Terms of Engagement

Terms of Engagement

Terms of Engagement
BDS Chartered Accountants Limited

I acknowledge and agree that as part of the ongoing quality control initiatives of the NZ Chartered Accountants of Australia and New Zealand, files relating to assignments completed on my/our behalf may be examined on a random test basis by an official reviewer appointed by the Institute for that purpose.

Compilation services
We will compile the Financial Statements from information provided by you, in accordance with the Compilation Engagement Standards issued by the NZ Chartered Accountants of Australia and New Zealand. We will provide a disclaimer to be attached to the Financial Statements.

Our compilation services will not result in the expression of an audit or review opinion or provide any other form of assurance on the Financial Statements. It is understood that:

  1. You will provide us with accurate and complete information to compile such financial statements;
  2. The responsibility for the accuracy and completeness of the assertions in the Financial Statements remains with you;
  3. You will attach our disclaimer when distributing the Financial Statements to third parties;
  4. The Financial Statements for a Company or Trust will be prepared in accordance with generally accepted accounting principles; which includes Statements of Standard Accounting Practice and Financial Reporting Standards, unless the company is an exempt Company as defined by the Financial Reporting Act 1993;
  5. The Financial Statement for a sole trader/partnership will be prepared on a Special Purpose Reporting basis to comply only with the requirements of the Income Tax Act 1994;
  6. You accept responsibility for all records and information supplied to us;
  7. You accept responsibility for any failure to supply us with all relevant records and information; and
  8. If you distribute the Financial Statements to any person without attaching to them our statement disclaiming liability, then you will indemnify us against all claims, actions, damages, liabilities, costs, and expenses (including but not limited to reasonable legal costs and expenses) incurred by us and arising out of or in connection with any action, claim or proceeding brought by any third party in connection with the services provided by us to you.
  9. We authorize you to furnish to any third party, financial information of mine/ours as you see fit that is requested in furtherance of our business activities.

Taxation Services

We will prepare taxation returns for the client as agreed.  It is understood and agreed that;

  1. We will be responsible for the checking of taxation assessments to the returns as filed;
  2. We will endeavour to advise of amounts and due dates of taxation installments payable.  However, the responsibility for paying the correct amount of taxation and paying on time remains with you, and not with us as your agents;
  3. Any penalties that may arise from late filing, incorrect estimates, or for any reason are payable by you as the taxpayer;
  4. You accept responsibility for any failure to supply us with all relevant records and information that might result in the Inland Revenue Department reassessment of the returns as filed;
  5. Our maximum liability for services rendered under this letter of engagement shall be limited to the fees paid to us for the work that we have provided by way of taxation services, notwithstanding the basis upon which the action is taken against you the client.  We shall not be liable for consequential, special, incidental or exemplary loss, damage or expense including without limitation, loss of profits or opportunities, notwithstanding whether we have been advised of their existence;  and
  6. You shall indemnify and hold both us and our employees from any claims, liabilities, costs (including the costs of professional advisors and also including our fees) that are brought against us or any of our employees that arise out of the taxation services provided by us under this letter of engagement except to the extent that we or our employees have been grossly negligent or have been guilty of wilful misconduct.

Other Services

We will provide you with other or specialist services on request and terms agreed.


Invoices are rendered by BDS Chartered Accountants Limited on a monthly basis for payment by direct debit.  I/We acknowledge the undertaking to pay all amounts by due date and accept liability for all costs incurred in collecting overdue accounts.  These costs may include but are not limited to interest, legal recovery costs, costs of reminder letters and court costs.