Sample letter of engagement for a solicitor
client when reporting in accordance with the
provisions of the Solicitors Accounts
Regulations 2001 to 2013
June 2014
The Institute of Certified Public Accountants
Letter of Engagement for a Solicitor Client
The contents of this letter should be reviewed in detail before it is issued to the client. The letter may need to be
tailored to suit the requirements of the particular assignment.
Legal & Co,
14 Main Street,
Cork
May 2014
Dear Sir/Madam,
Thank you for appointing us as your accountants. (Use alternative wording if this is a renewal of an existing professional
appointment).
As discussed with (name) at our meeting on (date) and in accordance with the recommendations of the Institute of
Certified Public Accountants in Ireland, this letter sets out our understanding of the terms of our engagement.
We have agreed that we shall prepare the financial statements based on accounting records maintained by yourselves
on the basis that you will make full disclosure to us of all relevant information.
We are not responsible for the maintenance of the accounting records of the firm. We have not been appointed auditors
of your firm and therefore we shall not carry out an audit of the financial statements.
SOLICITORS’ ACCOUNTS REGULATIONS
The solicitor is responsible for complying with the Solicitors’ Accounts Regulations, 2001 to 2013. It is the responsibility
of the Reporting Accountant to form an independent opinion, based on their examination conducted in accordance with
Regulation 22 of the Solicitors’ Accounts Regulations 2001 to 2013, as to the solicitors’ compliance with Part II and Part
III(A) and Part III(B) and Part III(C) of the Solicitors Accounts Regulations, 2001 to 2013 and to report that opinion to the
Registrar of Solicitors.
This report must be submitted to the Registrar of Solicitors within six months of your year end. To enable us to do this all
records and explanations must be made available to us on a timely basis. A copy of this report to the Registrar of
Solicitors will also be sent to you. The regulations also require that the reporting accountants report furnished to the
Registrar of Solicitors should include completed Form of Acknowledgement pursuant to Regulation 4 of the Solicitors
Accounts (Amendment) Regulations 2005 (S.I. 719 of 2005) which amended the Solicitors Accounts Regulations 2001
by insertion of Regulation 21A(1) there into.
In arriving at our opinion, we are required to consider the following matters and to report on any which we are not
satisfied, as follows:
1. Whether each partner has complied with the relevant provisions of the Regulations apart from trivial breaches
due to minor clerical errors or mistakes in accounts each of which were rectified upon discovery and none of
which resulted in any loss to any client;
2. Matters in respect of which we have been unable to satisfy ourselves;
3. Matters other than trivial breaches where it appears that the solicitor has not complied with the provision of the
Solicitors Accounts Regulations, 2001 to 2013;
4. The results of the comparisons required under Regulation 22 (2), Step 6 and Regulation 22(3), step ct 2 of the
Solicitors’ Accounts Regulations, 2001 to 2013.
The following particulars must also be included in our report;
The Institute of Certified Public Accountants
1. The half yearly balancing statements, as provided for in Regulation 12(7) of the Solicitors Accounts Regulations
2001 to 2013, having been carried out by you.
2. The office balancing statement as at the accounting date, as provided for in regulation 12(8)(b) of the Solicitors
Regulations 2001 to 2013, having been prepared by you.
We are not responsible for the maintenance of the accounting records of the firm. Our work is planned and conducted to
enable us to form an opinion and includes such tests and procedures as we consider necessary for that purpose. We
plan our procedures so as to have a reasonable expectation of detecting irregularities and fraud, but our work should not
be relied upon to detect all such matters.
TAX COMPLIANCE WORK
We have agreed to prepare, as your agents, in respect of each accounting period an income tax computation, adjusted
in accordance with the provisions of the Taxes Acts. Subject to your approval this will be submitted to the Inspector of
Taxes. We will also prepare your personal income tax returns provided all the relevant personal data for same is
received on time.
You will be responsible unless otherwise agreed for all other returns including returns relating to employee taxes under
PAYE/PRSI. You will also deal with all returns and other requirements in relation to value added tax.
We shall be pleased to advise you on other matters relating to taxation such as the implications of particular business
transactions and other taxation matters which you refer to us.
OTHER SERVICES
We shall be please to provide if requested other services such as:• Advice on financial matters including pension and investment planning.
• Accountant’s report in support of returns or claims eg claims for government grants, consequential loss insurance
declarations
etc
• Reports for special purposes eg for raising finance, investigations into some specific aspects of the business;
• Computer consultancy;
• Computer payroll service;
• Recruitment of staff.
An additional letter of engagement may issue where other services are requested.
In providing the agreed services for you, our relationship will be that of professional person and client, save where we
are instructed to negotiate tax liabilities with the Revenue Commissioners.
Consequently, in producing the financial statements of your business, any working papers, including the nominal ledger
which we bring into existence for this purpose shall remain the property of this firm.
Additional Legal Responsibilities
The Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended, designate accountants and tax
advisors for the purposes of the anti-money laundering provisions of the Criminal Justice Act 1994. These provisions
include requirements to establish certain policies and procedures including the requirement to apply appropriate
customer due diligence measures.
We may also have a statutory duty to report certain matters as follows:
the Criminal Justice (Theft and Fraud Offences) Act 2001 requires that where we become aware that an
offence, as detailed in the Act, may have been committed that we report same to the Garda Siochana; and
the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 requires that where we have a
suspicion that a money laundering offence or terrorist financing has been committed that we report the matter
to the Garda Siochana and to the Revenue Commissioners.
The Institute of Certified Public Accountants
the Criminal Justice Act 2011 requires that where we have a suspicion that a listed offence has been committed
that we report the matter to the Garda Siochana.
We shall endeavour, where appropriate and permitted by law, to liaise with you prior to making any report under
these Acts.
FEES
Our fees are based upon the skill involved and the time occupied on the work and will be charged for each class of work.
They will be billed at appropriate intervals during the course of the year and will be due on presentation.
If you require we will be prepared to forward an estimation of fees in advance of any assignment.
We will give you any help you may require with problems which arise during the year and would plan to meet with you at
various times throughout the year to discuss any matters affecting your business. Please do not hesitate to contact
(name) or any of our staff whenever you feel we can be of assistance.
Confidential Information
We shall not disclose, to third parties, confidential information acquired in the course of our professional work without
your consent unless there is a legal right or duty to disclose. We are obliged under the regulations of our Institute to
make all files available for inspection in the course of a routine quality assurance review, in accordance with the Byelaws
of the Institute of Certified Public Accountants in Ireland.
AGREEMENT OF TERMS
Once it has been agreed this letter will remain effective until it is replaced.
Please confirm your agreement with the terms of this letter by signing this copy and returning it to us or alternatively let
us know if the terms are not in accordance with your understanding of the terms of our appointment.
Yours faithfully
ABC & Company
Acknowledged
by:
The Institute of Certified Public Accountants
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Date:
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