Which of the following is true of engagement letters?
A) Engagement letters can be modified with the approval by both parties.
B) Engagement letters are generally addressed to the expert to establish the expert's relationship as the attorney's agent.
C) Engagement letters are treated as privileged communication and need not be disclosed to the court.
D) Engagement letters for providing litigation services are required under the AICPA's professional standards.

Question

Quizplus · Accepted Answer

Engagement letters can be modified with the approval of both parties. This allows for flexibility and adjustments to the scope of work or fees as needed throughout the engagement.

Answer: B 
 Engagement letters are generally addressed to the client to establish the terms of the engagement, including the scope of work, fees, and expectations. While the expert may be referred to as the attorney's agent in some instances, this is not the primary purpose of the engagement letter.

Answer: C 
 Engagement letters are not treated as privileged communication and may need to be disclosed to the court if requested.

Answer: D 
 While engagement letters are recommended and best practice for providing litigation services, they are not required under the AICPA's professional standards.

Which of the Following Is True of Engagement Letters