Terms of Engagement (not for small tax returns including rental partnerships. For larger clients only)
John Harrison (ABN: 48 143 639 112, “John Harrison Accountants”) are in the business of providing taxation, accounting, consulting and other services.
Many of John Harrison Accountants services are subjective rather than definitive. It follows that our performance and the suitability of our services are very dependent on the information you have supplied us.
The terms and conditions of engagement detailed below apply to larger clients regardless of whether we are quoting or supplying and whether we charge or not. These conditions will be effective unless changed on this web site or we advise you accordingly.
Please print this document and then tick the boxes next to the services you have engaged us to undertake. Sign the document to acknowledge that you have read it and return it to our offices.
If you would like to discuss any matters in relation to the terms of our engagement or the contents of this document, please do not hesitate to contact us.
Client means the person or entity to whom the good or service is supplied by John Harrison Accountants.
Services include but are not limited to goods and services shown on the home page of our web site. The main categories of services available are listed below.
Quotation means a quotation submitted by John Harrison Accountants to a Client in which these terms and conditions are, or are deemed to be, incorporated.
Account means the GST sales invoice issued by John Harrison Accountants to a Client in which these terms and conditions are, or are deemed to be, incorporated.
You must agree that we undertake one or more of the following categories of services for you at your request. Please tick the box next to the services you will require. We advise that by ticking a box adjacent to a service, printing and signing this document you agree to the standard engagement conditions of service as hereunder.
Our audit will be conducted pursuant to relevant statutory and other requirements with the objective of expressing an opinion on the financial report.
We will conduct our audit in accordance with Australian Auditing Standards to provide reasonable assurance as to whether the financial report is free of material misstatement. Our procedures will include examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial report, and the evaluation of accounting policies and significant accounting estimates. These procedures will be undertaken to form an opinion whether, in all material respects, the financial report is presented fairly in accordance with Australian accounting standards, the Australian Auditing and Assurance Board standards and other mandatory professional reporting requirements so as to present a view which is consistent with our understanding of the Client’s financial position, the results of its operations and its cash flows to its members.
The work undertaken by us to form an opinion involves judgement, in particular regarding the nature, timing and extent of the audit procedures for gathering of audit evidence and the drawing of conclusions based on the audit evidence gathered. In addition, there are inherent limitations in any audit, and these include the use of testing, the inherent limitations of any internal control structure, the possibility of collusion and the fact that most audit evidence is persuasive rather than conclusive. As a result, our audit can only provide reasonable – not absolute – assurance that the financial report is free of material misstatement.
We will disclaim any assumption of responsibility for any reliance on the report or on the financial statements to which the report will relate, to any person other than the members, or for any purpose other than that for which it will be prepared.
In addition to our report on the financial report, we expect to provide you with a separate letter concerning any material weaknesses in the internal control structure that come to our notice.
We remind you that the responsibility for the preparation of the financial report, including adequate disclosure, is that of the governing body of the client. This includes the maintenance of adequate accounting records and internal control structure, the selection and application of accounting policies, and the safeguarding of the assets of the client. As part of our audit process, we will request from management written confirmation concerning representations made to us in connection with the audit.
The conduct of our audit in accordance with Australian Auditing Standards means that information acquired by us in the course of our audit is subject to strict confidentiality requirements. Information will not be disclosed by us to other parties except as required or allowed for by law or professional standards, or without your express consent. Our audit files may, however, be subject to review as part of the quality control review program of CPA Australia which monitors compliance with professional standards by its members. We advise you that by priting and signing this docuemnt you acknowledge that, if requested, our audit files relating to this audit will be made available under this program. Should this occur, we will advise you. The same strict confidentiality requirements apply under this program as apply to us as your auditor.
We look forward to full co-operation with your staff and we trust that they will make available to us whatever records, documentation and other information are requested in connection with our audit
Our fees are charged in accordance with our standard schedule of fees as from time to time amended.
2.2 Non Audit Accounting Services
We are able to provide one or more of the following as applicable to you or as requested by you, the client:
- Preparation of Annual Income Statement and Balance Sheet, commencing with [insert year] financial year.
- Preparation of Income Tax Returns.
- Review of Company Annual Statement.
- Preparation of Company Minutes etc. to comply with statutory requirements.
- Review and assist in preparation of your BAS/GST, PAYGW and PAYG obligations to the ATO as necessary.
- Preparation of your FBT return.
- Preparation of your FBT Declarations.
- 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.
- Advice as requested from time to time.
- Other as discussed
If appointed we will act as your tax agent. This gives us access to information from the ATO via the Tax Agents Portal. We will prepare your income tax returns from information that you provide to us. We either show you or send the prepared returns to you for checking and signature together with a copy for your records and an estimate of tax payable or refund due. Returns we prepare are usually lodged electronically. The address for communications between you and the Taxation office are shown on the front cover of the copy we give you of these returns.
Taxpayers are responsible under self assessment to keep full and proper records in order to facilitate the preparation of a correct return. The Commissioner of Taxation usually has 4 years from the date that tax becomes due and payable on the return to review the return, or unlimited time where there is fraud or evasion. The taxpayer generally only has 2 years from date of Assessment in which to object to or amend their return. You should check your return before signing to ensure that the information in the return is accurate, and you should retain all pertinent records for at least 4 years in case you are selected for audit.
Where taxation law is uncertain in your circumstances you can request a private ruling from the Commissioner of Taxation by providing the Commissioner with all relevant facts. The Commissioners ruling is binding upon the Commissioner, so long as there is no material difference between the facts set out in the ruling and the actual facts, unless the ruling is found to be incorrect and the correct application of the law results in a better outcome for you. If you disagree with the Commissioners ruling, or the Commissioner fails to issue a ruling, you can lodge an objection so long as you do so within the appropriate time frame allowed.
We understand that an audit of the financial statements is not required, and therefore we will not be expressing an opinion as to the truth and fairness of those statements.
Special purpose financial statements will be prepared as necessary in accordance with our compilation reports that are part of the terms of our engagement. Please therefore review our compilation reports and indicate you have done so by printing them out and signing the bottom.
To help us prepare your financial statements/tax returns, you will need to provide us the following as relevant to you as the client:
- Up to date and reconciled General Ledger/Cash Book.
- Electronic information (if any)
- Copies of your Business Activity Statements that were reported to ATO.
- Any loan documentations.
- Copy of Bank Statements.
- Cheque Butts.
- Bank Deposit Books.
- Invoice/Receipt Books.
- Details of new assets purchased (including cars for FBT purposes).
- Completed FBT Questionnaire.
- PAYGW summaries.
- Other items as requested from time to time.
We see our role as helping you help yourself and if you prepare books of account teaching you how as you or your staff will be responsible for maintaining and regularly balancing them and the maintenance of an adequate accounting and internal control system.
Our involvement is this type of engagement will not disclose fraud, defalcations or other irregularities which may occur. However, any material weaknesses in the accounting or internal control systems which come to our notice will be drawn to your attention.
Any information acquired by us in the course of our engagement is subject to strict confidentiality requirements. Information will not be disclosed by us to other parties except as required or allowed for by law or professional standards, or with your express consent. Our files may, however, be subject to review as part of the quality control review program of CPA Australia which monitors compliance with professional standards by its members. We advise you that by returning an acknowledgement that you have read this document you also acknowledge that, if requested, our files relating to this engagement will be made available under this program. Should this occur, we will advise you. The same strict confidentiality requirements apply under this program as apply to us.
Non Audit Fees
As professionals it is our aim to provide a more total service. Our fees are charged in accordance with our standard schedule of fees as from time to time amended.
2.3 Other Services
As professionals it is our aim to provide a more total service. Our web site lists a wide range of ancilliary services we are able to perform for you.
Ancilliary Services Fees
Our fees are charged in accordance with our standard schedule of fees as from time to time amended.
The conduct of John Harrison Accountants will be in accordance with the standards and ethical requirements of the Australian Society of CPA’s and this means that the information acquired by us in the course of the engagement is subject to strict confidentiality requirements. That information will not be disclosed by us to other parties except as required or allowed for by law or professional standards, or with your express consent. Our files may, however, be subject to review as part of the quality control review program of Australian Society of CPA’s which monitors compliance with professional standards by its members. We advise you that by signing this document you acknowledge that, if requested, our files relating to this engagement will be made available under this program. Should this occur, we will endeavor to advise you. You have agreed to arrange for reasonable access by us to the required people and documents and are responsible for both the completeness and accuracy of the information supplied to us.
- Unless previously withdrawn, a quotation is valid for thirty (30) days or such other period as stated therein. A quotation is not to be construed as an obligation to sell but merely an invitation to treat and no contractual relationship shall arise until the Client's order has been accepted by John Harrison Accountants in writing.
- John Harrison Accountants shall not be bound by any conditions attaching to the Client's order or acceptance of a Quotation and, unless such conditions are expressly accepted by the John Harrison Accountants in writing, the Client hereby acknowledges that such conditions are expressly negatived.
- Prices specified in a Quotation are subject to alteration without notice. Unless otherwise stated in writing by John Harrison Accountants, prices quoted shall be exclusive of handling, delivery, agents charges and any charge, duty or impost including goods and services tax (GST).
- All quotations are subject to John Harrison Accountants having the right to refuse to supply services if they are not satisfied as to the credit worthiness of the Client.
Unless specifically advised otherwise in writing our fees, which will be billed as work progresses, are based on the time required by the individuals assigned to the engagement plus out-of-pocket expenses. Individual hourly rates vary according to the degree of responsibility involved and the experience and skill required.
Time of delivery is not guaranteed without special undertaking. Any programme given for delivery or collection of goods is given or agreed by John Harrison Accountants in good faith, and every endeavour will be made to comply therewith. John Harrison Accountants shall not, however, be liable for any loss or damage consequential or otherwise arising through its failure to make delivery by the due date or time.
Books and records supplied to John Harrison Accountants shall be at the Client's risk immediately upon delivery to us. We shall however endeavour to return your books and records promptly and give you as soon as compiled, copies of any reports we may prepare
8 Inspection and Acceptance
The Client shall inspect all of our work upon delivery and shall within forty-eight hours of delivery give notice to John Harrison Accountants of any matter by which the client alleges that the services are not in accordance with the Client's order. Failing such notice and, to the extent permitted by statute, our work shall be deemed to have been delivered and accepted by the client.
9 Terms of Payment
- Payment by the Client for services is due within 30 calendar days of the end of the month in which the services are invoiced. If the Client fails to make payment in accordance with this clause, all amounts owing by the client to the John Harrison Accountants on any account shall immediately become due and payable. Outstanding amounts may bear interest of the rate of 10 per centum per annum calculated on a daily basis. If a credit card is used for the payment of invoices a surcharge of 2.5% may be added.
- The Client must pay John Harrison Accountants the cost of any bank fees arising from dishonoured cheques paid by the client to the John Harrison Accountants, and must also pay an administrative charges and for any legal or other debt collection costs incurred by the John Harrison Accountants.
- John Harrison Accountants may vary or withdraw any credit arrangements at any time and without any liability whatsoever to the Client or any party claiming through the Client.
- If John Harrison Accountants has any liability to pay the Goods and Services Tax (“GST”) on any goods or services supplied to the Client, the Client shall pay to John Harrison Accountants the amount of such GST at the same time as amounts otherwise payable to John Harrison Accountants.
10 Title and Storage
- Property in the services supplied by John Harrison Accountants to the Client pursuant to these terms and conditions shall not pass to the Client until those services and other services supplied by John Harrison Accountants to the Client have been paid for in full.
- In the event of the Client not taking delivery of services manufactured specifically to design requested by the Client, John Harrison Accountants reserves the right to charge for the services.
- Until the services have been paid for in full John Harrison Accountants shall have a lien on the books and records of the Client in its possession
- The provisions of this clause apply notwithstanding any arrangement pursuant to which John Harrison Accountants grants credit to the Client.
11 Force Majuere
If in the performance or observance of its obligations John Harrison Accountants is prevented, restricted or affected by reason of a force majeure including strike, lock out, industrial dispute, raw material shortage, breakdown of plant, transport or equipment or any other cause beyond the reasonable control of John Harrison Accountants, John Harrison Accountants may, in its absolute discretion give prompt notice of such cause to the Client whereupon John Harrison Accountants is excused from such performance or observance to the extent of such prevention, restriction or affectation.
12 Liability of John Harrison Accountants
Except as expressly provided herein and to the extent permitted at law:
- John Harrison Accountants shall not be liable, whether in contract, tort or otherwise in respect of defects in services delivered or for any injury, damage or loss resulting from such defects or from any work done in connection therewith except to the extent that any statute applicable to these Terms and Conditions prevents the exclusion, restriction or modification of such liability;
- John Harrison Accountants shall not be liable to the Client for any loss of profit howsoever arising nor shall John Harrison Accountants be under any liability whether in contract, tort or otherwise nor for any injury, damage or loss whether consequential or otherwise except as is expressly provided in these Terms and Conditions;
13 Governing Law
These terms and conditions of supply and any contract including them shall be governed by the laws of the State of Tasmania and the jurisdiction of the Tasmanian Courts.
- These terms:
- do not transfer any interest in any intellectual property;
- do not oblige either party to enter into any agreements for supply;
- contain the entire terms and conditions of supply and supersedes all prior communications and understandings on that subject matter
- The failure of John Harrison Accountants to insist on performance by a Client of any obligation under this deed is not a waiver its right:
- to insist on performance of, or to claim damages for breach of that obligation unless that Client acknowledges in writing that the failure is a waiver; and
- at any other time to insist on performance of that or any other obligation of the other party under this deed.
- These terms may be varied from time to time by John Harrison Accountants.
I/we have read and understood the above Terms of Supply and, where necessary, have sought independent legal advice in relation to them.
I/we agree to abide by these terms.
Signed by/for ……………………………………..:
Entity for if applicable
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