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tender document and engagement letter

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › tender document and engagement letter

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by Kim Smith.
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  • May 31, 2019 at 7:47 pm #518109
    jihun lee
    Member
    • Topics: 117
    • Replies: 51
    • ☆☆

    Hi Kim,

    May i understand if i got this correct.

    Audit firm will be the one sending the tender document (purpose is to explain about the firm’s service ) to the new client, and then if that new client accepts it, then audit firm will have to prepare engagement letter

    is it correct ?

    June 1, 2019 at 8:09 am #518161
    Kim Smith
    Keymaster
    • Topics: 134
    • Replies: 8304
    • ☆☆☆☆☆

    Yes – a tender is just a proposal/proposition “offer” – if the client accepts it there is a contract which is legally formalised in the engagement letter,

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