An engagement letter defines the legal relationship (or engagement) between a professional firm (e.g., law, investment banking, consulting, advisory or accountancy firm) and its client(s). This letter states the terms and conditions of the engagement, principally addressing the scope of the engagement and the terms of compensation for the firm.
Contents
Most engagement letters follow a standard format. The example given below refers to the engagement of an accountancy firm.
Standard format for letters of engagement
Audit and Assurance Standard
References
Engagement letter Wikipedia(Text) CC BY-SA