Information for Clients
1 What we will do
What we will do for you depends on the type of engagement.
Accounts Preparation
1.1 Annual accounts will be prepared in accordance with the Financial Reporting Act 2013.
1.2 For entities that are not required to comply with the Financial Reporting Act 2013, and for partnerships, trusts, sole traders and other entities where the format of accounts is not dictated by legislation other than tax legislation we will prepare special purpose annual financial statements according to the principles contained in current income tax legislation. Periodic accounts for management are not governed by legislation and will be prepared on the basis requested by management.
1.3 The general basis of accounting used to compile the accounts will be described in the notes to the financial statements together with any significant departures from the basis. Significant departures will also be referred to in our compilation report.
1.4 We will inform you of any suspicions of omissions or irregularities that come to our notice.
1.5 We will provide a compilation report on all annual accounts that include a balance sheet.
Tax Returns
1.6 If we are preparing Tax Returns (whether for income tax, GST, FBT, PAYE or other taxes) we will prepare these from information provided by you, and will send these to you together with supporting schedules, disclosure schedules and elections where applicable. We will request that you review these and once satisfied that they are correct, sign where indicated and forward them to our office to be filed with Inland Revenue.
1.7 We will advise you of the amounts of any provisional tax, terminal tax, GST, FBT and / or employer deductions to be paid and the dates by which payments should be made.
All Engagements
1.8 We will use our professional skills to do the work you have requested based on information supplied by you. Unless agreed otherwise, the work will be performed in accordance with the appropriate engagement standard(s) issued by the New Zealand Institute of Chartered Accountants (the Institute).
1.9 We retain legal ownership of working papers prepared by us.
1.10 We set a limit on our liability to you for negligence or any other reason at five times the annual accounting fee.
1.11 We will explain or redraft any element of these terms to ensure that you understand them and think they are reasonable.
2 What we will NOT do
2.1 We will not conduct an audit or any other independent verification work.
2.2 Consequently we will not express any kind of opinion on the accuracy of the material we compile or its suitability for any purpose.
2.3 We will not necessarily establish or maintain independence. It is not a professional requirement to be independent before carrying out compilation work of this nature. However, any other relationships will be described in our compilation report.
2.4 We will not take active steps to identify weaknesses in your internal accounting system, errors, illegal acts or other irregularities, for example, fraud or non-compliance with law and regulations. However, should we become suspicious of any irregularities we will report it to you. .
2.5 We will not accept liability in negligence or for any other reason to anyone but you and your enterprises listed at the head of the main letter.
3 What you will do
3.1 You will deliver accurate, complete information needed to compile the accounts and returns or to provide consultancy advice promptly at the times agreed.
3.2 You remain responsible for the reliability, accuracy and completeness of the financial information compiled. You have delegated certain tasks to us, as tabled in the main engagement letter, and we are responsible for carrying out those tasks in a professional manner. You cannot abrogate the ultimate responsibility for ensuring that the financial information is compiled properly.
3.3 You will be required to review and approve for reasonableness and correctness any returns that are submitted on your behalf, and you will need to understand the importance and risks of signing income tax returns or other statutory compliance documents being true and correct records.
3.4 All advice should be obtained in writing. No responsibility is accepted for any verbal representation or advice. If you intend to rely on verbal advice you should obtain written confirmation from us.
3.5 You will inform us if the information we compile is intended to be disclosed to any person or body and how they are expected to use it. This does not apply to:
3.5.1 the directors, shareholders, partners, trustees or equivalent office holders of your enterprises as listed at the head of the main letter; and
3.5.2 the Inland Revenue Department.
3.6 You confirm that we have authority to communicate with and obtain information from any third party if the information sought is relevant to our work.
3.7 You agree that the Institute may have access to the records and information we hold that support our working papers. This is an essential part of the Institute’s quality assurance function. The likelihood that any particular engagement is selected is very small. All Institute employees and contractors are required to maintain the strictest confidentiality.
3.8 You will pay our fees on time. Invoices for work done in a calendar month will be delivered by the 7th working day of the following month and are due for payment by the 20th of that month at the appropriate rate. In addition to our fees, goods and service tax will be added and a charge may be added to cover disbursements.
3.9 If we are required to comply with or challenge any legally enforceable notice or demand issued by a third party including any government department or any court or tribunal in relation to or in connection with the services, you will pay reasonable professional fees and expenses, including legal fees and expenses.
3.10 You will let us know if any of these terms are unclear or not what you think is reasonable and we will explain or redraft to make sure you are happy.