This guide explains the February 2026 updates to the Letters of Engagement and Letters of Representation available in BrightAccountsProduction for Company templates, covering both the Republic of Ireland and the United Kingdom.
These updates ensure continued alignment with current legislation, professional standards, and regulatory requirements. Updated letters are available directly within the relevant compliance sections and can be tailored as required.
Letter of Engagement – Republic of Ireland (Company Template)
The updated Letter of Engagement for Republic of Ireland companies clearly defines the responsibilities of directors and reporting accountants, supporting statutory compliance and professional clarity.
Key responsibilities and confirmations:
Directors’ responsibilities
• Prepare complete and accurate financial information
• Maintain proper accounting records
• Ensure compliance with all applicable laws and regulations
Reporting accountants’ responsibilities
• Perform work with due skill, care, and competence
• Comply with ethical and professional standards
• Limit responsibility strictly to the agreed scope of work
Scope and reporting
• Review financial information provided by directors
• Perform ROI analysis as agreed
• Prepare a report for directors (not an audit or assurance engagement)
• Address the report to directors in the required format, outlining findings and recommendations
Commercial and legal terms
• Fees charged in accordance with the agreed structure, plus VAT where applicable
• Payment terms as agreed
• Working papers retained for the statutory period
• Engagement governed by the laws of England & Wales or the Republic of Ireland, as appropriate
Regulatory and compliance matters
• Comply with GDPR and Data Protection legislation
• Update work to reflect legislative or regulatory changes
• Maintain compliance with criminal law, including fraud and financial crime provisions
• Report suspicious activity under applicable AML legislation
• Verify and retain client identity documentation
• Engagement confirmed upon signature and return of client acceptance
Letter of Representation – Republic of Ireland (Company Template)
The Letter of Representation for Republic of Ireland companies provides written confirmation from directors regarding the completeness and accuracy of information used in preparing the financial statements.
Director confirmations include:
• Financial information is complete, accurate, and prepared in accordance with applicable standards
• The company meets audit exemption criteria
• Full compliance with GDPR and Data Protection legislation
• All records, documents, and explanations have been provided
• No known or suspected fraud affecting the company
• Compliance with all applicable laws and regulations
• All contingent liabilities have been identified and disclosed
• The company is a going concern for the foreseeable future
• Proper title is held to all recorded assets
• All relevant post-reporting date events have been disclosed
• The company is a going concern for the foreseeable future
• Proper title is held to all recorded assets
• All relevant post-reporting date events have been disclosed
Letter of Engagement – United Kingdom (Company Template)
The updated UK Letter of Engagement defines the agreed scope of work and statutory responsibilities under the Companies Act 2006, FRS 102, and applicable ethical standards.
Key responsibilities and scope:
Directors’ responsibilities
• Maintain statutory books and accounting records
• Prepare annual accounts in accordance with legislation and FRS
• Provide complete and timely information
Reporting accountants’ responsibilities
• Comply with ICAEW / ACCA ethical standards
• Prepare accounts solely from records provided by directors
• Identify and highlight material inconsistencies
• Rely on directors’ representations
Nature of the engagement
• Limited assurance engagement only – no audit performed
• No audit opinion is expressed
• Report signed and dated by the reporting accountant
Commercial and data protection terms
• Fees based on time, complexity, and responsibility, plus VAT and expenses
• Fees reviewed periodically
• Compliance with UK GDPR and Data Protection Act 2018
• Secure handling, storage, and processing of personal data
• Working papers retained for the statutory period (normally six years)
Legal and regulatory compliance
• Engagement governed by the laws of England and Wales
• Terms updated where legislation changes
• Directors responsible for compliance with criminal law
• Mandatory reporting of offences where required
• Compliance with the Money Laundering Regulations 2017
• Reporting of suspicious activity to the NCA where applicable
• Verification of directors and beneficial owners
Acceptance is confirmed by directors’ signature and remains valid until varied in writing.
Letter of Representation – United Kingdom (Company Template)
The UK Letter of Representation provides formal written confirmation from directors regarding the completeness and accuracy of the financial statements prepared under FRS 102 or FRS 105.
Director confirmations include:
• Financial information is complete, accurate, and prepared in accordance with applicable standards
• The company meets audit exemption criteria
• Full compliance with GDPR and Data Protection legislation
• All records, documents, and explanations have been provided
• No known or suspected fraud affecting the company
• Compliance with all applicable laws and regulations
• All contingent liabilities have been identified and disclosed
• The company is a going concern for the foreseeable future
• Proper title is held to all recorded assets
• All relevant post-reporting date events have been disclosed with no undisclosed obligations
• The company is a going concern for at least 12 months
• Valid title to all recorded assets with no undisclosed charges
• All relevant post year-end events have been disclosed
LLP Templates – Letters of Engagement and Representation
The same updates have been applied to the Letters of Engagement and Letters of Representation for LLP templates, ensuring consistency of wording, compliance coverage, and professional standards across entity types.
Users should review and tailor all letters to reflect the specific engagement terms before issuing them to clients.