NOTE # 8

SAMPLE ENGAGEMENT LETTER FOR A COMPILATION ENGAGEMENT

This example is provided to assist the Bookkeeper who uses an engagement letter as a
record of the agreement reached with the client. Appropriate amendments would be
made to take into account the circumstances of each engagement.
Date
Client Limited
Address
(The addressee should be a person having the necessary authority to sign on behalf of
the company, for example, the President.
Dear:
This letter confirms the terms of my appointment as your Bookkeeper, and it outlines the
terms, nature, and extent of the services I will e providin!"
I will compile #inancial $tatements as arran!ed from time to time from information
provided y you" I will not attempt to verify the accuracy or completeness of such
information" The communication that I will normally reference or attach to each pa!e of
your statements will e sustantially in the followin! form:
NOTICE TO READER
I have compiled the Balance $heet of CLI%&T Limited as at Decemer '(,
)*** the $tatements of Income, +etained %arnin!s, and Cash #low for the
year then ended from information provided y mana!ement"
I have not attempted to verify the accuracy or completeness of such
information" +eaders are cautioned that these statements may not e
appropriate for their purposes"
,lace -si!ned.
Date -C%+TI#I%D. B//00%%,%+
1y services will not result in the expression of any form of assurance on the #inancial
$tatements"
It is understood and a!reed that:
-a. you will provide me with accurate and complete information necessary to compile
such statements2
-. the responsiility for the accuracy and completeness of the representations in the
#inancial $tatements remains with you2
-c. each pa!e of the #inancial $tatements will e conspicuously marked 3 4naudited5 see
&otice to +eader6
-d. you will attach my 3&otice to +eader6 when distriutin! the #inancial $tatements to
third parties"
-e. ecause the #inancial $tatements may either lack disclosure re7uired y, or otherwise
not e in accordance with, !enerally accepted accountin! principles, they may not e
appropriate for !eneral purpose use2 and
-f . uninformed readers could e misled unless they are aware of the possile limitations
of the statements and my very limited involvement
-!. this en!a!ement cannot e relied upon to prevent or detect error and fraud and other
irre!ularities" I wish to emphasi8e that responsiility for the prevention and detection of
error and fraud and other irre!ularities must remain with mana!ement"
I will also prepare the necessary #ederal and ,rovincial income tax returns and
supportin! schedules, carry out any ookkeepin! that is necessary to effect the
compilation, and perform such related services as may e a!reed from time to time"
(!f you provide personal or corporate income tax return service, add the above
paragraph
In order to compile the #inancial $tatements pursuant to this en!a!ement, I will prepare
various workin! papers" I will retain ownership of all such workin! papers which we
may use in any manner we deem appropriate, while respectin! your confidentiality"
1y fees are ased on the complexity and nature of the work and the de!ree of
responsiility and skill re7uired" Any disursements will e added to my invoice" All
illin!s are due upon presentation, unless other arran!ements have een made in advance"
A char!e of -x. 9 per month :-x. 9 on an annual asis; applies to overdue accounts" I
shall e pleased to discuss the contents of this letter with you at any time, and to explain
the reasons for any items"
In order to complete the en!a!ement, I will re7uire access to certain personal
information" <ou herey represent to me that you have otained all consents that are
re7uired under applicale privacy le!islation for the collection, use, and disclosure to me
of personal information" I will mana!e all personal information in compliance with my
,rivacy Code"
The arran!ements outlined in this letter will continue in effect from year to year unless
amended in writin! y oth parties or terminated y written notice from either party"
4pon termination of this en!a!ement, I will invoice you for any unilled fees and
expenses" #urther, you a!ree to pay your account to the date of termination upon receipt
of my invoice"
If the services outlined are in accordance with your re7uirements and if the aove terms
are acceptale to you, please si!n the copy of this letter in the space provided and return
it to me" I appreciate the opportunity of providin! my services to your company"
<ours very truly,

-<our name.
-C%+TI#I%D.B//00%%,%+
The services and terms set out aove are as a!reed"
Client &ame:
,er:
-&ame.:
-Title.:
-Date.: