related to the Coach's background IP and work product.

3.4 Coach Will Comply With Laws. The Coach promises that the manner it does this job, its work product, and any background IP it uses comply with applicable U.S. and foreign laws and regulations.

3.5 Work Product Does Not Infringe. The Coach promises that its work product does not and will not infringe on someone else's intellectual property rights, that the Coach has the right to let the Client use the background IP, and that this Contract does not and will not violate any contract that the Coach has entered into or will enter into with someone else.

3.7 Client-Supplied Material Does Not Infringe. If the Client provides the Coach with material to incorporate into the work product, the Client promises that this material does not infringe on someone else's intellectual property rights.

4. TERM AND TERMINATION

This Contract is ongoing until it expires or the work is completed. Either party may end this Contract for any reason by sending an email or letter to the other party, informing the recipient that the sender is ending the Contract and that the Contract will end in 7 days. The Contract officially ends once that time has passed. The party that is ending the Contract must provide notice by taking the steps explained in Section 9.4. The Coach must immediately stop working as soon as it receives this notice unless the notice says otherwise.

If either party ends this Contract before the Contract automatically ends, the Client will pay the Contractor for the work done up until when the Contract ends. The following sections don't end even after the Contract ends: 3 (Representations); 6 (Confidential Information); 7 (Limitation of Liability); 8 (Indemnity); and 9 (General).

3. INDEPENDENT CONTRACTOR.

The Client is hiring the Coach as an independent contractor. The following statements accurately reflect their relationship:

- The Coach will use its own equipment, tools, and material to do the work.

- The Client will not control how the job is performed on a day-to-day basis. Rather, the Coach is responsible for determining when, where, and how it will carry out the work.

- The Client will not provide the Coach with any training.

- The Client and the Coach do not have a partnership or employer-employee relationship.

- The Coach cannot enter into contracts, make promises, or act on behalf of the Client.

- The Coach is not entitled to the Client's benefits (e.g., group insurance, retirement benefits, retirement plans, vacation days).

- The Coach is responsible for its own taxes.

- The Client will not withhold social security and Medicare taxes or make payments for disability insurance, unemployment insurance, or workers compensation for the Coach or any of the Coach's employees or subcontractors.

6. CONFIDENTIAL INFORMATION.

6.1 Overview. This Contract imposes special restrictions on how the Client and the Coach must handle confidential information. These obligations are explained in this section.

6.2 The Client's Confidential Information. While working for the Client, the Coach may come across, or be given, Client information that is confidential. This is information like customer lists, business strategies, research & development notes, statistics about a website, and other information that is private. The Coach promises to treat this information as if it is the Coach's own confidential information. The Coach may use this information to do its job under this Contract, but not for anything else. For example, if the Client lets the Coach use a customer list to send out a newsletter, the Coach cannot use those email addresses for any other purpose. The one exception to this is if the Client gives the Coach written permission to use the information for another purpose, the Coach may use the information for that purpose, as well. When this Contract ends, the Coach must give back or destroy all confidential information, and confirm that it has done so. The Coach promises that it will not share confidential information with a third party, unless the Client gives the Coach written permission first. The Coach must continue to follow these obligations, even after the Contract ends. The Coach's responsibilities only stop if the Coach can show any of the following: (i) that the information was already public when the Coach came across it; (ii) the information became public after the Coach came across it, but not because of anything the Coach did or didn't do; (iii) the Coach already knew the information when the Coach came across it and the Coach didn't have any obligation to keep it secret; (iv) a third party provided the Coach with the information without requiring that the Coach keep it a secret; or (v) the Coach created the information on its own, without using anything belonging to the Client.

6.3 Third-Party Confidential Information. It's possible the Client and the Coach each have access to confidential information that belongs to third parties. The Client and the Coach each promise that it will not share with the other party confidential information that belongs to third parties, unless it is allowed to do so. If the Client or the Coach is allowed to share confidential information with the other party and does so, the sharing party promises to tell the other party in writing of any special restrictions regarding that information.

7. LIMITATION OF LIABILITY.

Neither party is liable for breach-of-contract damages that the breaching party could not reasonably have foreseen when it entered this Contract.

8. INDEMNITY.

8.1 Overview. This section transfers certain risks between the parties if a third party sues or goes after the Client or the Coach or both. For example, if the Client gets sued for something that the Coach did, then the Coach may promise to come to the Client's defense or to reimburse the Client for any losses.

8.2 Client Indemnity. In this Contract, the Coach agrees to indemnify the Client (and its affiliates and their directors, officers, employees, and agents) from and against all liabilities, losses, damages, and expenses (including reasonable attorneys' fees) related to a third-party claim or proceeding arising out of: (i) the work the Coach has done under this Contract; (ii) a breach by the Coach of its obligations under this Contract; or (iii) a breach by the Coach of the promises it is making in Section 3 (Representations).

8.3 Coach Indemnity. In this Contract, the Client agrees to indemnify the Coach (and its affiliates and their directors, officers, employees, and agents) from and against liabilities, losses, damages, and expenses (including reasonable attorneys' fees) related to a third-party claim or proceeding arising out of a breach by the Client of its obligations under this Contract.

9. GENERAL.

9.1 Assignment​. This Contract applies only to the Client and the Coach. Neither the Client nor the Coach can assign its rights or delegate its obligations under this Contract to a third-party (other than by will or intestate), without first receiving the other's written permission.

9.2 Arbitration. As the exclusive means of initiating adversarial proceedings to resolve any dispute arising under this Contract, a party may demand that the dispute be resolved by arbitration administered by the American Arbitration Association in accordance with its commercial arbitration rules.

9.3 Modification; Waiver. To change anything in this Contract, the Client and the Coach must agree to that change in writing and sign a document showing their contract. Neither party can waive its rights under this Contract or release the other party from its obligations under this Contract, unless the waiving party acknowledges it is doing so in writing and signs a document that says so.

9.4. Noticies.

(a) Over the course of this Contract, one party may need to send a notice to the other party. For the notice to be valid, it must be in writing and delivered in one of the following ways: personal delivery, email, or certified or registered mail (postage prepaid, return receipt requested). The notice must be delivered to the party's address listed at the end of this Contract or to another address that the party has provided in writing as an appropriate address to receive notice.

(b) The timing of when a notice is received can be very important. To avoid confusion, a valid notice is considered received as follows: (i) if delivered personally, it is considered received immediately; (ii) if delivered by email, it is considered received upon acknowledgement of receipt; (iii) if delivered by registered or certified mail (postage prepaid, return receipt requested), it is considered received upon receipt as indicated by the date on the signed receipt. If a party refuses to accept notice or if notice cannot be delivered because of a change in address for which no notice was given, then it is considered received when the notice is rejected or unable to be delivered. If the notice is received after 5:00pm on a business day at the location specified in the address for that party, or on a day that is not a business day, then the notice is considered received at 9:00am on the next business day.

9.5 Severability. This section deals with what happens if a portion of the Contract is found to be unenforceable. If that's the case, the unenforceable portion will be changed to the minimum extent necessary to make it enforceable, unless that change is not permitted by law, in which case the portion will be disregarded. If any portion of the Contract is changed or disregarded because it is unenforceable, the rest of the Contract is still enforceable.

9.6 Signatures. The Client and the Coach must sign this document using Bonsai's e-signing system. These electronic signatures count as originals for all purposes.

9.7 Governing Law. The validity, interpretation, construction and performance of this document shall be governed by the laws of the United States of America.

9.8 Entire Contract. This Contract represents the parties' final and complete understanding of this job and the subject matter discussed in this Contract. This Contract supersedes all other contracts (both written and oral) between the parties.

THE PARTIES HERETO AGREE TO THE FOREGOING AS EVIDENCED BY THEIR SIGNATURES BELOW.

Coach

First_name
Last_name
Acme LLC.
Client

First_name
Last_name
Corporation Corp.
Table of contents

Auditing is a process wherein businesses evaluate the effectiveness of internal control and management. Companies conduct audits for the following reasons:

  • Achieving business goals
  • Reporting on financial transactions
  • Preventing fraud or misappropriation of assets
  • Minimizing the cost of capital; and
  • Assessing risks and mitigating it

These audits may be carried out periodically or while incorporating technology to restructure the business to monitor the efficacy of the internal controls. An audit agreement is a type of professional service agreement stipulating the terms and conditions regarding the engagement of an auditor.

Given the gravity of the situation, it goes without saying that an audit agreement is a vital and sensitive document. It not only outlines the basic expectations from the auditor, but it also defines procedures and guidelines for handling the audit and audit engagement.

Parts of an audit agreement template

Every audit agreement must contain the following elements:

1. Introduction to an audit agreement template

Naturally, every audit agreement must begin with an introduction that highlights the names of the parties involved. It also records the date from which the audit agreement comes to effect. Some introductions may carry the period of auditor engagement or keep a flexible end date depending on the task. Additionally, since auditing is a recurring activity, the introduction may also define the frequency of the audits. Before the agreement takes place, an audit proposal is sent.

2. Legislative rules and regulations of an audit agreement template

Given that auditing is an extremely sensitive process that requires the highest standards of practice, it is essential that you abide by certain rules and regulations. Depending on the local laws and your prior experience and practice, the contract can include a standard code of conduct for you to comply with while carrying out the auditing exercise.

3. Audit planning and audit program with an audit agreement template

Auditing may mean different things for different individuals and businesses. Hence, it is crucial for the audit agreement to define the fundamental duties that the auditor needs to carry out. Thus, this section deals with the scope of the work and details the expectations from the auditor. Some companies outline a roadmap or a timeline for the auditing process.

Further, since you are an external party, you may not know the ins and outs of the business, for which the company may provide you with support staff. Utilize this portion to elaborate on the minimum requirements in terms of education, qualification, and experience for the staff that will aid the audits. The company may also delegate certain powers to you for effective staff management.

4. Evidence and reporting in the audit agreement template

Documentation and supporting the finding with relevant evidence is one of the core skills that every auditor must possess. Your audit reports must contain a summary of the work carried out, the key findings, and the final result. However, the process of submission and acceptance of this report varies from business to business. Hence, this portion of the audit agreement deals with how the auditor must create the report and support it with relevant documents.

5. Key performance indicators in the audit agreement template

Employers may dictate key performance indicators that govern the entire auditing process. Indicators like Quality Assurance, Audit Targets, Protocol, Response Times, etc. may calibrate your performance as an auditor. You can negotiate on these KPIs on the basis of their feasibility and attainability.

This concludes the main elements of an audit agreement. However, this is a very basic skeleton as businesses can modify it as per their preference. 

You may create a professional audit agreement that you can forward to the employer so that you have the upper hand when these matters are discussed. Fortunately, Bonsai contains several audit agreement templates that you can download and edit. Try it now!

Frequently Asked Questions
Questions about this template.

Get more template for your business.
Discover 1,000 additional templates to use in your industry.