Document background
The Accounting Engagement Letter is a fundamental document used in Australian professional accounting practice to formally establish the professional relationship between an accounting firm and its client. It is required by professional standards, particularly APES 305, and serves multiple crucial purposes: defining the scope of services to be provided, establishing the responsibilities of both parties, outlining fee arrangements, and setting expectations for deliverables. This document is essential for compliance with Australian regulatory requirements and professional standards, while also providing legal protection for both parties. It should be issued before any professional services commence and updated when there are significant changes in the engagement's scope or nature. The letter typically includes details about specific services to be provided, whether they are audit, tax, advisory, or other accounting services, and must comply with Australian accounting standards and relevant legislation.
