Letter of Termination of Audit Services

I regret to inform you on behalf of company management that your audit services are being terminated from next month. This decision has not been taken at once. You were warned several times prior to this termination letter. On [date], in your personal meeting with our board of directors, you were advised to show improvement in your work. Your failure in meeting desired standards of the company has compelled us to make such a decision.

Several factors have contributed to your termination. You prepared the annual audit report of 202X after collecting, sorting, and analyzing the data on a spreadsheet. It was full of errors which made the management unhappy.

Secondly, you were unable to manage and examine the big accounts system of the company and failed in making it at par with the financial control system. For your information, this was your most important duty and you were unable to perform it.

Advertisement

Thirdly, your risk assessment turned out to be wrong. You predicted that there is a 4 percent financial risk associated with our organization. Whereas, the actual risk turned out to be 8 percent and it proved your inefficiency. We were about to collapse due to the wrong risk assessment. Similarly, your final financial statement was wrong since it was based on erroneous data and wrong strategies.

You are hereby informed that the board of directors has carefully made this decision because the company relies heavily on its auditor and there is no space for any mistake in this department. Your services have been terminated owing to your inefficiency and no element of favoritism was taken into consideration while making the decision.

You rendered your services for the company and we are grateful to you. Unfortunately, your performance has not been up to the mark due to which we are terminating your services immediately.

We hope you will learn a lesson from your mistakes and not repeat these again. Your salary for the current month will be credited to your account within a couple of days. You can contact with HR office for arrears.

We wish you all the best of luck for your professional life ahead.

(Sample -2)

Subject: Termination of audit services for [XYZ]

Dear Anderson,

During employment there comes a certain point when a company no longer needs the services of an employee. Such decisions are always hard to make. Today I am writing this letter on behalf of the management that your audit services are being terminated with immediate effect.

Your inability in meeting the desired standards of our company has compelled the board of directors to make this hard decision. Despite several verbal warnings, you failed to show improvement in your performance. Honestly speaking, your failure has paved the way for your termination.

Your poor performance has proved to us that you are lacking the expertise to be a perfect auditor.

Your termination decision was taken under certain circumstances and those were beyond our control. Your major duty was to prepare the annual financial report for fiscal year 202X and present it to the owners.

Upon careful examination, it was revealed that you made blunders during its preparation. It came to our knowledge that the account statements of major stakeholders were not prepared according to the company’s act. Secondly, you failed to assess the associated financial risk. Consequently, we were on the verge of collapse because our assets were not protected due to your sheer negligence.

Dear, your key responsibility was to give us a true and clear picture of company finance and business. Unfortunately, you failed to do so which is not tolerable at all. The fate of any company depends upon its accurate audit report but you made us vulnerable to huge losses.

Keeping in view the whole scenario, the company has decided to get rid of you and your poor quality services. It is hereby notified that you will no longer be a part of this company.

Your compensatory payment is also attached to this letter. You can contact the HR office in case of any queries.

We wish you all the best of luck for your future.

Letter of Termination of Audit Services

Related posts