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Accountant Letter of Engagement

This Letter of Engagement can be used by an accountant to sign up a client.


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Document Overview

What Are Accountant Letters of Engagement?

Accountant letter of engagements are formal agreements between an accountant or accounting firm and their client. An accountant letter of engagement sets out the roles, duties and responsibilities of both the accountant and client when engaging in accountant services. These letters serve as a legal contract that promotes transparency within the client-accountant relationship. 

Key Components This Accountant Letter of Engagement Will Cover

Identification of Parties

The accountant letter of engagement will clearly identify both parties involved within the relationship, making it easy and clear to read who is involved in the transaction. 

Scope of Services

The accountant's letters of engagement also define the scope of services the account will and can provide. This serves as an important aspect of the letter of engagement as it defines what services the accountant is expected to perform, but also defines the boundaries where the accountant may not act. 

Responsibilities of the Client and Accountant

The accountant letter of engagement will not just define the scope of services for the client, but also outline the responsibilities of the accountant, alongside the client. This can involve areas such as privacy and confidentiality, time duration of tasks and methods to communicate.

Fees and Payments

The accountant's letter of engagement will clearly state the fees and payment methods available the client may make. 

Establishing Client-Professional Relationships

Letters of engagement are important in an accounting context because they create a level of transparency and certainty, both for the client in terms of the service they are receiving and the cost of it, and for the accountant or firm in terms of the service they will be expected to provide. Having an accountant letter of engagement establishes the client-professional relationship between the accountant and client.

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