Auto enrolment came into force in January 2026 for firms providing payroll services and this new development along with the fact that more firms are using artificial intelligence (AI) in their day-to-day work means that engagement letter terms may need an urgent review. Both these developments are just some of the changes in practice that can cause existing letters of engagement to become out of date or no longer relevant.
Firms should consider whether the terms/conditions in the letters of engagement with clients need up-to-date clauses or paragraph explaining the firm’s use of artificial intelligence in its work and that deal with auto enrolment responsibilities when payroll services are provided.
Regarding AI especially, clear wording on how AI may be used and obtaining written client consent to that use is important and may help keep engagement terms current and transparent for accountancy clients.
All our engagement letter templates have been updated for the use of AI and payroll engagement letters include a relevant auto enrolment terminology. These templates are now available to download in Word format at www.jmcc.ie and are priced at €70 each, plus VAT.
Depending on your requirements, we can also tailor other types of template letter to order. If you need a specially tailored template, please send an e-mail to john@jmcc.ie and you will receive a quotation. Once agreed we will deliver your template within a specified time limit.
If you would like to update your engagement letters, visit www.jmcc.ie to download a template or contact us about a tailored version for your firm.
There is also a search bar near the bottom of our home page (www.jmcc.ie) to quickly look up the item you need. More details see https://jmcc.ie/publications-store/
For those of you still in the process of ISQM 1 implementation, please see our ISQM TOOLKIT or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard, please call or e-mail John McCarthy FCA or e-mail him at john@jmcc.ie.
We typically tailor training and brainstorming sessions to suit each firm’s unique requirements.
Publications and AML webinar:
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- The ISQM TOOLKIT 2022 is available to purchase here.
- See our latest Anti-Money Laundering Policies Controls & Procedures Manual (March 2022) – View the Table of Contents click here.
- Also we have an updated AML webinar (March 2022) available here, which accompanies the AML Manual. It explains the current legal AML reporting position for accountancy firms and includes a quiz. Upon completion, you receive a CPD Certificate of attendance in your inbox.
- To ensure your letters of engagement and similar templates are up to date visit our site here where immediate downloads are available in Word format. A bulk discount is available for orders of five or more items if bought together.
