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Requesting signed authority to act before starting a new engagement
A practical approach to putting a written engagement in place.
Before starting a new engagement, firms generally put a written agreement in place setting out what work will be done and on what terms. This guide sets out a practical approach to requesting that authority. It is general information, not legal or compliance advice.
Action plan
1 Confirm a written engagement is appropriate A written agreement generally helps avoid uncertainty over scope and fees.
The Tax Practitioners Board's own guidance recommends a written agreement setting out the terms and conditions of an engagement before starting tax agent or BAS services, though it is not itself a specific requirement of the Code of Professional Conduct. A written engagement helps establish a clear understanding of scope, fees, and each party's responsibilities, and supports (without alone guaranteeing) compliance with your firm's professional obligations.
- Prepare a written engagement before starting a new matter
- Set out scope of work, fees, and responsibilities clearly
- Issue separate letters for related parties where relevant (for example a company and its directors, or trustees and beneficiaries)
Done when: A written engagement covering scope, fees, and responsibilities is signed before work starts
TPB: letters of engagement2 Cover the essentials in the engagement Set out who is providing the service, the scope of work, and how information will be handled.
A useful engagement generally names the individual or entity providing the service, describes the scope of work, and explains how client information will be handled, including any third parties who may receive it. Vertical Flows can structure the intake and evidence workflow this relies on. It does not draft the engagement itself.
- Name the individual or entity providing the service
- Describe the scope of work and fee basis
- Explain how client information will be handled, including any third-party recipients, consistent with your firm's own privacy obligations
Done when: The signed engagement covers who is acting, the scope of work, and how information will be handled
See how structured intake and review works3 Keep the signed authority on file Store the signed engagement with your other client records.
Keep the signed engagement with your firm's other client due diligence and file records, so it can be produced if a client's authority to act is ever questioned.
- Store the signed engagement with your firm's client records
- Note the date it was signed and who it covers
- Review it again if the client relationship changes materially
Done when: The signed engagement is stored with the firm's client records