CPA Firm Engagement Letter AI Disclosure Clauses

Three versions — from minimal reference to full client consent for document-processing AI.

Managing partners and administrative leaders at CPA firms updating engagement letter templates in response to AICPA guidance, state CPA society recommendations, or client requests for transparency about AI use on their files.

CPA firms using AI know they should probably say something to clients — but what to say depends on how AI is being used, and the wrong language creates either under-disclosure (leaving confidentiality exposure) or over-disclosure (creating unnecessary client anxiety about AI replacing human judgment).

Three ready-to-use engagement letter clause versions with guidance on when to use each: Version A (standard disclosure for AI-assisted efficiency tools with data protection assurances), Version B (explicit consent for AI that processes client-provided documents), and Version C (minimal reference for administrative AI only). Plus post-engagement documentation guidance.