You as client We need to know all entities and individuals covered by our terms of engagement.
Period of engagement Unless otherwise agreed this engagement is of an ongoing arrangement.
Description of services to be provided Preparation of Financial Statements, tax returns and tax advice, plus any other accounting services agreed on as an ongoing arrangement or alternatively agreed in writing as a one-off service. This arrangement is governed by New Zealand Institute of Chartered Accountants (NZICA) Rules & Code of Ethics found at https://www.charteredaccountantsanz.com/member-services/member-obligations/regulations-and-guidance/new-zealand-regulations/nzica-rules-and-code-of-ethics . All services provided excludes audits or reviews. The form and content of the output will comply with the NZICA Rules.
Client responsibilities Our compilation of reports is limited primarily to the collection, classification and summarisation of your financial information. You will accept responsibility for the accuracy and completeness of all information supplied to us. Our procedures do not include verification or validation of that information – we expect our clients to provide records or access to records which will allow us to provide our services. This will generally mean that you additionally provide access to online portals of NZ IRD and ACC.
Ownership of information Your original documents belong to you but generally our workpapers belong to us. If agreed some workpapers or parts of workpapers prepared by us can be made available to you as client. If you transfer to another accountant – for compilation and taxation services, the documents we will transfer should include all information about your affairs that is essential for the new accountant to perform their professional services (unless there is a legal duty to withhold that information). This may include GST reconciliations, schedules of year end debtors and creditors, various tax-related calculations, and other details relating to opening balances.
Fees Our fees are normally based on hours worked charged at rates appropriate to the work performed and the levels of expertise required. Unless otherwise agreed, work is usually invoiced when jobs are finished. Some jobs will be invoiced on a progress basis. Our terms are payment by the 20th of the month following invoice and you can be charged interest at 2% per month plus collection fees for late payments. We ask you to personally guarantee to take full responsibility for any unpaid accounting fees. If a disagreement arises between us over our fees, if the matter cannot be resolved amicably by discussion (which is the preferred option) then we both agree to use the Fees Resolution Service of the New Zealand Institute of Chartered Accountants to resolve the disputes.
Commissions we receive Some of the software providers we engage on your behalf pay us commissions or discounts. Our aim is to pass these on to you by reducing our charges for the software accordingly. We retain a minor margin for administration.
Information and Disclosure We adhere to the professional standards, rules and ethical requirements of NZICA. Information we obtain in the course of this engagement is subject to confidentiality requirements, in addition to our obligations under the Privacy Act 2020. We will not disclose that information to other parties, without your express consent, except as required by law or professional obligations. We are bound by the disciplinary procedures and rules of the NZICA, and our work and files are subject to their practice review rules under which compliance with professional standards by members is monitored. These procedures and rules require us to disclose to the Institute, its reviewers and/or its disciplinary bodies our files and work papers including client information. By allowing us to undertake this engagement, you acknowledge that, if requested, our files relating to this engagement will be made available to the NZICA, its reviewers and/or its disciplinary bodies. The same ethical standards regarding confidentiality that we adhere to apply equally to the Institute’s reviewers
Confidentiality We are required to comply with the fundamental principle of confidentiality including the Privacy Act 2020 and exceptions to that – such as complying with Antimoney Laundering and Counter Financing of Terrorism disclosures.
Independence If we are aware that we are not independent from you we will state that in our report. Use and distribution of the financial information – we understand that the intended use and distribution of the financial information we compile is solely for your benefit. If this should change in any material respect, you will inform us immediately. We will not accept any responsibility to any person, other than you, for the contents of the financial information.
Use and distribution We will prepare these reports and tax returns for you our client. Neither we, nor any of our employees accept any responsibility for the reliability, accuracy or completeness of the compiled financial information nor do we accept any liability of any kind whatsoever, including liability by reason of negligence, to any person for losses incurred as a result of placing reliance on the compiled financial information.
Dispute resolution In the event of any complaints and allegations that our services performed fail to comply with professional standards and applicable laws and regulations, in the first instance you as client need to outline to us your concerns in detail as to which report does not comply to which standard or law. We have the right of reply, or if we find that we have made an error, then will apologise and correct that. If there is a further dispute then we reserve the right, with a mutual agreement between each of us, to put that concern to an independent chartered accountant mutually appointed to make a ruling on that dispute.
Conflicts of interest If there are any potential conflicts of interest associated with the service, we will in writing outline the nature of the conflict and state the measures and safeguards that will reduce the threat to an acceptable level (if necessary). You as client can always seek independent advice. If the conflict is critical then we will seek your confirmation in writing, that you wish us to undertake the engagement.
Acceptance We will not commence any engagement until you accept our engagement in writing by signing and dating our engagement letter or contract.
