I'm concerned at the length of my letters. I don't find the ICAEW standards very easy to work with and the ACCA model letters are hopeless.
I'd quite like to save a few trees, but would like to keep the text at a sensible size, whilst being as comprehensive as possible.
Any thoughts?
Replies (15)
Please login or register to join the discussion.
Have you seen the short version?
See the question:
https://www.accountingweb.co.uk/anyanswers/engagement-letter/510480
HTH
P
Ours is one page long
We list the services agreed, and the relevant paragraphs in our T&C, and then attach the T&C to the LoE.
Obviously, the T&C covers everything that may be needed.
@Euan
Our T&C is 1 page, duplex (fairly small print). We have a large print version should anyone ask for it, which is 4 pages (duplex) ... but we have never been asked!
One page
Very brief outline of what I do, what the client should do, the fee, complaints procedure and PI insurer.
This was accepted as adequate on a very recent ICAEW practice assurance visit.
As long as it needs to be
The ACCA one is good enough as a base but I tend to do a summary on first page of important bits. No need to worry about trees if you email it and get them to sign & return the last page.
Fewer trees
The ACCA one is good enough as a base but I tend to do a summary on first page of important bits. No need to worry about trees if you email it and get them to sign & return the last page.
Or even fewer trees if you get them to add an electronic signature using Echosign (other electronic signature software is available)
@yorky100
You say you include details of your PI insurer. My PI insurer is Lockton and they always say you should not disclose details of your PI insurance to clients, presumably as it will encourage clients to make a claim.
PII
According to all of the professional bodies, under the requirements of the Provision of Services Regulations you now have to declare your PII insurer.
Short
Keep it as short as possible - remember most clients have the attention span of a goldfish.
As for T&C remember these will be a basis for any dispute, so whilst they need to cover all the relevant points.
However be careful. Don't put in them things which could later come back and bite you. The less "promises" you make, the less chance there is of it being held against you at some later date.
Are scans OK?
Sometimes I get clients, particularly overseas ones, to sign the engagement letter and e-mail a scanned copy back to me. Is that OK or does that fall foul of some regulation or other too?
Chris
Scope
Essential to cover the scope of the services to be provided - but even more important, to identify what you will not be doing
Chris
As mentioned above, ACCA requires you get a wet signature, so client sends back the signature page. Not sure if ICAEW same. To be honest, as also mentioned, I will move to electronic approval, perhaps via online facility, and the ACCA can catch up with the 21st century at their leisure.
I have no problem using trees
They are a sustainable recyclable resource. I use a separate one for each major service as it was too boring tailoring them. They spew straight out of IRIS Automail, vary between 5 to 7 pages, plus T&C's which is 10 pages. They are in Arial 12 point font, these old eyes of mine ain't what as good as they once were!
Don't care whether the client reads and understands them, as long as they sign them. I use ACCA doctored slightly, mainly on the AML part of the T&C's where I spell out exactly what money laundering is; the law in relation to money laundering; and my legal obligations under the regulations. I also emphasise this in my initial meeting ...