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A Personal Financial Statement Engagement Letter is a crucial document used when an accounting professional or firm is engaged to prepare, compile, or review an individual's personal financial statements in Australia. This document is typically required when individuals need formal financial statements for purposes such as loan applications, estate planning, divorce proceedings, or business transactions. The engagement letter ensures compliance with Australian professional standards, including APES 110 and relevant legislation, while clearly defining the scope of services, methodologies to be used, and respective responsibilities of the parties involved. It serves as a formal agreement that protects both the professional service provider and the client by establishing clear expectations, deliverables, and terms of service.

1. Letterhead and Date: Professional letterhead with firm details and current date

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

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

4. Scope of Services: Detailed description of what services will be provided and any limitations

5. Professional Standards: Reference to applicable professional standards and methodologies

6. Client Responsibilities: Outline of information and cooperation required from the client

7. Our Responsibilities: Description of the firm's responsibilities and deliverables

8. Timeframe: Expected timeline for service delivery and reporting

9. Fees and Payment Terms: Fee structure, billing arrangements, and payment terms

10. Confidentiality: Privacy and confidentiality commitments and obligations

11. Limitation of Liability: Professional liability limitations and disclaimers

12. Termination: Conditions and process for ending the engagement

13. Acceptance: Signature blocks and acceptance confirmation