Engagement Letter Do’s and Don’ts

Engagement letters help improve communication with clients, document engagements, and protect you from litigation. By clearly defining an engagement’s scope and services, you can better avoid misunderstandings. CAMICOEngagementLetter

What you should do:

  • State the purpose of the engagement
  • Define the scope of the engagement (specifically what you will and won’t do)
  • Specify known negative conditions or adverse situations

Definitions of terms relevant to attestation engagements

Assertion. Any declaration or set of declarations about whether the subject matter is in accordance with (or based on) the criteria.

Criteria. The benchmarks used to measure or evaluate the subject matter.

Engaging party. The party(ies) that engages the practitioner to perform the attestation engagement.

General use. Refers to prospective financial information for use by persons with whom the responsible party is not negotiating directly.

Pages

Latest Articles

  • 16 Oct

    Disengaging to benefit your firm and the client

    Most CPAs — even those highly skilled at screening and bringing in new clients — will periodically encounter situations and client relationships that call for disengaging. While the subject of disengaging is typically thought of as (at best) unpleasant, disengaging can be a practice ma... read more

  • 11 Sep

    Report Potential Claims and Concerns as Early as Possible

    Contact your professional liability and employment practices liability insurance carrier or agent as soon as an issue comes up. Adverse consequences often come from CPAs taking action before consulting their risk advisers. Better safe than sorry.

    Here are some reasons why... read more

  • 14 Aug

    Cyber Claims Trends That Accountants Should Know

    Cyber claims trends have increased over the past year. CAMICO Mutual Insurance provides critical cyber coverage to accountants for cyber risks through an arrangement with NAS Insurance and explains the update on current cyber claims trends below.


    read more

  • 09 Aug

    Protect Your Clients and Your Firm from Hackers

    With cyber-attacks and data breach incidents growing in frequency, it is critical to ensure that your firm has taken all reasonable measures to protect your clients and the firm from hackers.

    read more