Question

Which of the following is usually included in an engagement letter?

a) Defined parties to the agreement.
b) Description of the fees and costs.
c) Time horizon for the work to be completed.
d) All of the above.

Answer 1

An engagement letter is a document that outlines the terms and conditions of a professional engagement between a client and a service provider. It usually includes the defined parties, description of fees and costs, and time horizon for the work to be completed.

Step-by-step explanation:

An engagement letter is a document that outlines the terms and conditions of a professional engagement between a client and a service provider. It is typically used in the field of accounting, tax, legal, or consulting services. An engagement letter usually includes:

1. Defined parties to the agreement: This section specifies the names and contact details of both the client and the service provider.
2. Description of the fees and costs: This section outlines the fees, billing methods, and any additional costs associated with the engagement.
3. Time horizon for the work to be completed: This section states the expected timeframe or deadlines for the completion of the services.

Therefore, the correct answer is d) All of the above.