Document background
The Engagement Letter For Preparation Of Financial Statements is a crucial document used when a company engages professional accountants to prepare their financial statements in accordance with Hong Kong regulations. This document is necessary to comply with professional standards set by the Hong Kong Institute of Certified Public Accountants (HKICPA) and the Hong Kong Companies Ordinance. It clearly defines the scope of services, establishes expectations, and outlines responsibilities while ensuring compliance with local regulatory requirements. The letter is particularly important for companies that need professional assistance in preparing financial statements but don't require a full audit, and it helps protect both the accounting firm and the client by clearly documenting the nature and limitations of the engagement.
