When is it necessary to send a new engagement letter to a continuing client?
A)Only when the terms of the engagement have changed.
B)Every year.
C)On a quarterly basis.
D)Along with the CPA's bill for the first year of services.

Question

Quizplus · Accepted Answer

It is only necessary to send a new engagement letter when the terms of the engagement have changed. This ensures that both the client and the CPA are clear on the services to be provided and the expectations of both parties. Sending a new engagement letter every year or on a quarterly basis is not necessary unless changes to the engagement have occurred. Sending the engagement letter along with the CPA's bill for the first year of services may not provide enough time for the client to fully review and understand the terms of the engagement.

When Is It Necessary to Send a New Engagement Letter