Letter of Engagement

7/23/2019 Letter of Engagement

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<Assumptions:

ProvisionofAdvisoryServicesto<Client>

We set out below the terms of the engagement of your firm to provide advisory services

(“the services”) in connection with the review of the finance function service delivery

models for <Client> as discussed at our meeting with Peter ergerac last wee!" #ny wor!

performed in connection with the engagement before the date of this letter will also begoverned by the terms and conditions of this letter"

Scope of the work

$ur scope is to provide independent and ob%ective advice to <Client> management around

the service delivery model and options for the following management functions performed

by each in&scope country'

inancial unctions'

• #ccounts Payable

•

#ccounts eceivable• *eneral +edger

• $ptimi,ing treasury $perations

o Cost of materials- total sales

o .ar!eting e/penses - total sales

o Personnel e/penses - total sales

$perational unctions'

• 0upply Chain .anagement

• $perations Cost reduction

•

Procurement optimi,ation model• 1valuating the option of outsourcing to third party

$ther areas where we would provide our solutions include'

• Pros-Cons of centrali,ing the ma%or functions to achieve standard operations

• 1/pansion strategy into #sia Pacific

• 0trategy to improve the online presence of <Client>

• $ptimi,ing the sales channel and its management"

2he review of countries and operations covered by this engagement include'

• *ermany

• rance

• elgium

• Corporate (Western 1urope 0ub region3based in +u/embourg)

• #sia&Pacific



4ue to the confidential nature of this engagement we will be limiting our information

collection to a face&to&face interview with the <Client> inancial Controller5 $perations

Controllers and other members as re6uired in each in&scope country and in Corporate5 plus

a series of wor!shops (topics to be a greed)"We will also review relevant documentation

which 7s already in e/istence in relation to the e/isting operations"

#ny agreed changes to the scope of our wor! as the engagement progresses will be

recorded in writing and will be sub%ect to the terms set out in this letter"

2he procedures we will use to perform the wor! set out in this engagement letter will not

constitute an auditor review made in accordance with any generally accepted auditing

standards"

2. <Client>’sresponsibilities

8our firm will not pursuant to this #greement5 perform any management functions for

<Client> nor ma!e any management decisions" <Client> understands and agrees that

pursuant to this #greement5 <Client>9s responsibilities include the following'•4esignating a management level individual or individuals to be responsible for

overseeing the 0ervices being provided5 evaluating any findings or recommendations5

establishing and maintaining internal controls5 and monitoring ongoing activities:

•1valuating the ade6uacy of the 0ervices performed and any findings that result:

•.a!ing management decisions5 including accepting responsibility for the results of the

0ervices:

•Where your firm is wor!ing on an element of<Client>9s pro%ect5 <Client>retains

responsibility for satisfactory completion of the entire pro%ect:

•Providing access to <Client> locations and personnel as re6uired by your firm:

•

Warranting that your firm9s use of e6uipment or other property belonging to <Client> doesnot infringe on intellectual property rights of5 or license agreements with5 any third party:

•Providing ade6uate resources for your firm to carry out the wor! :and

•Providing representations in writing as re6uired by your firm"

3. Deliverables

2he following will be our deliverables from this engagement'

• ollowing completion of our wor! we shall provide a written report to the directors of

<Client>on our findings" 2he information will be categori,ed under the following

headings'

o 1/ecutive summaryo 0ervice delivery model options

o 0ummary of sta!eholder comments and feedbac! from interviews and wor!shops

o Pros-Cons-is! of each option

o .anagement considerations

o 0ources of information

•We will provide a one hour presentation of our findings to the directors of<Client>"

•We will provide wee!ly pro%ect status reports by ;"pm on riday of each wee! to the

<Client> pro%ect manager"



7n the event that wor! performed by your firm includes any involvement in the

preparation5 consideration or review of <Client> management reports5 presentations or

other documents5 <Client> will retain responsibility for the man their preparation"

We will indicate within our report the sources of the information presented and will satisfy

ourselves5 so far as possible5 that the information presented is consistent with other

information which is made available to us in the course of our wor! in accordance with theterms of this engagement letter" We will not5 however5 see! to establish the reliability of the

sources by reference to other evidence5 e/cept as may be specifically agreed in writing

between us"

Letter of Engagement

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Transcript of Letter of Engagement