Text in italics represents comments and explanations, which are removed from letters to clients. Sections in square brackets must be adapted to the specific engagement.
Enterprise:
Attention:
Address:
Post code Town/City:
[Town/city, DDMMYYYY]
Engagement Letter for Accountancy Services
Scope and execution of the Accountancy Engagement
With reference to previous contacts, [name of Accountancy Firm] (“the Contractor”) hereby confirms the engagement to assist [name of Enterprise] (“the Client”) with accountancy services (“the Engagement”) as set forth below.
Our Engagement comprises the following:
………
………
………
Other conditions relating to the scope, division of responsibility, execution and delivery of the services are indicated by the description(s) of engagement, Appendix [X–Y].
The Engagement will be executed in accordance with the Swedish Standard for Accounting Services (Reko). This means, among other things, that the material supplied to the accountingconsultant must be in accordance with the requirements of Chapter 5 of the Bookkeeping Act. In practical terms, this means that all vouchers must be arranged in chronological order and contain the particulars required by the BookkeepingAct. In addition, the material must be submitted to us within the time agreed in Appendix [X], so that it can be completed and delivered within the time limits applicable to the Engagement.
[Next paragraph is only to be included in the case of combined engagements]
[Combined engagements
In addition, where [name of Accountancy Firm] has the audit engagement, no-one in [name of Accountancy Firm] may handle the basic book-keeping. In these cases all vouchers must be classified and approvedby you. In view of the fact that change may take place in legal practice regarding accounting services related auditor disqualification, we must reserve the right to adjust the scope of the Engagement from time to time.]
You, as the Client, bear the soleresponsibility for your enterprise's accounts and the reports based thereon, which means that you are also responsible for basic documentation supplied being complete and not containing errors or deficiencies. We, as the Contractor, are not responsible forerrors in the prepared information if this is due to deficient disclosure from you.
Terms of Engagement
General terms for accountancy services established by FAR, the Institute for the Accountancy Profession in Sweden, are applicable to the Engagement, see Appendix 1 [however with the following additions, exceptions/deviationsor changes:]
[Fee]
[Selectone of the following alternatives and adapt this to the specific Engagement]
[Alternative 1] If a fee is to be charged in accordance with the bases of calculation in FAR's General Terms, nothing need be stated concerning the fee.
[Alternative 2] A fixed fee of [SEK .... per week/month/quarter/year] is payable for the Engagement. Value-added tax is payable in addition. Any expenses and disbursements are charged separately. In the event ofthe Engagement being modified in relation to the description of engagement, we reserve the right to adjust the stated fee in accordance with fee tariffs applicable from time to time. Invoicing will take place regularly [monthly].
[Alternative 3] Our work will be performed on current account at [SEK …. per hour for regular accountancy services, SEK …. for pay administration, SEK …. for preparation of annual financial statements and SEK …. for other services unless otherwise stated in AppendixX-Y for a particular service]. Reimbursement of expenses and disbursements and value-added tax are payable in addition. Invoicing will take place regularly [monthly].
[The time taken to execute the Engagement is estimated at approx. ...... hours per week/month/year.]Select whether or not this is to be included.
Set-up and start-up costs will be invoiced separately and at the time when the Engagement is commenced.
[The fee will be adjusted annually by index XX starting on DDMMYYYY.]
Period of validity [and termination]
[Selectone of these alternatives]
The Engagement [Alternative 1] relates to the period [state the period in question].
The Engagement [Alternative 2] runs from [DDMMYYYY] and applies until further notice with a mutual period of notice of termination of [….months]. Notice of termination must be given in writing.
Contact persons
For the Client:
[Name, e-mail, telephone and mobile number]
For the Contractor:
[Name, e-mail, telephone and mobile number]
Confirmation
Please contact the undersigned if you have any questions concerning the contents of this Letter of Engagement.
We request that you sign this engagement letter, which has been drawn up in two copies, to show that you confirm and consent to this agreement on the accountancy servicesengagement and the division of responsibilities.
Please return a copy to [Name].
Yours sincerely
[Name of Firm]
------
[Signed by authorised representative/employee]
Appendices
Appendix 1: FAR’s General Terms for Accountancy Services (version 2014:1)
[Appendix 2: Description of engagement forregular accountancy services
Appendix 3: Description of engagement for financial statements and annual report
AppendixX-Y May for example contain descriptions of what operations are to be performed by the Contractor and at what frequency, the form of reporting, who is the recipient of reports and when in time these are to be delivered.]
[Adapt the list of appendices2-Y to the Engagement]
[The Enterprise]
SignatureTitle
Name in block capitalsDate
[Comment: Normally authorised signatory or managing director but also other person authorised to act for the company]