An engagement letter is a letter that is written professionally to state the relationship and the terms between a business firm and its clients. It states the business engagement or the business proposal and therefore mentions the tasks and activities that are promised as per the engagement.

Sample Engagement Letter:

Mr. Matthew Max,
Fortune Pvt. Ltd.
New York,

2nd June, 2014.

Subject: Engagement letter for Audit.

Respected Sir,

It gives me an opportunity of immense pleasure to confirm my understanding of the services I’ll be providing to Fortune Pvt. Ltd. for the end of the fiscal year ending by June, 2014. An audit will be conducted on the financial statements of the government responsible for the energy management as handled by your organization.

The main motive of executing the audit will be to cross-check whether your financial demands are satisfactorily fulfilled by the U.S. government in terms of all the basic needs. My audit will be executed in accordance to the standards of the U.S. government and will comprise of important tests related to the account management, sources of income, sectors of expenditure and
any other check, if found necessary by the U.S. auditing standards.

Therefore, I expect an expression to enable my functions. If the audit turns out to be unqualified, I assure you to inform it in an advance. If by any chance, I fail to form opinions or not come up with results, I will decline to issue a report or express opinions under our clauses of engagement.

This letter is expected to be in function until either of the participants decline the terms and conditions of the engagement.

Joseph Statham