pf-engagement-letters — Engagement Letter Generator for CPAs

Important: All documents generated by this plugin are drafts intended as starting points. Engagement letters and professional service agreements should be reviewed by a qualified CPA or attorney before sending to clients. Standards and regulations vary by jurisdiction.

v1.1 — Now with AICPA/SSARS/SAS professional standards compliance, Circular 230 disclosures, IRC §7216 taxpayer consent, and 39 authoritative standard citations across all engagement types.

Generate customized engagement letters, fee schedules, and scope limitation documents for accounting firm clients in minutes — as an alternative to Ignition at $0 cost with professionally structured professional standards compliance.

Quick Start

1. Setup: Run /engagement-letters:engagement-letters-setup to initialize the plugin
2. Gather: Run /engagement-letters:engagement-letters-gather to provide client information
3. Generate: Run /engagement-letters:engagement-letters-generate to create engagement letter
4. Fee Schedule: Run /engagement-letters:engagement-letters-fee-schedule for fee document
5. Scope Doc: Run /engagement-letters:engagement-letters-scope for scope limitations
6. Or run everything: /engagement-letters:engagement-letters-full-pipeline

Output Location: All documents appear in outbound/ ready to send to clients or sign via DocuSign

What This Plugin Does

This plugin is an alternative to Ignition's core workflow: generating engagement letters, fee schedules, and scope limitation documents for CPA clients. Instead of $588-2,388/year, you get free, fully customizable documents that processed within the Cowork environment — with professional standards compliance built in.

Core Features

• Standards-Compliant Letter Generation: Creates engagement letters with AICPA/SSARS/SAS-specific scope language for audit (AU-C §210), review (AR-C §90), compilation (AR-C §80), tax (Circular 230), and advisory engagements
• Fee Schedule Documents: Generates itemized fee breakdowns with Circular 230 §10.27 contingent fee restriction validation
• Service Scope & Limitations: Creates scope documents with authoritative exclusion citations per engagement type
• Annual Renewal Letters: Updates prior year letters with AICPA QC §10.27 client continuance evaluation
• Client Acceptance Workflow: AICPA-compliant intake with client integrity assessment and AML awareness
• Compliance Status Tracking: Dashboard showing standards compliance across all engagements
• Batch Processing: Process multiple clients with full compliance sections in each letter
• Customizable Templates: All DOCX templates editable in Microsoft Word

Who Is This For?

• Solo CPAs and bookkeepers (1-20 person firms)
• Accountants who currently use Ignition and want to reduce annual costs
• Firms that want full control over engagement letter templates with professional standards built in
• Anyone who values data privacy (documents processed within the Cowork environment, never touch the cloud)

What You Don't Get (Compared to Ignition)

• No built-in e-signature: You send generated letters to your existing DocuSign or HelloSign account
• No real-time practice management integration: Copy generated documents to QuickBooks/Karbon manually
• No team real-time collaboration: One person generates the letter, others review in Word before sending
• No client portal: Use your existing practice management system or email

These exclusions keep the plugin focused and maintainable.

How Much Does It Cost?

Plugin: included with your subscription (free, proprietary) Per-document generation: ~$0.05-0.15 if you use Claude API. Cowork Desktop users are not charged per-token. Compare to Ignition: $588-2,388/year + per-user licenses + implementation time.

Feature Comparison

Feature	pf-engagement-letters	Ignition	CPA.com	Canopy
Engagement letter generation	✓	✓	✓	✓
Fee schedule	✓	✓	✓	~
Scope limitations	✓	✓	~	~
Annual renewal letters	✓	✓	~	✗
AICPA/SSARS/SAS standards compliance	✓	~	✗	✗
Circular 230 disclosure auto-include	✓	~	✗	✗
IRC §7216 taxpayer consent	✓	~	✗	✗
Management responsibilities (AU-C/AR-C)	✓	~	✗	✗
Contingent fee restriction validation	✓	✗	✗	✗
Client acceptance evaluation (QC §10.27)	✓	✗	✗	✗
Compliance tracking dashboard	✓	~	✗	✗
Professional liability limitation clauses	✓	✓	~	~
Record retention policy (IRC §6501)	✓	✗	✗	✗
Customizable templates	✓	~	✗	✗
Data stays local (no cloud)	✓	✗	✗	✗
Cost	included	$588-2,388/yr	$2,400+/yr	$1,200-4,800/yr
Built-in e-signature	✗	✓	✓	✓
PMS integration	✗	✓	✓	✓
Team collaboration	✗	✓	✓	✓

AI-Powered Features

1. AICPA Standards-Based Scope Language: Generates engagement letters with correct professional standards citations — AU-C §210 for audit, AR-C §90 for review, AR-C §80 for compilation, AR-C §70 for preparation, AT-C §215 for agreed-upon procedures
2. Automatic Circular 230 Disclosure: Includes IRS Circular 230 disclosure (31 CFR §10.35) on all tax-related letters automatically
3. IRC §7216 Taxpayer Consent: Auto-generates federal taxpayer consent section for tax preparation engagements
4. Management Responsibilities Sections: Adds engagement-type-specific management responsibilities per AU-C §210.06(b), AR-C §90.11(b), or AR-C §80.10(b)
5. Contingent Fee Restriction Validation: Validates fee structures against Circular 230 §10.27 and AICPA ET §1.510 — blocks prohibited contingent fees
6. Client Acceptance Evaluation: Prompts AICPA QC §10.27 client integrity and risk assessment before adding new clients
7. Anti-Money Laundering Awareness: FinCEN BSA awareness checks during client intake
8. Professional Liability Limitation: State-jurisdiction-aware liability cap clauses
9. Record Retention Policy: Includes IRC §6501 statute of limitations references (3-year standard, 6-year for 25%+ omission, unlimited for fraud)
10. Dispute Resolution Clauses: Mediation-first, AAA arbitration backup
11. Peer Review Disclosure: Auto-includes AICPA PR §100 disclosure for enrolled firms
12. IRC §6694 Penalty Awareness: Tax scope narratives reference reasonable basis / substantial authority standards
13. Independence Evaluation Reminders: ET §1.200 independence checks for attest engagements
14. Annual Standards Version Tracking: Tracks current SSARS/SAS/Circular 230 versions for annual review
15. Client Continuance Evaluation: QC §10.27 annual client continuance prompts during renewals
16. Compliance Status Dashboard: Tracks Circular 230, §7216, management responsibilities, and client acceptance across all engagements
17. Standards-Based Exclusions: Scope documents cite specific section numbers for each exclusion basis
18. Engagement Type Classification: Automatic mapping of service types to governing professional standards frameworks
19. Fee Schedule Generation: Itemized fee breakdowns with fixed, hourly, and contingent fee structures
20. Annual Renewal with Compliance Refresh: Renewal letters include all refreshed compliance sections for the new period
21. Batch Renewal Processing: Generate compliant renewal letters for all clients at once
22. Template Customization: DOCX templates editable in Word with professional standards sections preserved

Commands

• /engagement:engagement-full — name: engagement-full
• /engagement:engagement-generate — name: engagement-generate
• /engagement:engagement-intake — name: engagement-intake
• /engagement:engagement-letters-fee-schedule — name: engagement-letters-fee-schedule
• /engagement:engagement-letters-full-pipeline — name: engagement-letters-full-pipeline
• /engagement:engagement-letters-gather — name: engagement-letters-gather
• /engagement:engagement-letters-generate — name: engagement-letters-generate
• /engagement:engagement-letters-renewal — name: engagement-letters-renewal
• /engagement:engagement-letters-scope — name: engagement-letters-scope
• /engagement:engagement-letters-setup — name: engagement-letters-setup
• /engagement:engagement-letters-status — name: engagement-letters-status
• /engagement:engagement-renew — name: engagement-renew
• /engagement:engagement-run — name: engagement-run
• /engagement:engagement-setup — name: engagement-setup
• /engagement:engagement-status — name: engagement-status

Limitations & Workarounds

Architectural Constraints

No Real-Time API Integrations

• Can't automatically sync to QuickBooks, Karbon, or other PMS
• Workaround: Generate DOCX files; upload to your PMS manually

No Native E-Signature

• Plugin generates the letter; you send to DocuSign/HelloSign
• Workaround: Copy to your existing e-signature platform

No Persistent Database

• Client info stored as local files
• Workaround: Keep local engagement history; plugin reads prior letters for renewals

No Multi-User Collaboration

• One person generates; others review in Word
• Workaround: Suitable for small-team firms

Installation

1. Copy the pf-engagement-letters folder to your Cowork plugins directory
2. Restart Cowork
3. Run /engagement-letters:engagement-letters-setup to initialize

Legal & Compliance Notes

IMPORTANT: This plugin generates engagement letters based on AICPA professional standards and IRS requirements. While it includes authoritative standard citations (AU-C, AR-C, AT-C, Circular 230, IRC), all output should be reviewed by your firm's attorney before first use with a new engagement type.

Professional standards are updated annually. The plugin tracks standards versions (SSARS 25, SAS 145) — verify citations are current when standards are updated.

State-specific requirements may impose additional obligations not covered by the AICPA national standards. Review your state board's rules.

Support & Feedback

This plugin is maintained by the Plugin Factory community. For issues, questions, or suggestions:

• Report Bugs: Submit issues with details about what broke
• Suggest Features: Request new capabilities (keep scope focused on engagement letters)
• Share Templates: Contribute customized templates for specific firm types or practice areas

Estimated Cost per Use

Disclaimer: Token estimates are approximate and based on typical usage patterns measured from skill prompt sizes. Actual costs vary with input data size, conversation length, and complexity. Estimates use Claude Sonnet 4.6 pricing ($3/1M input, $15/1M output). Cowork and Claude Desktop subscription users (Pro/Max/Team) are not charged per-token — these estimates apply only to direct Anthropic API usage. Running stages individually in fresh sessions uses fewer input tokens than running the full pipeline sequentially, because pipeline mode accumulates conversation history across stages.

Per skill (run individually in a fresh session):

Stage	Skill Prompt	User Input	Total Input	Output	Est. Cost
engagement-letters-generate	~4.2K	~800	~7.9K	~6.0K	~$0.11
engagement-letters-gather	~1.5K	~800	~5.1K	~3.0K	~$0.06
engagement-letters-fee-schedule	~1.4K	~800	~5.1K	~3.0K	~$0.06
engagement-renew	~968	~800	~4.8K	~3.0K	~$0.06
engagement-intake	~924	~800	~4.6K	~3.0K	~$0.06
engagement-letters-scope	~2.8K	~800	~6.5K	~3.0K	~$0.06
engagement-letters-renewal	~1.5K	~800	~5.2K	~3.0K	~$0.06
engagement-generate	~10.5K	~800	~14.2K	~6.0K	~$0.13
Standalone total			~53.5K	~30.0K	~$0.61

Full pipeline (all stages in one session — context accumulates):

Stage	Base Input	+ History	Total Input	Output	Est. Cost
engagement-letters-generate	~8.2K	0	~8.2K	~6.0K	~$0.11
engagement-letters-gather	~5.4K	~6.8K	~12.2K	~3.0K	~$0.08
engagement-letters-fee-schedule	~5.4K	~10.6K	~16.0K	~3.0K	~$0.09
engagement-renew	~4.9K	~14.4K	~19.3K	~3.0K	~$0.10
engagement-intake	~4.9K	~18.2K	~23.1K	~3.0K	~$0.11
engagement-letters-scope	~6.7K	~22.0K	~28.7K	~3.0K	~$0.13
engagement-letters-renewal	~5.4K	~25.8K	~31.2K	~3.0K	~$0.14
engagement-generate	~14.4K	~29.6K	~44.0K	~6.0K	~$0.22
Pipeline total			~182.6K	~30.0K	~$1.00

Running the full pipeline once typically costs $0.70–$1.30 in API tokens (Claude Sonnet 4.6).

Important Disclaimers

• AI-Generated Content: This plugin uses AI (LLM) technology which can produce inaccurate or incomplete outputs. All content should be treated as a starting point and reviewed for accuracy before use.
• Not Professional Advice: Outputs do not constitute legal, financial, tax, medical, or other professional advice. Consult qualified professionals before making decisions based on generated content.
• No Compliance Guarantee: References to industry standards, regulations, or guidelines are for informational purposes only. This plugin does not guarantee compliance with any law or regulation. Users are responsible for verifying all outputs meet their specific regulatory requirements.
• No Endorsement or Affiliation: Mention of third-party products, standards, or organizations does not imply endorsement, partnership, or certification by those entities.
• Not Legal Advice: This plugin does not provide legal services or legal advice. All legal documents and analysis should be reviewed by a licensed attorney before use.