Dear [Partner's Name], I have reviewed the request for proposal (RFP) from the potential client and the engagement acceptance checklist provided. However, I must disclose a potential conflict of interest that may affect our firm's ability to accept this engagement. My sister-in-law is the Chief Financial Officer (CFO) of the company requesting the proposal. She oversees most of the audit work and is also involved in the general audits for the company. This relationship could potentially compromise our independence, which is a fundamental requirement for an audit engagement. According to the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct, auditors must maintain independence in fact and appearance when conducting audits. This means that auditors must not only be independent, but they must also appear to be independent to third parties. Having a close family member in a key financial reporting oversight role at the client could be perceived as impairing our independence. Therefore, based on the AICPA Code of Professional Conduct and our firm's commitment to uphold the highest standards of professionalism and integrity, I recommend that we decline this engagement. This will help us avoid any potential conflicts of interest and maintain our firm's reputation for