Connect2 Chartered Accountants is a chartered accountancy firm in Tauranga, New Zealand.

Thank you for discussing the prospect of this practice undertaking certain work for you. To ensure that we understand your needs, we have set out below the services we would undertake for you, the obligations and responsibilities we would assume, and the areas which you would be responsible for.

1 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 reasonableness and correctness, 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.

The information you are to supply and any other information that we consider necessary to complete the engagement must be provided on a timely basis in order that the engagement can be completed on a timely basis.

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.

2 Independence
Independence is not a requirement for a compilation engagement

If we are aware that we are not independent of any of your entities, this fact will be stated in our report. However, we will not conduct a comprehensive review to determine whether we are, or not, independent.

3 Use and Distribution of the Financial Statements
We understand that the intended use and distribution of the financial information we will compile is for taxation purposes. If this should change in any material respect, you will inform us immediately. We will not accept responsibility to any person, other than you, for the contents of the financial statements. No person should rely on the financial statements without having an audit or review engagement conducted.

4 Fees
Our fees are normally based on the number of hours worked charged at rates appropriate to the work performed and the levels of expertise required.

In the unfortunate circumstance that 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 Australia - New Zealand Institute of Chartered Accountants to resolve the matter. Details of this Service are available from the Institute. You should be aware that, like all other providers of services, we are entitled to retain possession of your records that have been used in relation to this engagement until outstanding fees are settled.

5 Liability
Our liability for any loss or damage you suffer caused by our breach of contract, tort (including negligence), breach of fiduciary duty or other actionable wrong of any kind shall be limited as follows:-

a) We shall have no liability for any consequential or indirect loss of profit;

b) Our liability will be reduced to take into account any contributory negligence on your part pursuant to the Contributory Negligence Act 1947;

c) In the event that more than one person caused or contributed towards your loss, our liability to you will be limited to the proportion of the loss that the Court would apportion to us under section 17 of the Law Reform Act 1936, based on an assessment of our degree of responsibility and the responsibility of the others who contributed to the loss (whether or not those other persons are able to meet any liability they may have);

d) Notwithstanding the foregoing, our liability for loss shall in no circumstances exceed the amount of 5 times the fees paid (the liability cap) or such other amount specified as the liability cap in the engagement letter.

Where there is more than one addressee to the letter, the amount of our liability as derived above is a total limit to be allocated between addressees, such allocation being entirely a matter for the addressees, who will be under no obligation to inform us of it.

6 Time Limit for Claims
No legal proceedings may be commenced later than two years after the date on which the party bringing the claim became aware or ought reasonably to have become aware of the facts giving rise to the claim.

In any event, no legal proceedings may be commenced more than four years after the date on which the facts giving rise to the claim occur.

7 Indemnity
To the maximum extent permitted by law, you agree to indemnify Connect2 Chartered Accountants, its principals and staff, and to hold them harmless against any liabilities, losses, expenses and other costs reasonably incurred in connection with any claims made against them by any third party arising out of or in connection with the services. This clause is for the benefit of the third parties referred to herein and they may enforce this clause under the Contracts (Privacy) Act 1982.

8 Personal Indemnity
In consideration of your requesting on behalf of yourself or your entities that we provide services to the client, you personally agree to indemnify us, and if you have signed these terms of engagement on behalf of your entities you personally agree to guarantee and also indemnify us as follows:-

a) For so long as the engagement is in place between the client and us.

b) For the full and punctual payment by the client of all amounts owed to us by the client.

9 Contract Solely with Connect2 Chartered Accountants (Jocelyn P Gascoigne Ltd)
You agree that in relation to the services and the contract the client relationship is solely with Connect2 Chartered Accountants. Accordingly, you agree not to bring a claim of any nature against any principal, employee, contractor or subcontractor of Connect2 Chartered Accountants.

10 Right to Claim a General Lien over Books and Records
It is agreed that Connect2 Chartered Accountants shall be entitled to exercise a general lien over all the books, records, related documents and other such chattels that may come into the possession of Connect2 Chartered Accountants for the purpose of performing professional services for (yourself or your entities) until all costs and charges whatsoever of Connect2 Chartered Accountants for professional services of any nature to (the entity) have been fully paid.

11 Information and Disclosure
The conduct of this engagement is in accordance with the professional standards, rules and ethical requirements of the New Zealand Institute of Chartered Accountants. 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, except as required by law or professional obligations.

However, as members of the Australia - New Zealand Institute of Chartered Accountants, we are subject to and bound by the disciplinary procedures and rules of the Institute, and our work and files are subject to the practice review rules of the Institute under which compliance with professional standards is monitored. These procedures and rules require us to disclose to the Institute, its reviewers and/or its disciplinary bodies our files and workpapers including client information. By allowing us to undertake this engagement (whether or not you sign this letter), 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. We assure you that the same ethical standards regarding confidentiality that we adhere to apply equally to the Institutes reviewers.

12 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.

However, if your affairs at some time in the future are handled by another Chartered Accountant, we will make available, as required by the Code of Ethics, such information regarding your affairs that is essential to enable your new Chartered Accountant to perform the services we previously provided.

Our work may involve the collection of personal information relevant or incidental to the engagement. Any such information will be held at our offices and will be retained for as long as may be relevant to the engagement, and, except where otherwise noted in this letter, will only be used or disclosed for purposes related to the engagement. Individuals concerned will be able to contact us to access information held concerning them and, if necessary, seek correction to that information. You confirm we have authority to communicate with and obtain information from any third party (including the Inland Revenue Department) if the information sought is relevant to our engagement.

We will store tax records that we hold on your behalf for a period of seven years after the applicable balance date. At the end of that period, unless you have asked us to send that information to you, the records will be destroyed using a secure document destruction service.

Fees and Credit Terms


Connect2 Chartered Accountants base fees on the time spent on your business matters. In fixing a fee, we also take into account:

  • The skill, specialised knowledge and responsibility required
  • The importance of the matter to you and result achieved
  • The urgency and circumstances in which the business is transacted
We calculate and bill at the completion of each job. Each fee invoice represents work completed by us to the date indicated in that account. An updated statement will either accompany this invoice (Invoice/Statement) or be forwarded at the end of the month.

At the base of each statement there is a detachable remittance advice. You are requested to return this advice with your payment. Please keep your tax invoice for GST purposes.

Disbursements are payments made by us on your behalf. These costs are passed on to you as part of our normal monthly billing.

Payment is due on the 20th of the month following the date of the invoice and may be made by cheque or direct credit to our bank account.

If there are any issues arising concerning the amount of our fee, they must be communicated to us in writing within 30 days of the date of the invoice; otherwise it is agreed that the amount is due and payable.

Should you require any further information or clarification, please do not hesitate to contact us.

If the work is carried out for a limited liability or other incorporated body, it is acknowledged that the work is being carried out at request of those persons who sign the engagement letter, and such persons accept responsibility jointly and severally with the entity and each other for the payment of the account.

If payment of the account is not received by due date Connect2 Chartered Accountants shall be entitled to look at any or all of the undersigned for payment without being obliged first to seek or enforce payment from the entity itself.

If payment of any account is not received by the due date:

a) We may decline to continue further work until the account is paid or arrangements made for payment.
b) In accordance with normal commercial practice we may charge a late payment penalty on any balance outstanding after the due date at the rate of 1.5% per calendar month or part thereof compounded from due date of actual payment.
c) We reserve the right to place any outstanding accounts in the hands of our solicitors or a debt collection agency for collection by legal action if necessary. In those circumstances you consent to Connect2 Chartered Accountants providing its solicitors or debt collection agency with such details relating to you or your entity as may be necessary to collect such outstanding account. In the event that the account is placed with our solicitors or debt collection agency all fees and/or Court costs incurred in recovery action will be added to the amount owing and will be recoverable from you.

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