ENGAGEMENT LETTER DO’S AND DON’TS
Signed engagement letters help CPA firms improve communication with clients and protect the firm from litigation as “the first line of defense.” Use the following tips to help you write more effective engagement letters.
Engagement letters should…
Additional considerations
Engagement letters should not include…
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All-encompassing language. Limit the scope of your firm’s work by avoiding superlatives and absolutes such as all, every, any, complete, confirm, totally, validate and verify.
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For tax engagements, include the full or exact name of the client, entity type, specific state name(s) and tax year(s), and purpose of the engagement.
Save yourself time and energy by using the letters specially crafted for CPA firms by CAMICO experts.
As seen above, a clear, comprehensive engagement letter is one of your best safeguards against future disputes. CAMICO offers policyholders with Professional Liability Insurance access to engagement letter review services. CAMICO's internal Loss Prevention Specialists are happy to review and comment on your drafted engagement letters – at no cost. Furthermore, CAMICO has 150+ sample engagement and disengagement letter templates available on its Members-Only Site. CAMICO experts designed these sample letters to be clear and understandable for clients, provide appropriate documentation for you, and effectively outline the scope of your work.
To learn more about CAMICO's insurance program and risk management benefits, visit www.camico.com. Need guidance with your insurance options? Email or call Alpa (Keily) Evans, CIC, CAMICO Senior Account Executive at aevans@camico.com or 800.652.1772 extn. 6720.