[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-275594-105":3,"detail-sidebar-cat-1-en-105":81,"doc-detail-275594-en":127},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","engagement-letters-best-practices-fee-privacy-and-limiting-phrase-guidance","Engagement Letters - Best Practices - Fee, Privacy, and Limiting Phrase Guidance","","Engagement Letters - Best Practices provides practical guidance on structuring client engagement agreements for services such as bookkeeping, financial audits, tax preparation, and special projects. It emphasizes securing a separate, signed and dated letter for each engagement, clearly describing the scope, and adding limiting phrases that define responsibilities and non-guarantees. The document also covers fee structure options, dispute timing, liability limits, and privacy policy topics including non-disclosure and handling information to affiliates or service providers.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/template/","Template",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/template/letters/","Letters",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/template/engagement-letters-best-practices-fee-privacy-and-limiting-phrase-guidance/275594/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/engagement-letters-best-practices-fee-privacy-and-limiting-phrase-guidance/275594.png","ImageObject",442,249,{"name":42,"@type":43},"Mimi","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-11-02","2026-09-15",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",9,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"What should an engagement letter include for each client engagement?","Question",{"text":63,"@type":64},"It should secure a signed engagement letter for each engagement, clearly describe the specific scope, and be signed and dated by both the firm and the client.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"What limiting phrases are recommended in an engagement letter?",{"text":68,"@type":64},"The letter should include phrases addressing what the firm is not doing (e.g., not auditing for fraud), reminding the client of final responsibility, and stating how errors or omissions from prior work will be communicated and that certain controversies are not guaranteed.",{"name":70,"@type":61,"acceptedAnswer":71},"How should fees and privacy be addressed?",{"text":72,"@type":64},"Fees should specify whether the engagement is flat fee or hourly, how payment will be made, how fee disputes are handled, the time period for actions related to fees, and liability limited to fees paid for that engagement. Privacy should cover non-disclosure to third parties except as required or permitted, and information sharing with affiliates and/or service providers.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},275594,1790179590,{"code":4,"msg":82,"data":83},"success",[84,89,94,99,104,109,114,118,123],{"id":85,"doc_module":22,"doc_module_name":25,"category_name":86,"show_sort_weight":87,"slug":88},11,"Presentations",90,"presentations",{"id":90,"doc_module":22,"doc_module_name":25,"category_name":91,"show_sort_weight":92,"slug":93},12,"Resumes",80,"resumes",{"id":95,"doc_module":22,"doc_module_name":25,"category_name":96,"show_sort_weight":97,"slug":98},14,"Invoices",70,"invoices",{"id":100,"doc_module":22,"doc_module_name":25,"category_name":101,"show_sort_weight":102,"slug":103},15,"Posters",60,"posters",{"id":105,"doc_module":22,"doc_module_name":25,"category_name":106,"show_sort_weight":107,"slug":108},16,"Social Media",50,"social-media",{"id":110,"doc_module":22,"doc_module_name":25,"category_name":111,"show_sort_weight":112,"slug":113},17,"Forms",40,"forms",{"id":115,"doc_module":22,"doc_module_name":25,"category_name":29,"show_sort_weight":116,"slug":117},18,30,"letters",{"id":119,"doc_module":22,"doc_module_name":25,"category_name":120,"show_sort_weight":121,"slug":122},21,"Paper Templates",5,"papers-templates",{"id":124,"doc_module":22,"doc_module_name":25,"category_name":125,"show_sort_weight":4,"slug":126},158,"General","general-158",{"code":4,"msg":82,"data":128},{"doc_id":79,"user_id":129,"nickname":42,"user_avatar":130,"doc_module":22,"category_id":115,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":131,"file_id":132,"file_url":133,"file_type":134,"file_size":135,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":22,"language":136,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":12,"update_tm":140,"read_time":4},2336477974920,"https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d","ENGAGEMENT LETTERS – BEST PRACTICES  \nThis is a general discussion of this topic and is not meant to provide specific advice for any firm. Please consult with your attorney and/or professional insurance carrier to address the needs of your firm.  \n1. Secure a signed engagement letter from your client for each engagement, such as monthly bookkeeping, financial audits, tax preparation or special projects.  \n• A new letter should be secured for each project, such as 2014 tax preparation and 2015 tax preparation.  \n• Separate letters should be secured for each engagement, such as 2015 tax preparation and 2015 income projection for purposes ofa bank loan.  \n• Describe the specific engagement, such as, preparation of your 2015 federal, Illinois and Maine income tax returns.  \n• An engagement letter should be signed & dated by your firm & by the client.  \n2. Include limiting phrases, such as:  \n• We’re not auditing your books or looking for fraud, defalcation, etc.  \n• You have the final responsibility to review your tax returns before signing them.  \n• We will bring any discovery of errors/omissions on a prior year tax return or financial audit to your attention.  \n• Your signature below indicates you understand that results of IRS controversy engagements are not guaranteed.  \n• Additional services (such as X, Y or Z), if required, are not included in this engagement.  \n3. Discuss your fees.  \n• Is this engagement flat fee? Hourly?  \n• Will your client pay for this engagement upon being billed, through an up-front retainer, or using a different method?  \n• How are fee disputes to be addressed?  \n• What is the time period during which an action may be brought regarding fees (such as, no more than 1 year after the date of the last services provided under the specific engagement letter)?  \n• Limit your liability to the amount of the fees paid for that specific engagement.  \n4. Discuss your privacy policy. You may wish to include such topics as:  \n• Non-disclosure of information to 3rd parties, except as required by law and/or permitted by the Code of Professional Conduct of the AICPA.  \n• How you handle provision of information to firm affiliates and/or firm service providers.","cbCainM2QNVtLAst","https://ap.wps.com/l/cbCainM2QNVtLAst","pdf",75716,"English","# Engagement letter structure\n## Scope and separate signed letters\n## Limiting phrases and responsibility boundaries\n## Fee discussion and liability limits\n## Privacy policy and information handling","[{\"question\":\"What should an engagement letter include for each client engagement?\",\"answer\":\"It should secure a signed engagement letter for each engagement, clearly describe the specific scope, and be signed and dated by both the firm and the client.\"},{\"question\":\"What limiting phrases are recommended in an engagement letter?\",\"answer\":\"The letter should include phrases addressing what the firm is not doing (e.g., not auditing for fraud), reminding the client of final responsibility, and stating how errors or omissions from prior work will be communicated and that certain controversies are not guaranteed.\"},{\"question\":\"How should fees and privacy be addressed?\",\"answer\":\"Fees should specify whether the engagement is flat fee or hourly, how payment will be made, how fee disputes are handled, the time period for actions related to fees, and liability limited to fees paid for that engagement. Privacy should cover non-disclosure to third parties except as required or permitted, and information sharing with affiliates and/or service providers.\"}]","Engagement Letters - Best Practices - Fee, Privacy, and Limiting Phrase Guidance | PDF",1789488469]