What is the Ssars 21 Section 70 Engagement Letter Sample?
So, what exactly are we talking about when we mention the Ssars 21 Section 70 Engagement Letter Sample? Think of an engagement letter as a contract between an accountant and their client. It outlines all the nitty-gritty details of the work the accountant will do. Specifically, Section 70 of SSARS 21 (Statements on Standards for Attestation Engagements) talks about engagement letters for reporting on financial statements. This means it's a letter that clearly states what the accountant is going to do, like reviewing or compiling financial information, and what the client can expect.
The main goal of this letter is to make sure everyone is on the same page. It prevents misunderstandings and ensures that both parties know their responsibilities. This is really important because it sets the ground rules for the whole project. Without a clear engagement letter, things can get messy, and that's definitely something we want to avoid.
Here’s a quick rundown of what usually goes into such a letter:
- The objective of the engagement (e.g., compilation, review).
- The services the accountant will provide.
- The responsibilities of both the accountant and the client.
- The period the financial statements cover.
- The form of the report the accountant will issue.
Engagement Letter for a New Client Compilation
Engagement Letter for a New Client Compilation
Date:
[Client Name]
[Client Address]
Dear [Client Name],
This letter confirms our understanding of the services we will provide to [Client Company Name] for the year ended [Year]. We will perform a compilation of the financial statements of [Client Company Name] which will include the balance sheet as of [Date] and the statements of income and cash flows for the period then ended. We will not perform an audit or a review of these financial statements, and therefore, will not express any assurance on them.
Our responsibilities will include:
- Performing the compilation in accordance with Statements on Standards for Accounting and Review Services (SSARS).
- Presenting the financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP), unless you inform us otherwise, and disclosing any material modifications that are necessary for such financial statements to be in accordance with GAAP.
Your responsibilities will include:
- Providing us with accurate and complete financial information.
- Establishing and maintaining internal controls that are adequate for the preparation of reliable financial statements.
- Providing us with access to all relevant records and personnel.
We look forward to working with you.
Sincerely,
[Your Name/Firm Name]
Engagement Letter for a Recurring Client Review
Engagement Letter for a Recurring Client Review
Date:
[Client Name]
[Client Address]
Dear [Client Name],
This letter confirms our agreement to perform a review of the financial statements of [Client Company Name] for the fiscal year ending [Year]. As you know, we have performed this service for you in previous years.
A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. We will perform our review in accordance with Statements on Standards for Accounting and Review Services (SSARS). We will issue a report on the accompanying financial statements.
Our responsibilities include performing analytical procedures and inquiries of management and others who have been furnished financial information of [Client Company Name]. We will not be required to perform audit tests or procedures to verify information provided by management or to make extensive inquiries of management, nor will we be required to perform other procedures that would be required to conduct an audit. We will not express an opinion on the financial statements.
We will rely on the information provided to us by your management. Please ensure that all relevant records and documents are made available to us promptly.
We appreciate your continued trust in our services.
Sincerely,
[Your Name/Firm Name]
Engagement Letter for a Specific Period Review
Engagement Letter for a Specific Period Review
Date:
[Client Name]
[Client Address]
Dear [Client Name],
This engagement letter outlines our agreement to conduct a review of the financial statements for [Client Company Name] for the interim period ending [Quarter End Date].
Our review will be performed in accordance with Statements on Standards for Accounting and Review Services (SSARS). The objective of a review is to provide limited assurance that there are no material modifications that need to be made to the financial statements in order for them to be in conformity with generally accepted accounting principles (GAAP). Unlike an audit, a review does not provide a basis for the expression of an opinion on the financial statements.
The scope of our review will include:
- Inquiries of appropriate personnel of [Client Company Name].
- Analytical procedures designed to identify unusual fluctuations in financial relationships.
- Obtaining representations from management.
We will require full cooperation from your staff and access to all necessary financial records and information. Please inform us of any significant changes in your business operations or accounting policies during this period.
We are pleased to assist you with this review.
Sincerely,
[Your Name/Firm Name]
Engagement Letter for a Compilation with No Assurance
Engagement Letter for a Compilation with No Assurance
Date:
[Client Name]
[Client Address]
Dear [Client Name],
This letter is to confirm our engagement to compile the financial statements of [Client Company Name] for the fiscal year ending [Year].
In performing this compilation engagement, we will prepare the financial statements from the books and records provided to us by management of [Client Company Name]. We will not perform any audit or review procedures, and accordingly, we will not express any assurance as to whether there are any material modifications that need to be made to the financial statements in order for them to be in accordance with generally accepted accounting principles (GAAP).
The following information is essential for us to complete this compilation:
- All source documents (invoices, receipts, bank statements, etc.).
- Prior year's financial statements.
- Any other relevant financial data.
We understand that management is responsible for the accuracy and completeness of the information supplied to us and for the financial statements themselves.
We look forward to completing this engagement for you.
Sincerely,
[Your Name/Firm Name]
Engagement Letter for a Compilation with Additional Services
Engagement Letter for a Compilation with Additional Services
Date:
[Client Name]
[Client Address]
Dear [Client Name],
We are pleased to confirm our engagement to perform a compilation of the financial statements for [Client Company Name] for the fiscal year ending [Year]. In addition to the compilation, we will also provide the following services:
- [List additional service, e.g., Tax preparation]
- [List additional service, e.g., Bookkeeping support]
As previously discussed, our compilation services will consist of presenting in the form of financial statements information that is the representation of management of [Client Company Name]. We will not perform an audit or a review of such financial statements and, therefore, will not express any assurance on them.
We will require your assistance in:
- Providing us with all necessary financial data in a timely manner.
- Reviewing the draft financial statements and providing feedback.
- Approving the final financial statements.
The fee for these services will be [Fee Amount], with [Payment Terms].
We value our relationship and are eager to assist you.
Sincerely,
[Your Name/Firm Name]
Engagement Letter for a Review with Agreed-Upon Procedures
Engagement Letter for a Review with Agreed-Upon Procedures
Date:
[Client Name]
[Client Address]
Dear [Client Name],
This letter outlines our agreement to perform a review of the financial statements of [Client Company Name] for the fiscal year ending [Year], and to perform certain agreed-upon procedures related to [Specific area of business].
Our review of the financial statements will be conducted in accordance with Statements on Standards for Accounting and Review Services (SSARS) and will provide limited assurance. Following the review, we will perform the agreed-upon procedures as detailed in the attached Schedule A. These procedures are limited to the specific requests of management and do not constitute an audit or a review of the financial statements as a whole.
Agreed-upon procedures to be performed:
| Procedure | Description |
|---|---|
| 1 | [Describe agreed-upon procedure 1] |
| 2 | [Describe agreed-upon procedure 2] |
You will be responsible for the accuracy and completeness of the financial information provided to us, and for ensuring that all necessary information and access are made available for both the review and the agreed-upon procedures.
We look forward to undertaking this engagement.
Sincerely,
[Your Name/Firm Name]
Engagement Letter for a Compilation with Projections
Engagement Letter for a Compilation with Projections
Date:
[Client Name]
[Client Address]
Dear [Client Name],
This letter confirms our agreement to compile the financial statements for [Client Company Name] for the fiscal year ending [Year], and to assist in the preparation of financial projections for the next [Number] years.
Our compilation of the financial statements will be performed in accordance with Statements on Standards for Accounting and Review Services (SSARS). We will present financial information that is the representation of management and will not express any assurance on these statements.
For the financial projections, we will compile them based on the assumptions provided by management. Please note that projections are forward-looking and are based on assumptions about future events that may not materialize. We will not perform any procedures to verify the reasonableness of these assumptions or to determine whether they are achievable.
Key deliverables:
- Compiled financial statements for the year ended [Year].
- Compiled financial projections for [Number] years, including assumptions.
We will require timely access to all relevant financial data and clear communication regarding your assumptions for the projections.
We are excited to help you plan for the future.
Sincerely,
[Your Name/Firm Name]