What is an Engagement Letter?

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The engagement letter, offered by your CPA at the start of your working relationship promotes effective communication between the professional advisor and you. Better communication, goodwill and understanding will be promoted through the engagement letter.

In the written professional agreement, the CPA agrees to comply with professional and ethical standards and you, the client, agree to cooperate, render assistance, and to compensate the CPA. The Engagement Letter clarifies these mutual obligations; it insures that the CPA and staff understand the type of engagement to be performed and the expectations they agree to fulfill. It is designed to limit any misunderstanding of the services to be provided.

Read the Engagement Letter carefully. Be sure you understand the services described, the fee arrangements, and any other significant provisions.

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