Professional Engagement Agreement

Engagement Agreement

The purpose of this Engagement Agreement is to set out and confirm the terms of engagement between our firm and you.

Where engaged, we agree to perform for you, the following services;

  • Analyse, discuss, assist and prepare recommendations regarding your accounting, bookkeeping and financial affairs
  • Prepare financial and other statements as required
  • Prepare and lodge taxation returns and activity statements, review assessments and advise on appeal procedures where necessary
  • Conduct business planning and budgeting

 

Registered Tax Agent

We are registered with the Tax Practitioners Board as a Registered Tax Agent

The Tax Practitioners Board (TPB) is a national body responsible for the registration and regulation of Tax Agents and BAS agents. The TPB is also responsible for ensuring compliance with the Tax Agent Services Act 2009, including the Code of Professional Conduct

The Tax Practitioners Board maintains a register of Tax and BAS agents. Our registration number is 36961015

As part of our registration requirements we must provide you their link to their publicly available register. You can search and view their register here.

We must also provide you information on how to make a complaint to the Tax Practitioners Board. To do so, visit their website here.

As an Accountant, we are bound by the APES 110 Code of Ethics for Professional Accountants (including Independence Standards), and pursuant to the Responding to Non-Compliance with Laws and Regulations (NOCLAR) requirements, we are required to report any non-compliance with laws and regulations or acts of omission or commission, intentional or unintentional by a client or by those charged with governance, by management or by other individuals working for or under the direction of a client, which are contrary to the prevailing laws or regulations.

Professional Public Accountant

As accountants we are members of the Institute of Public Accountants (IPA) and hold a Public Practice Certificate (PPC) with them.

For information on the IPA, you can visit their website here

Kevin is a Fellow with the IPA and has been a member since 2004. He is also a NSW Justice of the Peace.

Disclosure of fees and commissions from other parties

We do not receive any fees, discounts or commissions from third parties as a result of work undertaken for you.

If we were to enter any such arrangement, we would contact you first, to fully comply with the statutory requirements in relation to the disclosure of this information.

Documents

Before documentation is lodged on your behalf, drafts will be forwarded to you for your approval. Documentation will be lodged with the relevant departments by the due dates, provided all information and documentation is received promptly after the Financial Year End or other statutory date. This will allow adequate time for preparation and lodgement.

If you are late in providing information, best efforts will be made to meet deadlines. No responsibility will be accepted for any late lodgement penalties incurred.

Responsibility for Accounting and Internal Control Systems

The responsibility for the maintenance of a business accounting system and internal control systems, including protection against and prevention of fraud, rest with you the client. You will also be responsible for the maintenance of books of account. This includes any work produced by a third party not engaged by this firm that is to be relied upon. If any material weakness in the accounting systems or internal control systems comes to our notice, you will be advised accordingly.

It is important to remember you are personally responsible for the information contained in any statutory return and that you must retain all necessary supporting documentation to substantiate transactions.

Quality Review

As a member of the Institute of Public Accountants (IPA), we are subject to the IPA’s Quality Review Program (QRP) mandated by the International Federation of Accountants (IFAC). QRP reviews assess member compliance with the professional and ethical standards and by accepting our engagement you acknowledge that, if requested by IPA, our files relating to this engagement may be made available for QRP review. Unless otherwise advised, you are consenting to your files being part of a QRP review.

Professional Standards Scheme

As a member of the IPA, we are part of the IPA Professional Standards Scheme and our liability is limited by a Scheme approved under Professional Standards Legislation. For more information on the IPA Professional Standards Scheme or Professional Standards Schemes generally, please refer to: https://psc.gov.au/professional-standards-schemes

Privacy Statement

We are bound by the provisions of the Privacy Act 1988 to maintain all your records securely and in accordance with the provisions of that Act. Any breach of these requirements should be notified to the Privacy Commissioner. As noted above under “Quality Review Program”, your file, unless you specifically forbid it, may be subject to a QRP review. As a Tax Agent, we are  subject to the code of professional conduct established by the Tax Agent Services Act 2009 (TASA), this Code requires that unless legally required to we cannot disclose information to a third party without your permission.

Third Party Involvement

At times we may outsource some of our work which involves us entering into an agreement with a third party to provide specific processes, functions, services or activities for us.  If we decide to do this as part of performing the services for you, we will contact you first to seek your approval to engage other parties.

In providing our services to you, we may utilise cloud computing systems provided by the following government and non-government organisations;

Information on these organisations, where they are located and how your confidential information is stored is available by contacting us or viewing their Privacy Policy, available on their URL’s as shown above or by clicking on the hyperlink provided in their name.

This engagement is a contract between you and us, and you agree that none of the third parties we use will have any liability to you and you will not bring any claim or proceedings of any nature in connection with this engagement against any third party that we may use to provide the services. This exclusion will not apply to any liability, claim or proceeding founded on an allegation of fraud or other liability that cannot be excluded under law.

Accounting and Record Keeping

In undertaking this engagement, it is understood that you will ensure that:

  • the bookkeeping for all business entities are maintained on a regular basis. It is recommended that all bookkeeping and record-keeping tasks be attended to weekly;
  • reconciliations of bank accounts, debtors and creditors are performed at the end of each month for each of the business entities;
  • a stock take will be performed during the last weekend in June for each entity holding trading stock.

Ownership of Documents

The final documents to be prepared under this engagement, together with any other original documents, shall remain your property. Documents prepared under this engagement, including general journals, working papers, the general ledger, and draft financial statements, remain our property at all times. However, we will always provide you with copies of any documents you require.

Lien over Documents

If permitted by law, we may exercise a lien over all materials or records in our possession to all engagements for you until all outstanding fees and disbursements are paid in full.

Business Activity Statement (BAS) Returns

BAS returns are prepared as per your registration cycle and lodged during the financial year. It is not possible to review the correctness of the underlying financial information as part of the preparation of the BAS return.

This engagement is for the preparation of the annual financial statements at the end of the financial year. Accordingly, the BAS returns will be based upon the financial information provided without review of primary source documents.

In doing so, it is assumed that the financial information provided by you is accurate, that the financial information correctly states the Goods and Services Tax (GST) position; for example that all input tax credits and GST payable amounts have been correctly recorded; that you have supporting documentation to satisfy the ATO for GST audit purposes; and that you hold valid tax invoices and adjustment notes for all expenditure incurred and for which an input tax credit is being claimed.

It is possible that, when the financial statements are prepared, discrepancies are noted between the information disclosed in BAS returns and the annual financial statements. Any corrections and related fees will be documented at this time.

Financial Statements

Where we are engaged to prepare the annual financial statements of the business entities in your group,  the service includes the preparation of:

a) a profit and loss statement;

b) a balance sheet; and

c) notes to the above financial statements.

This service includes maintenance of the charts of accounts for the general ledgers of your business entities. It also includes telephone support for the recording of specific transactions in the general ledger.

This service does not include the preparation of one-off financial statements for presentation to your financiers, for which a separate fee shall apply.

Income Tax Returns

Where we are engaged to prepare and lodge income Tax Returns for you and where appropriate, your family, in addition to the basic financial information required to complete these Tax Returns, it is a requirement that taxpayers are able to substantiate their claims and it is expected that all source documentation will be available to allow analysis of the income tax implications of any transaction.

The fee for this service does not cover inquiries or investigations conducted by the ATO.

Client’s disclosure and record keeping obligations

You are required by law to keep full and accurate records relating of your tax affairs. It is your obligation to provide us with all information that would be reasonably expected will be necessary to allow us to perform work contemplated under the engagement within a timely manner or as requested. This includes providing accurate and complete responses to questions asked of client by the practitioner.  Inaccurate, incomplete or late information could have a material effect on services and/or conclusions.

We need not verify the underlying accuracy or completeness of information from you if it appears reasonable.  However, if we believe information is missing, incorrect or misleading, we will need to seek further assurance from you.

The Taxation Administration Act 1953 now contains specific provisions that may provide you with “safe harbour” from administrative penalties for incorrect or late lodgement of returns.  These safe harbour provisions will only be available to you if, amongst other things, you provide “all relevant taxation information” to us in a timely manner (the safe harbour provisions apply from 1 March 2010).  Accordingly, it is to your advantage that all relevant information is disclosed to us, as any failure by you to provide this information may affect your ability to rely on the “safe harbour” provisions and will be taken into account in determining the extent to which tax practitioners have discharged their obligations to clients. It is your responsibility to show that you have brought all matters to our attention if you want to take advantage of the safe harbours created under the new regime.

Client’s rights and obligations under the taxation laws

Taxpayers have certain rights under the taxation laws, including the right to seek a private ruling from the Australian Taxation Office (ATO) or to appeal or object against a decision made by the Commissioner. Taxpayers also have certain obligations under Australian taxation laws, such as the obligation to keep proper records and the obligation to lodge returns by the due date. We must keep you informed of any specific rights and obligations that may arise under Australian taxation laws.

Tax Practitioners obligation to comply with the law

We have a duty to act in our client’s best interests. However, the duty to act in our client’s 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 directions.  For example, we could not lodge an income tax return that we believe to be false in a material respect.

Previous Tax Returns

Unless specifically engaged, we are not engaged to review the accuracy of previous returns lodged by you or your organisation including that of the Principals, Partners, Trustees, Directors, Shareholders or Beneficiaries. You have warranted that reliance can be placed on the balance sheet(s) and other financial records presented by you for this purpose.

Liability limited by a scheme approved under Professional Standards Legislation