Peer Review

[tranquility]

What is the name of your state (only U.S. law)? CA

I've got to complete the firm's peer review process. One aspect of peer review has to do with engagement letters. In continuing education, it seems many problems with engagement letters really get to be quite picayune; including having started work before a signed engagement letter is received. The question is, would a faxed copy of a signed engagement letter be valid?

To prevent frolic and detour, accept the purpose of an engagement letter is to create a contract to make financial reports. In the cases I'm talking about, a compilation. (As compared to a review or an audit.) The Uniform Electronic Transactions Act is in effect in California (Civil Code sections 1633.1 et seq.) and it would seem to indicate that the faxed copy is good as a "signature". However, I have one caveat in accepting that, Section 1633.3(c) which says:

(c) This title does not apply to any specific transaction
described in Section 17511.5 of the Business and Professions Code,
Section 56.11, 56.17, 798.14, 1133, or 1134 of, Sections 1350 to
1376, inclusive, of, Section 1689.6, 1689.7, or 1689.13 of, Chapter
2.5 (commencing with Section 1695) of Title 5 of Part 2 of Division 3
of, Section 1720, 1785.15, 1789.14, 1789.16, 1789.33, or 1793.23 of,
Chapter 1 (commencing with Section 1801) of Title 2 of Part 4 of
Division 3 of, Section 1861.24, 1862.5, 1917.712, 1917.713, 1950.5,
1950.6, 1983, 2924b, 2924c, 2924f, 2924i, 2924j, 2924.3, or 2937 of,
Article 1.5 (commencing with Section 2945) of Chapter 2 of Title 14
of Part 4 of Division 3 of, Section 2954.5 or 2963 of, Chapter 2b
(commencing with Section 2981) or 2d (commencing with Section 2985.7)
of Title 14 of Part 4 of Division 3 of, or Section 3071.5 of, the
Civil Code, subdivision (b) of Section 18608 or Section 22328 of the
Financial Code, Section 1358.15, 1365, 1368.01, 1368.1, 1371, or
18035.5 of the Health and Safety Code, Section 662, 663, 664, 667.5,
673, 677, 678, 678.1, 786, 10086, 10113.7, 10127.7, 10127.9,
10127.10, 10197, 10199.44, 10199.46, 10235.16, 10235.40, 10509.4,
10509.7, 11624.09, or 11624.1 of the Insurance Code, Section 779.1,
10010.1, or 16482 of the Public Utilities Code, or Section 9975 or
11738 of the Vehicle Code. An electronic record may not be
substituted for any notice that is required to be sent pursuant to
Section 1162 of the Code of Civil Procedure. Nothing in this
subdivision shall be construed to prohibit the recordation of any
document with a county recorder by electronic means.

Now, while I know I can go through each referenced section to see if it would apply here, I'd really rather not. I mean, I can eliminate some as it would not be in the H&S or the Vehicle code, but some others may apply. Does anyone know, or am I going to have to burn an hour or two (Or more, depending.) reading statutes tomorrow?

 

[las365]

I'll venture that your company's policy regarding signed engagement agreements rules in regard to employees' performance, regardless of the letter of the law. If the firm has or wants to have a policy that a fax of the signed engagement is sufficient to begin work and take the risk that if the client never provides the original and then disputes that the agreement is valid, it can do so. If the firm's policy is that work shall not begin until the original signed agreement is in hand, so be it.


Are you charged with formulating the policy? At first I thought you were actually doing reviews, then that you are creating the process.

 

[tranquility]

Thank you for your thoughts. They help me focus on my question. Certain professionals require a "peer review" to maintain their ability to maintain their license to do certain acts. Part of that review is how they accept engagements. One requirement of an engagement is the contract (or engagement letter) when agreeing to the job. Since many of the covered engagements are relied upon by others, certain rules are in effect. I'm dealing with government demands, not internal employee demands.