Document background
The Accounting Engagement Letter is a fundamental document required by Canadian professional accounting standards to formalize the relationship between accounting professionals and their clients. This document is typically used at the beginning of any new accounting engagement or when there are significant changes to existing service arrangements. It serves multiple purposes: establishing the scope of services to be provided, setting clear expectations for both parties, outlining fee structures, and ensuring compliance with provincial accounting regulations and federal privacy laws. The letter must align with requirements set forth by provincial Chartered Professional Accountant (CPA) bodies and incorporate necessary elements for professional liability protection. It's particularly important in Canadian business contexts where multiple jurisdictions may be involved, and specific provincial requirements must be addressed.
