Disengagement Letters

Crafting Documentation for a Variety of Scenarios

Joyce C. Lambert, PhD, CPA, CIA, and Samuel J. Lambert, PhD, CPA, and Jennifer A. Haydel, CPA, CMA

Both engagement and disengagement letters should be standard practice when an accounting practice intends to initiate or terminate a client relationship. Engagement letters should be sent prior to the engagement and are designed to establish a clear understanding of the scope and nature of services to be provided to the client. Disengagement letters are sent by the accounting firm to the client to unilaterally indicate a termination of services.