Asked by Jessica Biddle on May 31, 2024
Verified
When an accountant is hired to perform a task, the contract the accountant enters into with a client is referred to as a[n] ________.
A) Accounting contract
B) Accounting and auditing agreement
C) Engagement letter
D) Procurement letter
E) Performance letter
Engagement Letter
A formal document outlining the scope of services to be provided by a professional firm, often used in accounting and legal services.
Contract
A contract is a legally binding agreement between two or more parties that outlines obligations, rights, and duties that each party agrees to perform or honor.
- Understand the obligations under a contract and the process of engagement between accountants and their clients.
Verified Answer
MW
Megan WillisMay 31, 2024
Final Answer :
C
Explanation :
An engagement letter is the correct term used to describe the contract between an accountant and a client for the provision of the accountant's services. This letter outlines the scope of the work, terms, and responsibilities of both parties.
Learning Objectives
- Understand the obligations under a contract and the process of engagement between accountants and their clients.
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