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Who Prepares the Letter of Engagement?

What Is an Engagement Letter? An engagement letter is a written agreement that describes the business relationship to be entered into by a client and a company. The letter details the scope of the agreement, its terms, and costs. The purpose of an engagement letter is to set expectations on both sides of the agreement.

What is in an engagement letter?

Engagement letters may well be the best way to prevent client lawsuits. But too many accountants fail to use them as a matter of course. Are you one of them? Just as vaccines are a strong defense against disease, engagement letters are an excellent way to inoculate your business against consumer lawsuits.

How Often Should Engagement Letters Be Updated?

An engagement letter is an agreement for a services firm to provide services to a client. The letter is essentially an abbreviated contract that defines the services to be performed and the amount of compensation to be paid.

Is an engagement letter the same as a contract?

One party is the company that supplies a product or service, and the other party is the client who receives the product. Representatives from both sides sign the engagement letter, which makes it a written record thats legally binding.

When should the engagement letter be sent?

The engagement letter should be sent to all new clients soon after the appointment as an auditor and, in any event, before the commencement of the first audit engagement.

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