CPAA Insight: The Stance on Engagement Letters
CPAA stance on engagement letters
It is recommended practice to have a letter of engagement in place before any work is done for a new client. The CPAA has not mandated this but if practices are to achieve Quality Assurance status then this document must form part of the file review.
Two important paragraphs to be included cover Money Laundering Regulations and Client Complaints procedures. The latter must include a statement to the effect that if the client is not satisfied that their complaint has been dealt with appropriately then they have a right to approach the CPAA.
For members undertaking limited company accounts preparation it is also advisable to have a Letter of Representation drawn up and signed by a director. This will help to avoid any claims that the work was not carried out to the relevant Accounting Standards.
Templates for current engagement letters and letters of representation are available from the CPAA Head Office, Onward Buildings, 207 Deansgate, Manchester M3 3NW or by phoning 0161 834 5998.
A set of auto-complete lead schedules suitable for use on Excel spreadsheets is also available.
For more information, or to find out more about CPAA membership benefits go to www.cpaauk.org