Engagement Letters for CPA's & Accountants
Professional Liability Insurance providers and legal experts strongly support the regular use of engagement letters as part of your accounting practice. There is evidence that a significant number of claims can be avoided or favorably defended if you document the clear terms of your engagement in an effective engagement letter prior to the start of the engagement.
Sponsored by North American Professional Liability Insurance Agency, LLC (NAPLIA), one of the largest independent agents in the country, this website provides you sample engagement letters and related resources.
The content of this site would not be possible without the contribution and support of the law firm of Lapping & Picardi
Engagement Letter Articles & Related Resources
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IRS 2011 Preparer Letter and Visitation Program
During the 2011 filing season, IRS representatives will visit approximately 2,500 tax return preparers who received letters to further discuss their responsibilities as a return preparer and to verify their compliance with existing return preparer requirements. Learn the facts about this program and your exposure (and response) as a preparer.
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Regulation 7216 and Client Consent Requirements
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Social Media for Professionals - Managing your Risk
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Free Risk Management Tips...
Education is your best defense in guarding against professional liability claims. Sign up now to receive Free Risk Management Tips.
Benefits of Engagement Letters
- Identify terms, conditions, services, and fees with your client prior to the engagement, while you are on your best terms.
- Clearly identify fees to avoid future fee disputes.
- Marketing your services by identifying those services which you are not providing to a client, but could.
- Include favorable Alternative Dispute Resolution terms in the event of a disagreement.
- Inform clients, through a disengagement letter, when you are no longer representing them.
- Mitigate potential "failure to detect" claims by identifying the exact services you are providing and the intent of such services.
