Final answer:
The purpose of an engagement letter is to define the terms and conditions of a business engagement. Not all engagement letters are the same, as they can vary depending on the nature of the engagement.
Step-by-step explanation:
The purpose of an engagement letter in the business context is to clearly define the scope of work, responsibilities, and expectations between the service provider (such as a consultant or accountant) and the client. It serves as a contract between the two parties, outlining the terms and conditions of the engagement.
Engagement letters are not all the same, as they can vary depending on the specific nature of the engagement or project. For example, an engagement letter for a consulting project may include different details compared to an engagement letter for an audit engagement. However, there are certain common elements that most engagement letters should include, such as the objectives of the engagement, the fee structure, the duration of the engagement, and the process for terminating the engagement.