TERMS OF PROFESSIONAL ENGAGEMENT – COMPILATION ENGAGEMENT SERVICES
Thank you for engaging Stott & Uno Accountants & Advisors to assist with your professional accounting requirements.
We recognise the importance of clearly understanding your needs and expectations. Accordingly, we have prepared the attached Terms of Engagement (TE), which outlines the scope of our services and the key terms governing our engagement. By proceeding with a booking or meeting, you acknowledge that you have read, understood, and agree to be bound by the TE.
The scope of work may fall within the CPA Australia Ltd Professional Standards (Accountants) Scheme (Scheme), which is designed to maintain and improve professional standards within the industry and provide protections for consumers. Where applicable, our services are provided in accordance with the Scheme.
If you have any questions or require clarification regarding the TE, please contact our office on (02) 9686 4864 prior to proceeding.
CANCELLATION POLICY : All booked meetings are non-refundable. However, we will accommodate rescheduling requests, provided the meeting is rescheduled within six (6) months of the original booking date.
By proceeding with a booking and making payment for the meeting, you acknowledge and agree that such payment constitutes your acceptance of, and agreement to be legally bound by, these Terms of Engagement. You confirm that you have read and understood these terms and that you are authorised to enter into this agreement in your personal capacity and/or on behalf of any individual, entity, or organisation you represent. This agreement is taken to be formed upon receipt of payment, which constitutes sufficient consideration for the services to be provided.
We appreciate the opportunity to assist and look forward to working with you, and to supporting you or your organisation with your accounting and advisory needs now and into the future.
With best wishes,
STOTT & UNO ACCOUNTANTS & ADVISORS
TERMS FOR COMPILATION ENGAGEMENT OF ACCOUNTING & TAXATION SERVICES
Between Stott & Uno Accountants & Advisors (referred to as ‘we’, ‘us’ or ‘our’) and the person making the booking, including in their personal capacity and as agent, representative, director, employee, or authorised signatory of any individual, entity, or organisation on whose behalf they act or purport to act (together referred to as ‘you’ or ‘your’), for the term specified. By making a booking, you warrant that you are authorised to bind any such individual, entity, or organisation to these terms.
1. Purpose
This Terms of Engagement for Compilation Engagement Services (TE) confirms our understanding of the engagement and the nature and limitations of services provided.
2. Term
2.1 This TE will commence at the time you indicate acceptance and will continue until revoked by us or you.
3. Objectives and Scope of work
3.1 We will provide you with compilation engagement services in compliance with APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code), APES 315 Compilation of Financial Information, and APES 205 Conformity with Accounting Standards which include, but not limited to:
Individuals
Preparation of Income Tax Returns.
Review and assist in preparation of your BAS/GST and PAYG Instalment obligations to the ATO as necessary.
Outlining and complying with any statutory obligations in relation to land tax once properties are purchased and are known to us.
Taxation advice as requested from time to time.
To help us prepare your Income Tax Return, you will need to provide us the following, where relevant: -
Copies of any BAS and/or IASs reported to the ATO.
Annual PAYG Payment summaries.
Details of other investment income from properties, trust distributions, dividends and interest received and the like.
Details of costs incurred in relation to investment income streams.
Details of other work-related expenses.
Details of other general tax deductions.
Anything else you consider relevant to your tax affairs.
Other items as requested from time to time.
Entities
Preparation of the Annual Financial Accounts, including the Profit and Loss Statement and Balance Sheet.
Preparation of Income Tax Returns
Preparation of the Company’s ASIC Annual Statement and Solvency Statement.
Preparation of certain Company Minutes etc. to comply with statutory requirements.
Review and assist in preparation of your BAS/GST, PAYGW and PAYGI obligations to the ATO as necessary.
Assistance with any Work Cover and Payroll Tax obligations.
Preparation of your FBT Return and any FBT Declarations (where applicable).
Review of your financial accounts to ensure consistency with the FBT return.
When requested, advising, or instructing staff on the maintenance of the accounting and internal control systems.
Checking and correcting management accounts matters on internal accounting system.Outlining any obligations in relation to land tax once properties are purchased and are known to us.
Advice as requested from time to time.
We understand that an audit of the Financial Accounts is not required under current legislation and therefore, we will not be expressing an opinion as to the truth and fairness of those Accounts and associated statements.
To help us prepare your Financial Accounts and Income Tax Returns, you will need to provide us the following, where relevant: -
Up-to-date and reconciled General Ledger/Cash Books.
Copies of your Business Activity Statements reported to the ATO.
Any loans/finance documentation.
Copy of Bank Statements.
Details of new assets purchased (including cars for FBT purposes).
Annual PAYG Withholding summaries.
Other items as requested from time to time.
3.2 These will be prepared in accordance with the financial reporting framework/basis of accounting described in Note 1 to the financial statements.
3.3 The purpose for which the financial statements will be used is to provide financial information showing the client’s financial position at the relevant financial reporting date and financial performance for the year then ended. The financial statements will be solely for your use and will not be distributed to other parties.
3.4 As part of our engagement, we will issue our report attached to the financial statements compiled by us, which will describe the financial statements, and the work we performed for the compilation engagement. The report will also note that the use of the financial statements is restricted to the purpose set out in this engagement letter and that use, and distribution of our report is restricted to you.
4. Our Promise
4.1 We will perform procedures (guided by the APES suite of standards) required that are directly related to the engagement consistent with our Fundamental Principles of integrity, objectivity, professional competence and due care, confidentiality, professional behaviour, and identifying, avoiding, and dealing with conflicts of interests.
4.2 We will seek to understand your requirements and provide you services confidentially and professionally.
4.3 We will document sufficient and appropriate records of the procedures performed for the TE, which may be subject to Best Practice Program assessment by CPA Australia under APES 320 Quality Control for Firms.
5. Our obligations
5.1 We are obliged to consider whether our clients create any threats to compliance with our Fundamental Principles and where we cannot reduce the risk to an acceptable level we are obliged to cease the TE under the Code (section 320) to decline or cease the client engagement.
5.2 We have a duty to act in your best interests, unless this duty is inconsistent with our duty to act in the public interest.
5.3 We will apply our expertise in accounting and financial reporting to assist you in the preparation and presentation of financial information.
5.4 We are responsible for maintaining records for a five-year period unless otherwise required by legislation.
5.5 Since a compilation engagement is not an assurance engagement, we are not required to verify the reliability, accuracy, or completeness of the information you provide to us for the compilation engagement, or otherwise to gather evidence to express an audit opinion or a review conclusion. Accordingly, we will not express an audit opinion or a review conclusion on whether the financial statements are prepared in accordance with the basis of accounting you have specified, as described above.
5.6 During our engagement, if we identify or suspect that Non-Compliance with Laws or Regulations (NOCLAR) has occurred or may occur, which may have a direct effect on material amounts or disclosures in the financial statements or compliance and may be fundamental to your ability to continue its business or to avoid material penalty, we may:
5.6.1 discuss the matter with the appropriate level of management, those charged with governance or the internal auditor, as appropriate
5.6.2 communicate the non-compliance or suspected non-compliance with your external auditor, unless prohibited by law or regulation
5.6.3 disclose the matter to an appropriate authority even when there is no legal or regulatory requirement to do so; and/or
5.6.4 withdraw from the engagement and the professional relationship where permitted by law or regulation
5.7 Where appropriate we will inform you of our intention to disclose the matter to an appropriate authority before disclosing the matter. However, if we have reason to believe that the actual or intended conduct would constitute an imminent breach of a law or regulation that would cause substantial harm to the public, we may immediately disclose the matter to an appropriate authority in order to prevent or mitigate the consequences of such imminent breach of law or regulation.
6. Your obligations
6.1 You acknowledge and understand that our role is to assist you in the preparation and presentation of the financial statements in accordance with the financial reporting framework you have adopted for the financial statements.
6.2 You are responsible for the form and content of the financial information in accordance with an applicable financial reporting framework that is acceptable in view of the intended use of the financial statements and the intended users including the notes disclosure of all relevant information in the financial report.
6.3 You are responsible for the reliability, accuracy and completeness of the particulars and information provided to us, and the accounting records and disclosures of all material and relevant information provided to us for the purpose of compiling the financial statements.
6.4 You are responsible for the judgements needed in the preparation and presentation of the financial statements, including those for which we may help in the course of the compilation engagement.
6.5 You are responsible for retaining paperwork for as long as legally required.
6.6 You are responsible for your own record keeping relating to your affairs.
7. Third Party Involvement
We may from time to time engage third party specialist professionals and other public practitioners, where warranted to obtain the advice you need or to assist us to provide our service to you. These may include cloud service providers and outsourced service providers.
7.1 We will seek your consent if third party involvement is likely to exceed the fixed price (if applicable).
7.2 Acceptance of our services in conjunction with this engagement document indicates your acceptance of the use of outsourced services as described above.
8. Fees, Billing & Trust Monies
8.1 If the engagement involves the use of trust monies, we will manage those funds in accordance with APES 310 Client Monies and as authorised by you in the Trust Account Authority Letter (if applicable) or as otherwise instructed by you.
8.2 Our fees, which will either be billed as work progresses or upon finalisation, are based on the time required by the individuals assigned to the engagement plus direct out-of-pocket expenses. Hourly charge-out rates for different levels of staff are available upon request.
8.3 Our invoices may also include disbursements paid by us. These may include photocopying charges, telephone and facsimile transmission charges, travel fares and expenses, stamp duty and fees paid to third parties such as couriers, registration fees or fees for other professionals. These may be in addition to the fixed price (if applicable).
8.4 Unless other payment terms are agreed, each invoice is payable within 7 days of receipt.
8.5 It is our requirement that the directors/individuals personally guarantee the payment of all invoices/accounts for professional fees, including out of pocket expenses rendered by us from time to time.
9. Ownership of materials
9.1 You own all original materials given to us.
9.2 We own all materials produced by us that resulted from our skill and attention to the extent that the materials produced by us incorporate any original materials you give to us.
9.3 We may exercise a lien of your documents in our possession in the event of a dispute, which will be handled in accordance with our firm’s dispute resolution process.
9.4 Subject to the payment of all outstanding professional fees and disbursements owing to us, we will provide you with materials produced by us for you in the event you engage the services of another practitioner, and the materials are required by your new practitioner.
10. Privacy
10.1 Our collection use and disclosure of your personal information (PI) may be subject to the Privacy Act 1988 (Cth) and accordingly we will only collect PI about you that relates to the TE. We may disclose PI about you with your implied consent for the primary purpose of this TE or to third parties by express consent or as required by law. This PI may be stored overseas. If you would like to access any PI, we might hold about you contact our office.
10.2 We may collect PI about you, your representatives, your clients, and others when we provide services to you. If we do, you agree to work with us to ensure that we both meet our respective obligations under the Privacy Act 1988 (Cth). Your obligations may include ensuring your privacy policy and contracts include a reference to your collection practices, how you will use the PI and that you may disclose the PI to an agent for public accounting services.
10.3 Where an outsourced service requires the disclosure of PI to an overseas recipient, we take care to ensure that other third parties outside Australia to whom we disclose PI are subject to appropriate restrictions on their handling of that PI.
10.4 In providing our services to you, we utilise various Cloud Computing software and, we rely on their security measures. We also store client information in a data server managed in Australia and abroad.
10.5 If your PI is disclosed to CPA Australia for the purpose of conducting a CPA Australia Best Practice Program assessment on the services provided, your personal information will be handled as outlined in the CPA Australia Privacy Policy and the member collection notice.
11. Confidentiality
11.1 We have an ethical duty of confidentiality, which means we must not share or disclose your details of this TE to anyone, except as otherwise specified in this clause, without your consent unless required to by law.
11.2 We may disclose details and records of the services provided to you to CPA Australia Ltd, (if requested) for the purposes of conducting a CPA Australia Best Practice Program assessment aimed at maintaining high industry professional standards. Any such disclosure of confidential information does not change any of our commitments to safeguard your information, and the information remains subject to any existing confidentiality obligations.
12. Professional Indemnity Insurance (PII)
12.1 We hold professional indemnity insurance of at least the minimum amount prescribed in the CPA Australia Ltd By-Laws or as required by law. Our PII cover at the time of this TE is $2,000,000.00.
13. Professional Standards Scheme & Limitation of Liability
13.1 We participate in the CPA Australia Ltd Professional Standards Scheme (Scheme), which facilitates the improvement of professional standards to protect consumers and may limit our liability to you in a cause of action.
13.2 The Scheme applies to professional accounting services including accounting, bookkeeping, taxation, auditing and assurance, insolvency and corporate reconstruction, management accounting, management consulting, forensic accounting,
valuation services.
14. Other
14.1 This letter will be effective for future years unless we advise you of its amendment or replacement, or the engagement is terminated.
IMPORTANT NOTICE: This advice provided with care but without liability. Communication may contain confidential information belonging to Stott & Uno Pty Ltd ATF Stott & Uno Unit Trust (Stott & Uno) and its clients. If you are not the intended recipient, you must not use, copy, distribute or disclose this message or any attachments without prior written authority from Stott & Uno. Any views expressed in this email are those of the author and do not necessarily represent the views of Stott & Uno, its directors or employees unless expressly stated. Information that does not relate directly to the business of Stott & Uno is not given or endorsed by Stott & Uno, its directors or employees. Liability limited by a scheme approved under Professional Standards Legislation. Regulatory Disclosure: Stott & Uno Pty Ltd is a Registered Tax Agent under the Tax Agent Services Act 2009 (Cth). Tax Practitioners Board Registration Number 26155825. Registration details can be verified at www.tpb.gov.au. In accordance with the Tax Agent Services Act 2009 and the Tax Practitioners Board Code of Professional Conduct, we confirm that there are no current conditions, restrictions, sanctions or disclosable events applicable to our registration that would reasonably influence your decision to engage our services.