Generally, a contract to employ a certified public accountant need not be in writing.
However, such contracts often call for services of a highly complex and technical nature, and hence they should be explicit in their terms, and they should be in writing. In particular, a written employment contract is necessary in order to avoid misunderstanding with the employer regarding the amount of the accountant's fee or compensation and the nature of its computation. This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
An Oregon engagement letter for review by an accounting firm with a form of review report outlines the terms and conditions under which the accounting firm will conduct a review of a client's financial statements. This engagement letter is an essential document that establishes a professional relationship between the accounting firm and the client, ensuring both parties have a clear understanding of the scope of work, responsibilities, and limitations. In Oregon, there are several types of engagement letters for review, tailored to specific situations or industries. Some common types include: 1. General Engagement Letter for Review: This type of engagement letter is used when the accounting firm is engaged to review financial statements in general. It covers the standard procedures and reporting requirements applicable to most industries. 2. Engagements for Nonprofit Organizations: Nonprofit organizations in Oregon have specific reporting and compliance requirements. Engagement letters for review in this context may include additional provisions related to agreed-upon procedures or compliance with regulatory frameworks like Generally Accepted Accounting Principles (GAAP) or specific tax regulations. 3. Engagements for Governmental Entities: Similarly, engagement letters for review in the public sector, such as state agencies or municipalities, may have specific guidance on reporting standards and compliance with government auditing standards. 4. Engagements for Private Companies: When reviewing financial statements for private companies, engagement letters may outline the specific procedures and reporting requirements applicable to privately-held entities. An Oregon engagement letter for review typically includes the following elements: 1. Introduction: Clearly identifies the accounting firm and the client, highlighting the purpose and objective of the engagement. 2. Scope of Work: Defines the specific financial statements or accounts to be reviewed, the period covered by the review, and any limitations or exclusions. 3. Responsibilities of the Accounting firm: Outlines the tasks to be performed by the accounting firm, including the identification of significant risks, analytical procedures, inquiry, and other review procedures. 4. Responsibilities of the Client: Describes the client's responsibilities in providing accurate and complete financial records, access to necessary information, and cooperation with the accounting firm during the review process. 5. Reporting: Specifies the nature and format of the review report to be issued, ensuring compliance with applicable professional standards and regulations. 6. Fee and Payment Terms: States the fee structure, billing arrangements, and payment terms agreed upon between the accounting firm and the client. 7. Termination: Includes provisions relating to the termination of the engagement if circumstances change or if either party is unable to fulfill their obligations. 8. Confidentiality and Independence: Specifies the confidentiality requirements and the accounting firm's independence in conducting the review. It is important to note that engagement letters for review may vary depending on the specific circumstances or industry. The above descriptions provide a general overview of the common types of engagement letters used in Oregon. However, professional advice tailored to individual situations is necessary to ensure compliance with applicable laws and regulations.
