Document background
A Preparation Engagement Letter is a fundamental document used in professional services engagements within the UAE, establishing the framework for financial statement preparation services. This document is essential when a company engages a professional services firm to prepare financial statements or other financial reports without providing assurance services. The letter clearly delineates the scope of preparation services, professional standards to be followed, and respective responsibilities of both parties while ensuring compliance with UAE regulations, particularly UAE Federal Law No. 12 of 2014 and relevant professional standards. It serves as a crucial risk management tool by clearly documenting the nature and limitations of the engagement, fee arrangements, and expected deliverables.
