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:

1. Accepting an engagement.
2. Managing professional liability.
3. Agreeing on the terms of the engagement.
4. 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.

• Download AAF 04/06 in full.

ICAEW provides more general guidance for accountants to manage their risk of potential liability because of an act or omission resulting in financial loss.

• Access general ICAEW guidance on managing the professional liability of accountants.

Page reviewed April 2018. Next review due April 2019.