Date Addressee (To the Board of Director or appropriate Senior Management Person)

Dear Sir Sub: Audit for the year ending _____________ You have requested that we audit the financial statement of ________ comprising of balance sheet as at ________, and the related profit and loss account, cash flow statement and statement of changes in equity for the year then ending together with the notes forming part thereof. We are pleased to confirm our acceptance and our understanding of this engagement by means of this letter. Our audit will be made with the objective of our expressing an opinion on the financial statements. At the outset you agree that the responsibility for the preparation of financial statements including adequate disclosure is that of the management of the company. This includes the maintenance of adequate accounting records and internal controls, the selection and application of accounting policies, and the safeguarding of the assets of the company. Our responsibility is to express an opinion on these financial statements based on our audit. We will conduct our audit in accordance with International Standards on Auditing with the objective of expressing an opinion whether the financial statements conform with international accounting standards and give the information in the manner so required and respectively give a true and fair view of the state of the Corporations affairs as at ------ and of the profit, its cash flows and changes in equity for the year then ended. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Because of the test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, there is an unavoidable risk that even some material misstatements may remain undiscovered. In addition to our report on the financial statements, we expect to provide you with a separate letter concerning any material weaknesses in accounting and internal control systems, which come to our notice during the course of our normal audit work. We are not required by auditing standards to make an examination of internal controls beyond that which we make in determining the nature, extent and timing of our other audit procedures, and we have not been engaged to report on the company's internal control structure. As part of our audit process, we will request from management written confirmation concerning representations made to us in connection with the audit. As part of our audit, we are required to form our opinion on whether: a) proper books of account have been kept by the company as required;

b)

the balance sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the legal requirements and are in agreement with the books of account and are further in accordance with accounting policies consistently applied; the expenditure incurred during the year was for the purpose of the companys business; the business conducted, investments made and the expenditure incurred during the year were in accordance with the objects of the company; and

c) d)

In addition, International Standard on Auditing ISA 240, The Auditor's Responsibility to consider Fraud and Error in an Audit of Financial Statements, requires that we obtain specific written representations from management that:


it acknowledges its responsibility for the implementation and operations of accounting and internal control systems that are designed to prevent and detect fraud and error, it believes the effects of those uncorrected financial statements misstatements aggregated by us during the audit are immaterial, both individually and in the aggregate, to the financial statements taken as a whole, it has disclosed to us all significant facts relating to any frauds or suspected frauds known to management that may have affected the entity, and it has disclosed to us the results of its assessments of the risk that the financial statements may be materially misstated as a result of fraud.

These specific items will be included in our request for written confirmation concerning representations made to us in connection with the audit. In addition to the above management also is responsible for identifying and ensuring that the Company complies with laws and regulations applicable to its activities. If you require us to complete our work under this engagement contract or, any part of it, by a specific date or time, you will inform us in writing of your requirement. Whilst we will make every effort to complete such work by the date specified, you acknowledge that meeting any such requirement will rely on you providing reasonable notice of your requirement and the timely provision of such information, as we may need to complete the work concerned. We agree that we will treat as such all confidential proprietary information obtained from you and will not disclose such information to others, except to those persons engaged in providing services to you, or use such information except in connection with the performance of the services agreed to this letter. This undertaking shall not apply to any of the information that we are required by law or by the requirements of any regulators or by specific professional standards to disclose, that is in, or hereafter enters the public domain. We look forward to full cooperation with your staff and we trust that they will make available to us whatever records; documentation and other information including minutes of all management, board of directors, committees and shareholders meetings are requested in connection with our audit. We shall request sight of all documents or statements, including the Chairmans statement and directors report (if any) required to be issued with the financial statements.

Our fees, which will be billed as work progresses, are based on the time required by the individuals assigned to the engagement plus out-of-pocket expenses. Individual hourly rates vary according to the degree of responsibility involved and the experience and skill required. This letter will be effective for future years unless it is terminated, amended or superseded. Unless we hear from you to the contrary, we will assume your concurrence with the contents of this letter.

Please sign and return the attached copy to indicate that it is in accordance with your understanding of the audit arrangements.
Yours truly

For & on behalf of Bin Shabib Chartered Accountants

Accepted and agreed to by For and on behalf of Clients name

By:________________________ Title:_______________________ Date:_______________________