[Your Firm’s Letterhead]
[Date]
[Client’s Name] [Client’s Address] [City, Province, Postal Code]
Dear [Client’s Name],
Re: Engagement Letter for Compilation Services
We are pleased to confirm our understanding of the services we are to provide for [Client’s Name] (the “Client”) for the period ending [End Date].
Scope of Services: Our firm, [Your Firm’s Name], will perform compilation services for the financial statements of the Client. Compilation services involve presenting, in the form of financial statements, information that is the representation of management (owners). We will not audit or review the financial statements and, accordingly, will not express any assurance on them.
Responsibilities of the Accountant: In conducting this engagement, we will comply with International Standard on Compilation Engagements (ISCE) 4410, “Compilation Engagements.” Our responsibilities will include compiling the financial statements based on information provided by the Client. We will not verify the accuracy or completeness of the information provided. Our engagement cannot be relied upon to disclose errors, fraud, or illegal acts.
Responsibilities of Management: Management is responsible for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting framework and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements.
Our engagement does not relieve management of its responsibilities.
Our report will be limited to presenting the compiled financial statements and will not include any assurance on them.
Ownership of Documents: The Client acknowledges that any documents provided to us during the course of the engagement are the property of the Client. We will return all original documents provided by the Client promptly upon completion of our services.
Engagement Fees: Our fees for the compilation services will be billed based on the time and level of expertise required for the engagement. We estimate our fees to be [Fee Amount], exclusive of VAT, which will be billed upon completion of the engagement. Any additional services requested by the Client will be billed separately at our standard rates.
Client Acceptance: Please confirm your acceptance of the terms and conditions outlined in this engagement letter by signing and returning the enclosed copy. If you have any questions or require further clarification, please do not hesitate to contact us.
We appreciate the opportunity to serve as your accounting firm and look forward to working with you.
Yours sincerely,
[Your Name] [Your Position] [Your Firm’s Name]
I/We acknowledge receipt of and agree to the terms outlined in this engagement letter.
[Client’s Signature] [Date]