Client Engagement Letter
Please read this letter carefully. It sets out the terms on which we provide our services to you. If you have any questions, call us on 0466 268 405 before engaging our services. You can also download a Word copy for your records.
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 has been prepared in accordance with the standards of APES 110 Code of Ethics and APES 305 Terms of Engagement as issued by the Accounting Professional and Ethical Standards Board (APESB), and reflects the current guidance and requirements of the Institute of Public Accountants (IPA) and, where applicable, the Tax Practitioners Board (TPB).
This letter applies to accounting, taxation and compliance services provided to individuals, sole traders, companies, trusts, partnerships, self-managed superannuation funds (SMSFs) and other entities as our clients.
Client Type
This letter applies to the following client types:
- Individual
- Sole Trader
- Company
- Trust
- Partnership
- Self-Managed Superannuation Fund (SMSF)
- Other
Objectives
The objectives of the engagement are to perform the services agreed with you, and our engagement will be limited to those services only. The specific services will be confirmed in your fixed-fee quote before work commences.
Please be aware that we will not conduct an audit or review unless specified as a service to be performed for you, and accordingly no assurance will be expressed. Where the client is an SMSF, this engagement does not include the annual independent SMSF audit required under the Superannuation Industry (Supervision) Act 1993, which must be performed by an approved SMSF auditor independent of our firm, unless separately agreed and permitted under applicable independence requirements.
Unless specified as a service to be performed for you, this engagement cannot be relied upon to disclose irregularities, including fraud, other illegal acts and errors that may occur. However, we will inform you of such matters if they come to our attention.
The requirements of Section 225 (and Section 360) of APES 110 on Responding to Non-Compliance with Laws and Regulations (NOCLAR) require us to respond to non-compliance with laws and regulations, or acts of omission or commission, whether intentional or unintentional, by a client, by Those Charged with Governance, by management, or by other individuals working for or under the direction of a client, which are contrary to prevailing laws or regulations. Where we determine that disclosure of NOCLAR to an appropriate authority is the correct course of action, that disclosure will not be regarded as a breach of confidentiality under our Code of Ethics.
Scope
The engagement period will be confirmed in your quote or engagement confirmation.
Output
We will advise you of the anticipated time required to complete our work for the agreed services.
Any reports, including Financial Statements, Income Tax Returns and similar documents, 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 reliance on our report by any person or entity other than you and those parties indicated in the report. The report must not be relied upon or used for any purpose other than that for which it was specifically prepared, and our report may include a disclaimer to this effect.
Responsibilities Specific to Your Entity Type
Depending on your client type, the following responsibilities apply in addition to the general terms of this engagement:
- Sole Trader: you are personally responsible for the accuracy of records provided and personally liable for all tax and compliance obligations arising from the business.
- Company: the directors are responsible for ensuring the company maintains proper accounting records under the Corporations Act 2001 and for the accuracy of information provided to us on the company’s behalf.
- Trust: the trustee(s) are responsible for administering the trust in accordance with the trust deed and applicable law, and for providing us with accurate information regarding trust distributions and resolutions.
- Partnership: each partner acknowledges that partners may be jointly and severally liable for the partnership’s obligations, and that information provided by any partner may be relied upon by us as authorised on behalf of the partnership.
- SMSF: the trustee(s) are responsible for ensuring the fund complies with the Superannuation Industry (Supervision) Act 1993 and associated regulations, for providing complete records of fund transactions and investments, and for engaging an independent approved SMSF auditor for the annual audit.
Professional Standards Scheme
As a member of the IPA, our firm is part of the IPA Professional Standards Scheme, and our liability is limited by a scheme approved under Professional Standards Legislation. Further information on the IPA Professional Standards Scheme, or on Professional Standards Schemes generally, is available at psc.gov.au.
Relative Responsibilities
As a member of the IPA, our firm is subject to Professional Practice Quality Assurance (PPQA) reviews mandated by the International Federation of Accountants (IFAC). The PPQA reviews assess member compliance with professional and ethical standards, and by accepting our engagement you acknowledge that, if requested by the IPA, our files relating to this engagement will be made available for PPQA review. Should this occur, we will advise you.
You are required by law to keep full and accurate records relating to your affairs. It is your obligation to provide us with all information that would reasonably be expected to allow us to perform the services requested under this engagement, including accurate and complete responses to questions we ask of you. Inaccurate, incomplete or late information may have a material effect on our services or reports.
Where taxation services are provided, the Taxation Administration Act 1953 contains “safe harbour” provisions that may protect you from administrative penalties for incorrect or late lodgement of returns. These provisions are only available where, among other things, you provide “all relevant taxation information” to us in a timely manner. It is therefore to your advantage to disclose all relevant information to us, as any failure to do so may affect your ability to rely on the safe harbour provisions.
If we require documents or information from a third party, we will contact you first to seek your approval before contacting that third party.
Confidentiality and Overseas / Third-Party Disclosure
Information you provide to us in the course of this engagement is treated as strictly confidential. However, in performing our services we may engage contractors, staff or service providers located overseas (including bookkeeping, data processing, cloud storage or other support functions) who may have access to your information for the purpose of assisting us in delivering the services under this engagement. We take reasonable steps to ensure that any overseas contractor or service provider we engage handles your information securely and in a manner consistent with our obligations under the Privacy Act 1988. By accepting this letter, you acknowledge and consent to this potential overseas disclosure and transfer of your information.
We are bound by the Privacy Act 1988 to hold all records securely and in accordance with that Act. Any breach of these requirements should be notified to the Office of the Australian Information Commissioner. As noted above, if we are subject to a PPQA review, your file may be reviewed as part of that process unless you specifically instruct us otherwise in writing.
Use of Artificial Intelligence
In the course of providing our services, our firm may use artificial intelligence (AI) tools and technologies for working purposes, including for tasks such as drafting correspondence, data processing, research assistance and preparing working papers. Any use of AI by our firm is undertaken with appropriate care, and all outputs generated with the assistance of AI are reviewed by a qualified member of our team before being relied upon or issued to you. The use of AI does not reduce or transfer our professional responsibility for the accuracy, quality or completeness of the services and advice we provide to you, and we remain fully accountable for all work performed under this engagement.
Where the use of an AI tool would involve disclosing your information to a third-party AI provider (including providers located overseas), we will only do so in a manner consistent with the confidentiality and overseas disclosure terms set out above, and in accordance with our obligations under the Privacy Act 1988 and relevant guidance issued by the Tax Practitioners Board and the Accounting Professional and Ethical Standards Board. By accepting this letter, you acknowledge and consent to our use of AI tools for working purposes in connection with this engagement. If you do not wish for AI tools to be used in relation to your file, please advise us in writing and we will note your file accordingly.
Involvement of Other Members in Professional Practice
At times we may outsource elements of our work under an agreement with a third party to provide specific processes, functions, services or activities on our behalf. 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 that other party.
This engagement is a contract between you and us, and you agree that no third party we engage will have any liability to you, and that you will not bring any claim or proceedings of any nature in connection with this engagement against any third party we may use to provide the services. This exclusion does not apply to any liability, claim or proceeding founded on an allegation of fraud, or any other liability that cannot be excluded by law.
Fees and Billing Arrangements
Our rates are determined from time to time by the directors of this firm and are published in a Price List for works, which may be made available to you at any time. We provide fixed-fee pricing, which will be quoted to you, and work will not commence until you have agreed to the fixed price quote.
When providing a fee estimate, our fees take into account:
- The nature and timeliness of the information you provide;
- Whether the information is provided to us in a format that facilitates entry into our processing software;
- Your availability to respond to any questions we may have regarding the information provided;
- The complexity of the issues involved; and
- The seniority of the staff member allocated to undertake the services.
Any quote we provide assumes there are no unexpected complications or undue delay in the provision or quality of the data. By separate cover, we will provide a quote for the annual compliance work (accounts and taxation returns), together with the provision of our firm as your ASIC registered office or SMSF registered office, should that service be of assistance to you.
A quote for works will be finalised once the scope of work is confirmed. All invoices are payable on the date issued.
This firm and its members may receive introductory commissions, fees or benefits for referrals to other businesses. Full details may be requested at any time.
Ownership of Documents
Unless agreed otherwise, source documents such as ledgers, receipts, invoices and journals, correspondence between the ATO and you, ATO notices of assessment, letters of advice, books of account, tax returns and financial statements prepared by us remain your property. Our working papers and internal documents remain our property.
Lien Over Documents
In the event of termination of services, we may invoke a lien over certain documents we have prepared, and we will hold these documents until all outstanding fees have been paid or a satisfactory agreement has been reached. A lien is a right to hold certain documents or property until the debt incurred in respect of those documents or property has been paid.
Confirmation of the Terms in This Engagement Letter
Acceptance of our services in conjunction with this information indicates that you understand and accept these arrangements. These terms will remain effective for future engagements unless we advise you of any change.
Acknowledgement
By ticking the agreement box on our client forms, you acknowledge this Engagement Letter and agree to the terms and conditions contained within it. You confirm that you have the capacity to enter into this engagement (including, where applicable, on behalf of an entity, trust, partnership or SMSF) and will be personally liable for all fees and charges for the services performed in accordance with this agreement.