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Why do we need to sign an Engagement Letter:

An engagement letter:

  • Defines the services the accountant is being engaged to perform;
  • Identifies engagement responsibilities of both the accountant and the client;
  • Establishes responsibility and authority to avoid potentially severe penalties.
  • Explains fees, billing, and payment terms; and
  • Assures the client that additional services will not be initiated without advance approval
  • Engagement letters will be required of all clients.
  • Required by insurance carrier.

It explains the scope of the engagement, any agreed upon limitations, client responsibilities, engagement staffing and time considerations, billing and payment terms, and other relevant matters to the project.


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