Gwinnett CPA’s Sample Engagement Letter for Management Reports

Gwinnett CPA’s Sample Engagement Letter for Management Reports

My goal is to always have an open, honest, and forthright relationship with all of my clients. To that end I have listed below the sample engagement letter a client will receive if they retain my firm for Management Reporting Services. As with all of our correspondence and services we are an “open book” and invite all questions and clarification. Accordingly please find below a sample engagement letter when Compiled Management Report might be issued:

To:___________________________________                                                                     Date_____________________




Dear __________________

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services I will provide.

  1. I will perform the following services: I will compile from information you provide, the ___________financial         statements of the company for the _________ ending_____________. A compilation is limited to presenting in the form of financial statements information that is the representation of management.  I will not review or audit the financial statements and accordingly, will not express an opinion or any other form of assurance on them. The financial statements will not be accompanied by a report.

Based upon our discussions with you, these financial statements have been designed to meet your needs in managing your business. Accordingly, these statements are for management’s use only and are not intended for third-party use.

Material departures from Generally Accepted Accounting Principles (GAAP) exist and the effects of those departures, if any, on the financial statements are not disclosed. In addition, substantially all disclosures and the statement of cash flows required by GAAP have been omitted. Notwithstanding these limitations, you represent that you have knowledge about the nature of the procedures applied and the basis of accounting and assumptions used in the preparation of the financial statements that allows you to place the financial information in the proper context. Further, you represent and agree that the use of the financial statements will be limited to members of management with similar knowledge.

The financial statements are intended solely for the information and use of management and are not intended to be and should not be used by any other party. Should you require financial statements for third party use, we would be pleased to discuss with you the requested level of service. Such engagement would be considered separate and not deemed to be part of the services described in this engagement letter.

This will confirm that you are solely responsible to establish and maintain internal controls, including monitoring ongoing financial activities related to the services.  Our engagement cannot be relied upon to disclose errors, fraud, or illegal acts that may exist. However, I will inform the appropriate level of management of any material errors that come to our attention and any fraud or illegal acts that come to our attention, unless clearly inconsequential. In addition, I will report to you any evidence or information that comes to my attention during the performance of our procedures regarding illegal acts that may have occurred, unless they are clearly inconsequential.  No such fraudulent or illegal acts came to our attention during the engagement.

In the event of a dispute over our engagement, we mutually agree that any dispute that may arise in connection with our engagement will be submitted to mediation by selecting a third party to help us reach an agreement.  We acknowledge that the results of this mediation will not be binding upon either of us.  The costs of the mediation will be shared equally by both of us.  If I incur legal fees as a result of our reliance on any false representation by you, you agree to reimburse us for all of our legal fees and related costs of defense.  In view of the limitations described above, you agree not to take, or assist in, any action seeking to hold us liable for damages due to any deficiency in the financial statements I prepare and you agree to hold us harmless from any liability and related legal costs arising from any third-party use of the financial statements in contravention of the terms of this agreement.

This will confirm that all of my work will be done at our standard hourly rate of $185 per hour, that invoices are due upon receipt, that finance charges at the rate of two percent per month and collection costs are due on all unpaid monies, and that you personally guarantee payment of all invoices.   If the foregoing is not in accordance with your understanding, please notify me in writing within five days of this letter.


John C. Dillard, C.P.A.



Romans 1:1 “Paul, a servant of Christ Jesus, called to be an apostle and set apart for the gospel of God.”

Written by author John Dillard CPA of His CPA at 770 814 9304 and visit (a Christian CPA firm). At His CPA we march to the beat of a higher drummer where we put the “Golden Rule” to work each and every day by “Serving Him by Serving You…One Tax Return at a Time.”

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Payroll Administration, Bookkeeping.

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain.


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