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The Personal Financial Statement Engagement Letter is a crucial document in Canadian accounting practice that establishes the professional relationship between a Chartered Professional Accountant (CPA) and their client. This document is required when a CPA is engaged to prepare or review personal financial statements, which may be needed for various purposes such as loan applications, investment planning, or estate planning. The letter ensures compliance with CPA Canada Handbook standards, PIPEDA privacy requirements, and other relevant Canadian regulations. It clearly delineates the scope of services, limitations, responsibilities, and professional standards to be followed, while protecting both the practitioner and client's interests. Such engagement letters are particularly important in personal financial matters due to the sensitive nature of the information involved and the potential reliance on these statements by third parties.

1. Letterhead and Date: CPA firm's letterhead, including contact information and professional designations, and current date

2. Client Address Block: Full name and address of the client

3. Purpose of Engagement: Clear statement of the purpose of preparing personal financial statements and the intended use

4. Scope of Services: Detailed description of what services will be provided, including the time period covered and the nature of the engagement

5. Professional Standards Reference: Reference to applicable professional standards and frameworks being followed

6. Management Responsibilities: Client's responsibilities including providing accurate information and maintaining records

7. Practitioner Responsibilities: CPA's responsibilities and limitations of the engagement

8. Fee Structure: Details of fees, billing arrangements, and payment terms

9. Timeline: Expected completion dates and important deadlines

10. Confidentiality Statement: Privacy and confidentiality commitments, including references to PIPEDA compliance

11. Signature Block: Space for both parties to sign and date the engagement letter