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Client disengagement

Disengaging from clients, including preparing disengagement letters.

In order to avoid any future misunderstandings relating to your firm ceasing, for whatever reason, to provide services to a client, ICAEW considers it best practice to agree suitable terms of disengagement with the client. Wherever possible, terms of disengagement should be confirmed in writing in a suitably worded Disengagement Letter.

What you need to do before disengaging with your client

Consult the Practice Assurance Standards

Members should consult the detailed Practice Assurance Standards, particularly the guidance on Client acceptance and disengagement

Review Anti-Money Laundering regulations

Anti-Money Laundering regulations require a firm to retain the evidence of client identity, obtained when the client relationship first commenced, for a period of five years from the date the relationship ends.

Consult Auditor Resignation under Companies Act 2006

'Auditor Resignation under Companies Act 2006' provides guidance on the notification requirements by the company and auditor when the auditor resigns.

Guidance on the preparation of disengagement letters

Disengagement Checklist helpsheet provides a useful pro forma checklist for assessing and recording the reasons underlying a client disengagement, and highlighting any issues requiring further clarification or action. It will help you to establish procedures to mitigate any risk of subsequent complaint.

Disengagement Letters helpsheet provides advice and sample structure and content to help members develop effective, comprehensive disengagement letters.