RubinBrown Team Member Manual

Engagement letters 1209

Policy Title: Policy Number:

Section:

Risk Management

Effective Date:

Supersedes Policy Dated:

06/01/2024

06/01/2023

Policy: In general, engagement letters are required in the following circumstances: • Compilation, review and audit engagements – required annually

• Business entity tax return only engagements (corporations, partnerships, etc.) – required annually. • Due diligence, business valuation, litigation support, bankruptcy, forecast and projection, Entrepreneurial Services and Family Office Services, agreed-upon procedures, other attest engagements, and internal audit engagements – required for each such project • Other non-attest services in excess of 40 hours, when provided for attest clients, unless covered under a separate policy – required for each such project • Other separate projects that are significant in size or scope or that involve significant risk – required for each such project Procedure: On engagements in which engagement letters are to be utilized, signed engagement letters should be received from clients before providing any significant services. In the case of annual engagement letters for individual income, trust and gift tax returns, the provision of the client’s tax information to RubinBrown will indicate his/her agreement with the terms of the engagement letter. No client signature is required. Separate engagement letters should be obtained on all significant new engagements for existing clients or for engagements in which RubinBrown’s scope of service has changed. Marketing information or terminology should not be included in engagement letters. Combination proposal /engagement letters cannot be utilized. Any exceptions to this policy must be approved by the Risk Management Committee. A database of all engagement letter templates (assurance service, tax, consulting and entrepreneurial services) has been created and shall be used to obtain templates for engagement letters. Any engagement team member may initiate engagement letters at the request of the engagement manager or partner. Draft engagement letters should be forwarded to the engagement partner for approval, along with an engagement budget, where applicable. One of the standard RubinBrown terms and conditions should be attached to each engagement letter, as applicable. These terms and conditions can only be changed with the approval of the following: • Chair of the Risk Management Committee • Partner - Risk Management Committee Member • Chairman Any changes to the standard terms and conditions need approval. Standard terms and conditions are reviewed annually. The above-listed partners are also available to assist with, and should be consulted on, negotiation of terms and conditions with clients. Sample engagement letters out of other resource materials used as templates for special engagements need to be specifically tailored to include certain language already included in the RubinBrown templates. This includes reference to the arbitration provision and the attached terms and conditions. Engagement letters are to be addressed, at a minimum, to the most senior executive at the client (e.g., CEO, President, Owner). The letter can be dual-addressed to the CFO or Controller but must also be signed by the most senior executive. In the case of an entity which has an audit committee responsible for engaging RubinBrown, the

Audit Committee Chair should also be copied on the letter for signature. Exceptions to this policy should be discussed with a Risk Management Partner.

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