Important note to user

This document should be edited to suit your practice’s needs. The Certified Public Accountants Association accepts no liability for loss or damages caused by using this template. The Certified Public Accountants Association retains ownership of this document and its contents, members of the Association are given permission to use this document within their practice and cannot resell or distribute it without the express written permission of the Association. Members are advised to seek appropriate legal advice if they are unsure on the suitability of this document. 

 

Please note that there are several references to other policies referenced within this document which you should have within your practice.

 

NB:

The following information must be supplied to clients (as required by the Provision of Services Regulations SI 2009/2999). At least some of the information can usefully be provided on your letterhead, but you can include the information on your website. Amend the table below to note where you have disclosed this information to clients or potential clients, if this is different to the location listed. Items market with engagement letter in the table below are included as prompts in the template letter that follows.

 

Information required	How communicated (eg engagement letter/letterhead/website etc – the expected location is included below, but amend if different)
Name of firm	Letterhead
Legal form (eg company/LLP)	Engagement letter
Postal address	Letterhead
Telephone and fax (if available)	Letterhead
Email	Letterhead
VAT number	Engagement letter
Professional Indemnity Insurer’s name, contact details and geographic scope of coverage.	Engagement letter
That the firm is subject to the IESBA Code of Ethics	Engagement letter
Actual fees or the way in which fees are determined	Engagement letter
Terms of business (if the firm has such terms)	Website

 

 

--------------------------------------------------TEMPLATE BELOW------------------------------------------------

 

 

[Name]

[HomeAddress]

 

[Current Date]

 

Subject: Engagement of [Name] by [FirmName]

 

Dear [PrimaryContact]

 

This letter of engagement sets out the basis on which we act for you. It establishes key terms which form the basis for the work we will undertake for you. You should read it carefully, sign and return it to us. If you have any questions about any part of this letter, please contact us as soon as possible. We will be unable to undertake any work for you until we have received a signed copy of this letter.

 

From time to time, we may update this letter of engagement. This includes if there is any change to the nature of our engagement, including the provision of new services. If we update this letter of engagement, we will issue a new copy to you for signing. If you are unable to sign this reissued letter of engagement, we will be unable to continue our engagement.

 

The terms within this letter take precedence over any other contract or terms related to our engagement.

 

Service to be offered

 

Under this engagement [FirmName] will undertake the following work for [Name]

 

[Services]

 

[FeeSummary]

 

Should you require any additional services we would be happy to discuss your needs. There may be additional charges, or we may need to refer you to another professional. If we accept any additional work, we will have to reissue this letter of engagement or an addendum to this letter, which should be read in conjunction with this letter.

 

We aim to ensure all our work is completed to agreed times and deadlines. We take pride in ensuring our work is completed to a high professional standard. However, the accuracy, completeness and timeliness of our work will depend upon information you provide us. Failure to provide complete and accurate information in a timely manner when requested may result in deficiencies in our work. Where we are aware, we will notify you of these deficiencies and reserve the right not to submit work to HMRC, Companies House or other authorities on the basis that we feel the work is deficient. We accept no liability for deficiencies caused by your failure to provide complete, accurate and timely information as requested. You will still be liable for any applicable fees should deficiencies be found that are a result of your failure to provide complete, accurate and timely information.

 

Applicable Law

This agreement is governed by, and construed in accordance with, the law of [Country]. In the event of a dispute or disagreement the courts in this jurisdiction will have exclusive jurisdiction.

 

Anti-Money Laundering and Counter Terrorist Financing

[FirmName] is regulated under the Money Laundering Regulations by [ProffessionalBody]

 

We would like to draw your attention to our obligations to conduct Client Due Diligence (CDD). Before we can accept this engagement, you will need to provide suitable evidence of your identity and address and any other information that we may determine is needed to meet our CDD obligations.  If you are an incorporated entity we will need certain of these documents for the beneficial owners (broadly those who own more than 25% of the business or otherwise control it). We will let you know exactly what we need as this may vary in individual circumstances.

 

We cannot start any work under this agreement until all our CDD has been completed. We accept no responsibility for losses incurred as a result of our inability to act while conducting CDD.

 

Data Protection

Our practice is registered with the Information Commissioner’s Officer under registration number [ICORegistrationNumber – please add manually]

 

Our privacy policy and data protection policy can be found alongside this Letter of Engagement, and you can request a copy of our data protection policy at any time.

 

Please note that we will retain all records for a period of six years, though we advise you retain copies indefinitely.

 

Professional Standards

We are members of the Certified Public Accountants Association (CPAA). The CPAA requires us to be bound by their Rules and the International Ethics Standard Board for Accountants’ Code of Ethics.

 

Our membership of the CPAA requires us to complete Continued Professional Development each year and to hold valid professional indemnity insurance. More information on the CPAA can be found on their website www.cpaa.co.uk.

 

Conflicts of interest

We will inform you if we become aware of any conflict of interest in our relationship with you, or in our relationship with you and another client, unless confidentiality requirements prohibit this. We will seek to manage such conflicts  where possible, by putting in place appropriate safeguards, but in some cases we may need to cease acting for you if this is not possible.

 

Professional Indemnity Insurance

Our professional indemnity insurer is [Insert insurance provider here]  The territorial coverage is United Kingdom

 

Raising issues

If you are unhappy with any part of the service, we have provided you, please contact us [PrimaryOfficer]to informally discuss the issue. We find that most issues can be resolved informally.

 

Should you wish to raise a formal complaint about us with the CPAA please email complaints@cpaa.co.uk. You should provide details of your complaint and any evidence. Please note that CPAA cannot investigate fee disputes and cannot award costs or compensation. Should you wish to obtain costs or compensation for losses you must pursue the matter through the applicable courts.

 

Termination of the engagement

You may terminate this engagement at any time by providing at least ten working days’ notice.

 

If you require us to transfer your records to a new accountant, please provide us with their details. If you owe us fees, we will still normally release your records, though we will notify your new accountant of this in our response to their professional enquiry letter. We reserve the right to pursue you through the courts for unpaid fees.

 

If we decide to terminate this agreement, we will provide written notice of this to you. We aim, but cannot guarantee, to give you at least twenty working days’ notice.

 

[If your practice is a limited company or limited liability partnership include the below]

About our practice

We are registered in [Country] under company number [Add firm reg number] The following persons are directors/partners [detail all directors/partners]

 

Authority to act

By signing and returning this agreement you agree that you have authority to enter into this agreement. If you represent an incorporate entity you confirm that you hold authority to bind that entity by the terms within this letter.

 

 

 

Consumer rights [relevant only to clients who are consumers ie an individual acting for purposes which are wholly or mainly outside the individual’s trade, business, craft or profession, eg personal tax where the contract is agreed to off-site or at the client’s premises, eg by video or telephone call or a meeting at the client’s home or workplace.]

 

Right to cancel

You have the right to cancel this contract within 14 days without giving any reason.

The cancellation period will expire after 14 days from the day of the conclusion of the contract (e.g. on signing of the engagement letter).

 

To exercise the right to cancel you must inform us of your decision to cancel this contract by a clear statement, such as an email [insert email address] or letter.

 

To meet the cancellation deadline it is sufficient for you to send your communication concerning your exercise of the right to cancel before the cancellation period has expired.

 

We will not commence work on the matters included in this engagement letter until the expiry of the 14 day cancellation period unless you specifically request us to do so. You may do this by emailing the text below:

 

• I instruct you to begin providing the services detailed in this engagement letter before the expiry of the cancellation period*

 

Effects of cancellation

If you cancel this contract we will reimburse to you any payments received from you. We will make reimbursement without undue delay and not later than 14 days after the day on which we were informed about your decision to cancel this contract. We will make the reimbursement in the same means of payment as you used for the inititial transaction unless you have expressly agreed otherwise, in any event you will not incur any fees as a result of the reimbursement.

 

*If you request us to begin the performance of services during the cancellation period you shall pay us an amount which is in proportion to what has been performed until you have communicated to us your cancellation from this contract, in comparison with the full coverage of the contract.

 

Disclaimer: This template is provided for general guidance only and does not constitute legal, regulatory, or professional advice. Users should tailor its content to their own firm’s practices and procedures, and are strongly encouraged to consult qualified legal and compliance professionals to ensure full compliance with applicable laws, regulations, and professional standards.