Terms of Engagement
On the basis of information you provide, we will prepare either specified financial information or a set of financial statements. We will prepare these in accordance with Service Engagement Standard No.2 Compilation of Financial Information (SES-2) issued by the New Zealand Institute of Chartered Accountants (NZICA). The financial information will be prepared in accordance with the appropriate financial reporting framework or basis of accounting and this will be disclosed as part of the financial information. We will present a true and fair view of the financial information, unless for some reason this isn't possible, in which case we will note any departures from that view. Any known departures from the financial reporting framework/basis of accounting used will be disclosed within the financial statements and referred to in our report. We will not provide an audit or review with this engagement, so we will not express any assurance.
We expect our compilation report sent to you to read as follows:
i. Extent of Services
We do not accept any responsibility for the accuracy and completeness of the accounting records and other information you supply to us or for the reliability, accuracy and completeness of the financial information compiled on the basis of those records and information. We also do not accept any responsibility for the maintenance of adequate accounting records, an adequate internal control structure and the selection and application of appropriate accounting policies within your organisation. In addition you are solely responsible to users of the financial information we compile. You will be required to review and approve the final (returns or reports) for correctness, as they will be dependent on the information you have provided , and you will need to understand the importance and risks of signing income tax returns or other statutory compliance engagements, as being true and correct statutory records. Please supply the information that we consider necessary to complete the engagement on a timely basis so we can finish sooner. Our engagement does not include the investigation or discovery of internal control weaknesses, errors, illegal acts or other irregularities, including without limitation, fraud, or non-compliance with laws and regulations. However, we will inform you of any such matters which come to our attention during the course of our engagement. If, for any reason, we are unable to complete the compilation of your financial information, or we consider the information to be misleading, we may refer to such matters within our compilation report or we may determine, at our sole discretion, not to issue a report.
ii. 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 will 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.
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 1993. 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 Institute, its reviewers and/or its disciplinary bodies. The same ethical standards regarding confidentiality that we adhere to, apply equally to the Institute's reviewers.
Fees
Our fees are normally based on hours worked charged at rates appropriate to the work performed and the levels of expertise required. 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 dispute.
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.
Ownership of work papers
Material that you provide to us remains yours and will be returned to you when the engagement is completed. Work papers that we create remain our property.
Authority
We will send you an engagement letter outlining our terms, and ask you to sign and return this letter. Within this we will ask you to give us signed authority to proceed with your work, and to communicate with and obtain information from any third party, including the Inland Revenue Department, and the ACC, relevant to preparing your financial information. Also we ask you to authorise us to act as tax agent for you for all tax types with the IRD until further notice.(finished)