Management of risk and liability
The Audit and Assurance Faculty has published guidance to assist accountants in managing their risk and liability when undertaking assurance engagements.
AAF 04/06: Assurance engagements: management of risk and liability provides information on:
- Accepting an engagement.
- Managing professional liability.
- Agreeing on the terms of the engagement.
- Form of report.
Alongside other advice, AAF 04/06 provides examples of where legal actions may arise from those who are not party to the engagement, and example clauses which assurance practitioners may consider including in their engagement letter.
ICAEW provides more general guidance for accountants to manage their risk of potential liability because of an act or omission resulting in financial loss.
Page reviewed April 2018. Next review due April 2019.
ICAEW's assurance resource
This page is part of ICAEW’s online assurance resource, which replaces the Assurance Sourcebook.