ENGAGEMENT LETTER
Purpose
The purpose of this Engagement Letter is to set out and confirm the terms of engagement between our firm and you. This Engagement Letter aligns with the requirements of the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) and APES 305 Terms of Engagement, as published by the Accounting Professional and Ethical Standards Board.
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​​Our Firm
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We are a Professional Accounting firm and our Directors are all members of the Institute of Chartered Accountants Australia and New Zealand (CA ANZ). We are committed to maintaining the highest professional, ethical and quality standards in delivering our services to you.
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Objectives
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The objectives of this engagement are to perform accounting and taxation services for you and your associated entities, which may include (but are not limited to) the following:
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Preparation and lodgement of income tax returns
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Preparation of financial statements and management reports
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ASIC corporate secretarial and statutory compliance
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Payroll, bookkeeping and BAS/IAS lodgements
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SMSF compliance and administration
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General taxation, business and structuring advice
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Other accounting or advisory assignments agreed from time to time
Please note that we will not conduct an audit or review unless specifically stated above, and accordingly, no assurance will be expressed. Unless otherwise specified, this engagement cannot be relied upon to detect irregularities, including fraud, other illegal acts, or errors; however, we will inform you if any such matters come to our attention.
Recent changes to Section 225 (and 360) of APES 110 on Responding to Non-Compliance with Laws and Regulations (NOCLAR) require us to report non-compliance by you, your management, or those charged with governance. If disclosure to an appropriate authority is necessary, such disclosure will not breach our confidentiality obligations under our Code of Ethics.
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Scope
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This engagement will continue on an ongoing basis, unless terminated earlier in accordance with the termination clause below.
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Output
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Please note that the time required to perform our services is dependent on the quality, accuracy and completeness of the information and source documents you provide. Any delays or deficiencies in the information supplied may affect our ability to meet expected timeframes and may result in additional fees.
Any reports, including Financial Statements, Income Tax Returns or similar, will be prepared for distribution to you and for the purpose specified in the report only. We do not assume responsibility for any reliance on our reports by any person or entity other than you and those parties specifically indicated in the report. Accordingly, our reports may include a disclaimer to this effect.
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Know your customer
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We may be required to verify your identity for the purposes of the anti-money laundering laws. We may request from you such information as we require for these purposes and make searches of appropriate databases.
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Reliance on advice
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We will endeavour to record all advice on important matters in writing. Advice given verbally is not intended to be relied upon unless confirmed in writing. If we provide verbal advice (for example during a meeting or telephone conversation) that you wish to rely on, you must ask us to confirm the advice in writing.
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Professional Standards Scheme
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As a member firm of Chartered Accountants ANZ, we are covered by a Professional Standards Scheme, which limits our liability in accordance with applicable Professional Standards Legislation. More information is available at www.psc.gov.au.
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Your Responsibilities
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You are required by law to keep full and accurate records relating to your tax affairs. You must provide us with all information that would reasonably be expected to allow us to perform the services under this engagement. Inaccurate, incomplete or late information may materially affect our services and the reports we provide.
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Under the Taxation Administration Act 1953, you may be eligible for a “safe harbour” from administrative penalties for incorrect or late lodgement if you provide all relevant taxation information to us in a timely manner. Failure to do so may affect your ability to rely on this protection.
If we require information from a third party, we will first seek your approval.
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All information acquired by us during this engagement will be kept confidential, except as required or permitted by law, or with your express consent. We are bound by the Privacy Act 1988 to maintain all records securely and in accordance with the Act. Should you have any concerns about a privacy breach, you may contact the Office of the Australian Information Commissioner.
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Involvement of Others
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At times, we may outsource work or engage third parties to assist us. If we do, we will notify you and seek your approval first. This engagement is solely between you and us. You agree not to bring any claim against any third party we may engage, except where liability cannot be excluded by law.
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Fees and Billing Arrangements
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Our professional fees for the services we provide will be based on the time, skill and responsibility involved. Work will be charged at charge-out rates assigned to the various staff levels within our firm. In addition, we may recover out-of-pocket expenses and statutory charges incurred while carrying out this engagement.
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If we provide a fee estimate, it is indicative only. If actual costs vary due to unforeseen circumstances, delays, or incomplete documentation, we will discuss any variation with you and, if appropriate, issue an updated engagement letter.
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All invoices are payable within 14 days of issue. If an account remains unpaid after the due date, we may charge interest on the outstanding balance (calculated daily) and/or suspend further work—including the lodgement of returns—until the account is settled. Unless expressly stated otherwise, all fee estimates and invoices are exclusive of GST, and GST will be added where applicable.
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Confidentiality
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We will take all reasonable steps to keep your information confidential, except where:
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we need to disclose your information to our service providers (including auditors of client monies if applicable) or regulatory bodies in performing the services, our professional advisers or insurers or as part of an external peer review from time to time. Our files may also be subject to review as part of the quality review program of Chartered Accountants Australia and New Zealand. By accepting this engagement you acknowledge that, if requested, our files relating to this engagement will be made available under this program. We will take reasonable steps to ensure any such recipient (other than a regulatory body) keeps such information confidential on the same basis;
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we are required by law, regulation, a court of competent authority, or those professional obligations referred to in section 8 above, to disclose the information;
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we provide limited information (but only to the extent reasonably necessary) to potential purchasers (or their professional advisors) of our practice but we will take reasonable steps to ensure that any such recipient keeps the disclosed information confidential;
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We may retain your information during and after our engagement to comply with our legal requirements or as part of our regular IT back-up and archiving practices. We will continue to hold such information confidentially.
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Ownership of Documents
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Unless otherwise agreed, source documents such as ledgers, receipts, invoices and correspondence between you and the ATO remain your property. Working papers and documents prepared by us remain our property.
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Lien Over Documents
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If services are terminated, we may exercise a lien over certain documents we have prepared and will hold these documents until all outstanding fees have been paid or satisfactory arrangements are made.
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Complaints
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If you have any concerns about our costs or services, please speak to the person responsible for this engagement. To resolve your concerns, we have policies and procedures in place to deal appropriately with complaints and will use best endeavours to resolve a complaint or dispute to the mutual satisfaction of the parties involved. We may require you to detail your complaint in writing to allow us to fully investigate any concerns that you raise.
Where your complaint concerns a tax agent service or BAS agent service that we have provided, you also have the right to make a complaint to the Tax Practitioners Board in accordance with their complaints process described here https://www.tpb.gov.au/complaints.
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Termination
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Each of us may terminate this agreement by giving not less than 21 days’ notice in writing to the other party except where a conflict of interest has arisen, you fail to cooperate with us or we have reason to believe that you have provided us or any other person with misleading or factually inaccurate information, in which case we may terminate this agreement immediately. Termination will not affect any accrued rights.
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Electronic Communication & Digital Execution
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We commonly communicate and exchange documents by email and other electronic means. You acknowledge the inherent risks and consent to us doing so. Where this letter is executed electronically (e.g. via FuseSign) such execution constitutes acceptance of these terms as though signed in ink.
You must advise of any changes to your contact details. We may send any communications to the last contact details you have provided. Unless you instruct us otherwise, we may, where appropriate, communicate with you and with third parties via email or by other electronic means. The recipient is responsible for virus checking emails and any attachments. There is a risk of non-receipt, delayed receipt, inadvertent misdirection or interception by third parties in any form of communication, whether electronic, postal or otherwise. We are not responsible for any such matters beyond our control.
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Conflicts of Interest
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We routinely act for related entities and family groups. We have policies to manage conflicts in accordance with APES 110. If a conflict arises we will promptly notify you and, where required, obtain your consent to continue acting.
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Governing Law
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This Engagement is governed by the laws of Tasmania, Australia. The courts of Tasmania have exclusive jurisdiction in relation to any dispute.
Confirmation of Terms
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Your acceptance of our services in conjunction with this Engagement Letter indicates that you understand and accept these terms. This Engagement Letter will apply to future services we provide to you, unless we advise you otherwise.
Client Acknowledgement
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I/We, .......................................................................................................... acknowledge that I have read and understood this Engagement Letter and agree to the terms and conditions herein. I confirm that I have the authority to enter into this engagement (on behalf of the entity if applicable) and accept personal responsibility for all fees and charges for the services provided under this agreement.
Name:
Signature:
Date: