Purpose The purpose of this Engagement Letter is to set out and confirm the terms of engagement between our firm and you. The Engagement Letter has been aligned with the standards of APES 110 Code of Ethics and APES 305 Terms of Engagement as published by the Accounting Professional and Ethical Standards Board.
Each entity is bound to this engagement both in its own capacity and, where acting as a trustee, in the capacity as trustee of the relevant trust. Any additions will be by the written agreement of both parties.
Tuplin Accounting Responsibility
Where Tuplin Accounting offers to provide tax compliance services, Tuplin Accounting will be responsible for the following (where applicable):
- Preparation of annual financial statements.
- Preparation and lodgement of income tax returns for the business and owners of the business.
- Prior to lodgement, drafts will be forwarded 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 taxation reporting period. This will allow adequate time for preparation and lodgement.
- Preparation and lodgement of all activity statements for the business and owners of the business.
- Review of fringe benefits tax liability.
- Notification of the due date for income tax returns and income tax payments.
- Checking of income tax assessments when received from the Australian Taxation Office and forwarding those assessments.
- 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.
- Preparation and lodgement of Australian Securities and Investments Commission (ASIC) forms and documents and retention and maintenance of registers and seals.
- Professional courtesy, and in line with the requirements of the IPA sees that we will inform your previous accountant that we have been engaged by you as your new accountant and to receive from them any outstanding matters and files.
- Preparation of minutes of general meetings and directors meetings as and when required.
- Undertake other work as agreed – including , but not limited to ASIC Management, Bookkeeping, BAS lodgement, FBT, Superannuation lodgement and Personal and Business Financial Health Check.
Under the terms of this engagement Tuplin Accounting will not audit the financial statements and therefore we will not be expressing an opinion as to the truth and fairness of those statements. This type of engagement will not disclose fraud, defalcation or other irregularities which may occur.
Client’s Responsibility
To enable Tuplin Accounting to fulfil its client responsibilities, we require you to:
ensure all assumptions provided are accurate;
- Provide Tuplin Accounting with reliable, accurate and complete information as and when required;
- Acknowledge that it is your responsibility to devise and maintain a system of internal accounting controls; including protection against and prevention of fraud, rest with you the client. You will also be responsible for the maintenance of books of account. If any material weakness in the accounting systems or internal control systems comes to our notice, you will be advised accordingly
- Determine the adequacy of your internal accounting controls and financial reporting systems without relying on Tuplin Accounting services or deliverables as the primary basis for making such determinations; and
- That it is your responsibility to make such disclosures with respect to this engagement that are required by applicable laws and regulations.
- 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. We will not take responsibility for any failure on your behalf to main adequate records.
- 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.
- As a historical base reference, please forward copies of the past 2 years tax returns. It is noted that we are not engaged to review the accuracy of previous returns lodged by 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.
Ownership of Documents Unless agreed to the contrary, 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 documents remain our property.
Fees and billing arrangements
Our fees are required to be paid from 7 days of invoice date. Fees are payable prior to tax/BAS lodgement with ATO. The professional fees for the services provided will be based on the time and skill required to complete the nominated tasks and will include as an additional item out of pocket expenses and statutory charges, unless otherwise agreed.
Involvement of other members in professional practice: Our firm may from time to time use the services of third-party contractors to perform some of the services we are engaged to perform for you. Each client accepting these terms and conditions hereby authorises us to disclose information relating to that client’s affairs to all such third-party contractors as we may choose to engage to perform such work. In the event this occurs, our office is satisfied those third parties meet all Australian Privacy Law obligations as set out under the Privacy Act 1988 (Cth) and the Australian Privacy Principles (APP standards). Where we use the services of third-party contractors, we are nevertheless responsible for the conduct and activities of those contractors and for the delivery of the services we are engaged to perform for you. 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.
Professional bodies require all members who hold Public Practice Certificates to undergo a compulsory review of their practice once every five years. This program is designed to ensure that accountants use total quality systems in all that they do on behalf of clients. Your files may be selected as part of this review.
You authorise Tuplin Accounting to access all necessary information to carry out our engagement, including obtaining information from banks, solicitors, investment bodies and any other organisation relevant to the engagement.
Lien over Documents In the event of the termination of services, you are advised that 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 satisfactory agreements have been made. 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.
Professional Standards We aim to provide the highest standard of professional service and are focused on the concerns of our clients. If for any reason you feel you have not received the service expected, please in the first instance, contact us to discuss. Furthermore, as a Fellows of the IPA in public practice, I am subject to the ethical and professional requirements of the IPA and its Investigations and Disciplinary processes, such as a Code of Ethics, adherence to Accounting and Auditing Standards, Continued Professional Education and to hold trust money in a Trust Account. Should there be an issue regarding our ethical or business practices, such matters may be referred to the IPA for investigation.
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: psc.gov.au.
Confirmation of the terms in this Engagement Letter Acceptance of our services in conjunction with this information indicates that you understand and accept the arrangements. This information will be effective for future engagement unless we advise you of any change.
Thank you for the opportunity to provide professional accounting and taxation services.
We look forward to developing a close and mutually satisfying relationship with you for many years to come.