Sending out client engagement letters? Consider including language relating to electronic data and digital currencies

Do you store data in the cloud and/or e-file your clients’ returns? Do your clients deal with virtual currencies? Here’s some language to consider including in your engagement letters courtesy of CTCPA member John F. Raspante of CPA Protector Plan:

Electronic Data Communication and Storage

In the interest of facilitating our services to your company, we may send data over the Internet, store electronic data via computer software applications hosted remotely on the Internet, or allow access to data through third-party vendors’ secured portals or clouds. Electronic data that is confidential to your company may be transmitted or stored using these methods. We may use third-party service providers to store or transmit this data, such as providers of tax return preparation software. In using these data communication and storage methods, our firm employs measures designed to maintain data security. We use reasonable efforts to keep such communications and data access secure in accordance with our obligations under applicable laws and professional standards. We also require all of our third-party vendors to do the same.
You recognize and accept that we have no control over the unauthorized interception or breach of any communications or data once it has been sent or has been subject to unauthorized access, notwithstanding all reasonable security measures employed by us or our third-party vendors. You consent to our use of these electronic devices and applications and submission of confidential client information to third-party service providers during this engagement.

Digital Currency

Did you mine, buy, sell, or exchange a virtual currency, use a virtual currency to pay for goods or services, or receive a virtual currency as payment for goods and services? Be sure to let us know.