Question about engagement

[KingCPA]

I have a client that is a member of a two person partnership. She has reason to believe that the other 50/50 partner has been mismanaging the partnership and would like to hire me to inspect the books,returns,etc. to confirm or deny her beliefs.


My question is, what kind of engagement would this be considered for me? Would I still need an engagement letter? Would it qualify as an audit if it's only to inspect the books for any errors affecting my client?

Lastly, the other partner is not on board with this audit. Will probably not sign any engagement letter but will provide the information needed

 

[ColinCPA]

This sounds like a forensic engagement, and more of a management consulting service than an audit attest service. This would change if the work was to be relied on by any outside parties, but it sounds like this is for management use only.

You should try to get a signed engagement letter, which clearly spells out the nature of the service as NOT to be relied on by anyone other than the agreed-on parties. You might want to get an attorney's opinion on the other partner not signing the letter, but document that an attempt was made to get him to sign.

 

[KingCPA]

Thanks, Colin. Sorry it took me awhile to get back here. This issue sorta of fell on the back burner. Much appreciate the advice and that sounds like what I will do.