Terms of Engagement
This information is to confirm our understanding of the terms of our general client engagements and the nature and limitations of the services that we provide. This information is relevant to all non-audit engagements where no specific client engagement letter is provided.
Purpose, Scope and Output of the Engagement
This firm will provide Accounting and/or taxation and/or business advisory services as agreed, which will be conducted in accordance with the relevant professional and ethical standards issued by the Accounting Professional & Ethical Standards Board Limited (APESB). The extent of our procedures and services will be limited exclusively for this purpose only. As a result, no audit or review will be performed and, accordingly, no assurance will be expressed. Our engagement cannot be relied upon to disclose irregularities including fraud, other illegal acts and errors that may exist. However, we will inform you of any such matters that come to our attention.
Any reports including Financial Statements, Income Tax Returns etc, will be prepared for distribution to the specific organisation, client or entity for the purpose specified in the report. There is no assumption of responsibility for any reliance on our report by any person or entity other than yourself and those parties indicated in the report. The report shall not be inferred or used for any purpose other than for which it was specifically prepared. Accordingly, our report may include a disclaimer to this effect.
ResponsibilitiesIn conducting this engagement, information acquired by us in the course of the engagement is subject to strict confidentiality requirements.
That information will not be disclosed by us to other parties except as required or allowed for by law, or with your express consent.We wish to draw your attention to our firm’s system of quality control which has been established and maintained in accordance with the relevant APESB standard. As a result, our files may be subject to review as part of the quality control review program of the Institute of Chartered Accountants in Australia which monitors compliance with professional standards by its members.
We advise you that by accepting our engagement you acknowledge that, if requested, our files relating to this engagement will be made available under this program. Should this occur, we will advise you.Clients are required to arrange for reasonable access by us to relevant individuals and documents, and shall be responsible for both the completeness and accuracy of the information supplied to us.
Our obligation to comply with the lawWe have a duty to act in your best interests. However, the duty to act in your best interests is subject to an overriding obligation to comply with the law even if that may require us to act in a manner that may be contrary to your interests. For example, we could not lodge an income tax return for you that we knew to be false in a material respect.
ConfidentialityWe will not disclose any information relating to your affairs to any third party without your consent, unless required by law. You may provide us with permission to disclose your confidential information in certain circumstances, or place conditions on the disclosure of certain confidential information. If you do so, we will have permission to disclose the relevant information accordingly, in the performance of our services, unless you instruct us otherwise in writing.
Fees and Billing ArrangementsThe fee arrangement is based on the expected amount of time and the level of staff required to complete the requested service.
This fee arrangement may be subject to change if any circumstances come to our attention which may have an impact upon the scope of work.
Should this occur we will advise you before commencing the additional work.
Annual tax return fees do not include taxation advice or other services provided during the year.
Ad hoc taxation advice and other services provided during the year via phone and email will be invoiced at the current advice rate.
All fees are subject to an annual review and will be increased annually as required.
Ownership of DocumentsAll original documents obtained from you arising from the engagement shall remain your property. However, we reserve the right to make a reasonable number of copies of the original documents for our records.We will forward you copies of financial statements and income tax returns which are prepared on your behalf.Ownership of these documents will vest in you. All other documents produced by us in respect of this engagement will remain the property of the firm.
Limitation of LiabilityOur liability may be limited by a scheme approved under Professional Standards Legislation.
Further information on schemes is available from the Professional Standards Council – http://www.professionalstandardscouncil.gov.au/
Taxation Services SpecificallyIn engaging us to provide taxation services, it is important for you to understand that:• You are responsible for the accuracy and completeness of the particulars and information provided to us by you.• Any advice we provide is only an opinion based on our knowledge of your particular circumstances.• You have obligations under the self-assessment regime to keep full and proper records in order to facilitate the preparation of accurate returns.You must provide all information and documents relevant to the proper performance of the work at the outset of the engagement and during the engagement.
This includes promptly advising us of anything that occurs subsequently to render information already provided misleading or incomplete, or advising of any change in your circumstances relevant to the work.
If during the engagement you become aware of any conflict of interest or potential conflict of interest or there is a change of circumstances which may result in a conflict, you must advise us.
Events which may give rise to a conflict of interest or potential conflicts during the engagement include events affecting you, such as deaths, matrimonial disputes as well as litigation (threatened or actual) or changes in the nature or structure of your business or your business relationships.
There are provisions in the Taxation Administration Act 1953 that provide you (as from 1 March, 2010) with “safe harbours” from administrative penalties for incorrect or late lodgment of returns if, among other things, you give us “all relevant taxation information” in a timely manner.
This means that it is to your advantage to give us all information necessary for us to do the work.
While the work is within our knowledge and skills, any changes to the work may necessitate making new arrangements with you.
You must provide all information and documentation which we should take into account in applying the taxation laws.
Any failure by you to provide all such information and documentation, both voluntarily and in answer to our questions, may affect your ability to access the safe harbour provisions and will be taken into account when assessing our obligations under the law.
Our obligations under this principle are also limited to the extent of any disclosure by us in this letter of specific specialties, skills, or lack thereof, or other limitations.
Subject to the law, we must not disclose any information relating to your affairs to a third party without your consent.
The taxation laws confer on you certain rights (such as to obtain a private ruling, challenge a decision of, or an assessment issued by, the ATO) but also impose obligations on you (such as the keeping and retaining of adequate and accurate records and the filing of relevant returns with the ATO within the required time limits).
Acceptance of these termsThese terms apply to our relationship with you.
There is no need for you to sign these terms of engagement in order to accept them; you will accept them by continuing to instruct us to work for you.
If these terms of engagement are inconsistent with any other written agreement we have made with you, whether generally or in respect of a specific instruction, then that other agreement prevails over these terms.