Engagement Letters
Definition of Engagement Letters as it relates to Business, Accounting Principles, External Audit
Engagement Letters signify the agreement between an accounting firm and its client for performing specific services, such as business audits, reviews, or compilations. These letters outline the responsibilities of both parties, ensuring that the engagement adheres to professional Accounting Principles and ethical standards. By establishing clear expectations in Engagement Letters, external auditors can maintain their independence while providing valuable insights into a company's financial health.