Engagement Documentation
A well-drafted engagement letter provides clarity about what is to be done and, equally importantly, what will not be done. We can help you to produce engagement letter templates for routine assignments, and tailored wordings for specialist work.
Engagement letters are sometimes seen as tiresome and unfriendly documents - an obstacle to getting on with the work which is to be carried out. Yet, if properly drafted, they ensure that all parties are clear on what has been agreed. If you ever face a potential claim, your engagement letter will prove to be your best friend, and the first document which your professional indemnity insurers will ask to see.
It is highly advisable for the terms governing any significant piece of work to be recorded in writing. In some cases - for example, audits carried out under the International Standards on Auditing, this is a requirement.
The following engagement-specific matters should be covered in the engagement letter:
the purpose of the engagement;
the specific tasks to be undertaken;
tasks which will not be performed, or any scope restrictions;
the form of any report, its addressee(s) and any other recipient(s);
any tasks to be undertaken by other parties;
the information and assumptions upon which the work is to be based;
any updating required for subsequent information (or the fact that no such updating will take place); and
details of any limitation or disclaimer of liability.
Professional bodies and other providers issue large quantities of guidance and templates to assist in the drafting of suitable engagement documentation. We can help you to ensure that the wordings you put in place with your clients are effective, whilst being concise and easy to understand.