Engagement letter

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mc25
mc25 Registered Posts: 232 Dedicated contributor 🦉
in General accounting discussion
Just to clarify with those who have experience on this really. If you have a client who you do only book keeping for and they have an accountant who sorts out their year end accounts do we still have to issue them with letter of Engagements?

Thanks

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  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
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    I got no experience with it, but I don't think you have to. I would advice to use it anyways, or maybe in a shorter/ slightly different form, so it can act as a contract between you and the company and you still got it on paper!

    However, that's just my opinion, as I said, I don't have experience with it.

    Cheers,
    Rinske
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    do we still have to issue them with letter of Engagements?

    "have to" is 'only' an issue of best practice anyway.

    It's advisable to have a LoE for all clients, to avoid any doubt in what you are and are not doing for them.
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    Hmm, I think it is a little more than 'best practice'..

    "252.1 Members in practice are expected to agree an engagement letter for each client. The purpose
    of such a letter is to provide written confirmation of the work to be undertaken and the extent of
    the member’s responsibilities.    "
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    deanshepherd wrote: »
    Hmm, I think it is a little more than 'best practice'..

    "252.1 Members in practice are expected to agree an engagement letter for each client. The purpose
    of such a letter is to provide written confirmation of the work to be undertaken and the extent of
    the member’s responsibilities.    "

    Whoops. :o
    Too much to do today, don't know what I was thinking!

    We're in the process of updating all of ours, I HATE doing them but they are a good job done.
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
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    yes agreed last time we had an inspection we were told we HAD to have LOE's for ALL live and future clients
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    A-Vic wrote: »
    yes agreed last time we had an inspection we were told we HAD to have LOE's for ALL live and future clients

    As an aside, do AAT do inspections? I know ICAEW do practice assurance visits etc.

    We've been using Feb and Mar as a quiet period to update all our admin stuff, its SUCH a big job! It'll be great when all the systems are in place but getting them there is a mission.
  • mc25
    mc25 Registered Posts: 232 Dedicated contributor 🦉
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    Thanks

    Thank you all for your replies.
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
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    Monsoon wrote: »
    As an aside, do AAT do inspections? I know ICAEW do practice assurance visit

    Yeah thats what we had a couple of years ago. Whatever association your with i thought it came under the money laundering laws that you had a have a LOE

    Where doing archiving at the momment a good chance to go through the files and get them upto date.
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    The link just goes to an advert. Can't see any actual template on there.
  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
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    deanshepherd wrote: »
    The link just goes to an advert. Can't see any actual template on there.
    I think you need to pay to have access to that part of the site...
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
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    the unit 32 ozborne book has a copy of one in the back
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    help4u wrote: »
    Dean, if you don't want to join, send me an e-mail I will send you a complimentary template that you can use.

    That would be great - thanks.

    What's your email address?
  • mc25
    mc25 Registered Posts: 232 Dedicated contributor 🦉
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    help4u, if you dont mind can you send me a copy too. will pm you my add
  • mc25
    mc25 Registered Posts: 232 Dedicated contributor 🦉
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    interested

    help4u, if you dont mind can you send me a copy too. will pm you my add
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    I never got a reply..

    :(

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