Engagement Letters: Are You and Your Clients on the Same Page?

Source: CPA Trendlines

The following includes excerpts, reproduced with permission, from an article by Steve Erickson.

Tips for improving the engagement letter process:

1. Have face-to-face meetings with clients to discuss the terms of the engagement and go through the engagement letter.
2. Have clients initial important clauses to make sure they understand their responsibilities.
3. Provide, in the letter, for change orders in the event the scope of work changes during the engagement.
4. Include a “stop work” clause providing that work will cease if payment terms aren't followed.
5. Attach examples of work that are within and outside the scope of the engagement.
6. Attach a sample change order.
7. Attach a copy of your firm's credit policy.

For the complete article, read “Seven Tweaks for Your Engagement Letters.”

From CPA Trendlines, http://cpatrendlines.com, January 28, 2012.