In the turmoil of your evaluation practices, it can be easy to integrate templates of letters and documents when you accept orders and produce evaluation reports to improve the effectiveness of evaluation practices. When did you check your last engagement letter to make sure it reflected the most up-to-date best practices? Several professional associations of evaluation specialists recommend regular updates to engagement letters, and AICPA recommends regular advice from a lawyer or risk management advisor. The inclusion of several important pieces of information will help to document the understanding of the commitment of both parties. Based on AICPA`s Business Valuation Practice Practice Toolkit and other sources, here are some key themes that you should at least address in your engagement letters: A standard format for engagement letters can be helpful in ensuring that you have covered different aspects of the engagement when you are discussing an evaluation with the client and that the evaluation specialist is protected from a liability perspective. Because the last thing an evaluation specialist wants is for a client to expect an evaluation and get something else at the end of the process. For information on the most common on-the-job occupational liability claims from evaluation specialists and best practices for reducing exposures, you are participating in a webinar with John F. Raspante, CPA. Raspante is Director of Risk Management at North American Professional Liability Insurance Agency LLC (NAPLIA). Mary Ellen Biery is a research specialist at Sageworks, a financial reporting company that provides accounting firms with financial analysis and valuation applications. Although neither the standardization of professional standards nor the professional education code of the vocational education institute require the use of written agreement contracts, the use of a written agreement to provide the details of the assignment is a sound business practice. The Appraisal Institute is pleased to make the following type materials available as resources for evaluators who establish their own contract of engagement in the non-procedural context.
In this form, sampling documents relating to non-litigation procedures and warrants are processed, but can be easily processed for audits or other types of contracts. Sample materials are designed to be handled or modified if necessary. Professional liability insurance organizations may have model engagement letters that can help you develop or revise your business presentation. Examples can also be found on web resource sections for different associations.