Document background
The Due Diligence Engagement Letter is a fundamental document used in professional services contexts across Canada to formally establish the terms of a due diligence assignment. It serves as the primary agreement between professional service firms (such as accounting, consulting, or law firms) and their clients when undertaking detailed investigations of business opportunities, transactions, or operational reviews. The document is essential in Canadian business practice as it defines the scope of work, methodologies, timelines, and deliverables while incorporating necessary provisions to comply with Canadian regulatory requirements, professional standards, and privacy laws. This letter typically precedes significant corporate transactions, investments, or strategic decisions and provides crucial protection for both service providers and clients by clearly defining expectations, limitations, and responsibilities.
