Audit Engagement Letter Template - Examples Page 8
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1410 Client Monies
10.1 We may, from time to time, hold money on your behalf. Such money will be held in trust in
a client bank account, which is segregated from the firm’s funds.
11 Retention of Records
11.1 During the course of our work we will collect information from you and others acting on
your behalf and will return any original documents to you following preparation of your return.
You should retain them for [...] year[s] from the 31 January following the end of the tax year.
This period may be extended if the Inland Revenue enquire into your tax return. [Practitioners
who retain records on behalf of clients will need to amend this paragraph.]
11.2 Though certain documents may legally belong to you, we intend to destroy
correspondence and other papers that we store which are more than seven years old, other
than documents which we consider to be of continuing significance. You must tell us if you
require retention of a particular document.
12 Regulatory Requirements
12.1 We reserve the right to disclose our files to regulatory bodies in the exercise of their
powers. [Adapt as necessary and for firms who voluntarily undergo external peer review.]
13 Quality of Service
13.1 We aim to provide a high quality of service at all times. If you would like to discuss with us
how our service could be improved or if you are dissatisfied with the service you are receiving
please let us know by contacting [insert name].
13.2 We undertake to look into any complaint carefully and promptly and to do all we can to
explain the position to you. If we do not answer your complaint to your satisfaction you may
take up the matter with the Association of Chartered Certified Accountants.
14 Fees
This is an example only – if fees are calculated on any other basis, for example a fixed amount or
contingency fee, then different wording should be substituted.
14.1 Our charges are computed on the basis of fees for the time spent on your affairs (which
depend on the levels of skill and responsibility involved) and disbursements incurred in
connection with the engagement. [If work is required which is outside the scope of this letter,
for example dealing with Inland Revenue enquiries into the tax return, then this will be a
separate engagement for which additional fees will be chargeable.] We will issue invoices at
[monthly/quarterly/six-monthly] intervals during the course of the year. We will add value-
added tax, if applicable, at the current rate.
14.2 Our invoices are payable on presentation. We reserve the right to charge interest at [….]%
per [month/year] [over base rate] in the case of overdue accounts. We may terminate our
engagement and cease acting if payment of any fees billed is unduly delayed. However, it is not
our intention to use these arrangements in a way which is unfair or unreasonable.
15 Limitation of Liability
Practitioners who wish to include provisions intended to limit their liability in the event of a
claim by a client are strongly advised to take legal advice on this complex matter.
15.1 The advice, which we give to you, is for your sole use and does not constitute advice to any
third party to whom you may communicate it.
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Parent category: Letters