What is an Engagement Letter?
An engagement letter establishes an understanding, in writing, between the client and the accountant regarding the services the CPA will provide. The engagement letter describes, in detail, the services to be performed, the fee, and other terms and conditions of the engagement. It also provides the staff of the accounting firm with a reference to the type of engagement to be performed, the date and period covered by the financial statements, and the nature of the report expected to be prepared.
