These were actual responses given to questions on the MBA exam:
Q: How are auditors engaged?
A: The man buys the lady a ring and asks her to marry him. Sometimes he has to get her father’s permission first.
Q: What is an engagement letter?
A: When you propose by mail, but my father is a lawyer, and he told me never to put that kind of stuff in writing.
Hopefully this scholar doesn’t work for you.
The engagement letter is the guiding document that details the scope of work, deadlines, internal and external support requirements and fee arrangement. It is the foundation document in the firm / client relationship.
Get it Right
Done right, the engagement letter is a crucial risk management tool.
CPAs have started to take on more roles in order to stay competitive, and even a seemingly simple engagement can end up being complicated if it turns out not everyone is on the same page. Having a specific, agreed upon engagement letter will ensure that both you and the client are clear on the work being done, which will help you if there are any questions or disagreements as your work progresses or is completed.
To learn more about what Amelio can do for your Engagement Letter Generation Process, please take a look our recent webinar.