Engagement

Re: Professional Engagement Terms for Accounting Services

This letter confirms the terms of our appointment to act as your accountants and tax agents and it is intended that these terms will apply to all future assignments unless we enter into an alternative arrangement. We encourage you to read this letter carefully and if you have any queries or comments, please do not hesitate to contact our office at your convenience.

We understand that we are responsible for the preparation and lodgment of annual income tax returns and the preparation of annual financial statements relevant to your business structure. In preparing the returns, we rely upon account descriptions established in your accounting system and as you are aware, we do not undertake an audit of the transactions comprising such accounts nor verify the appropriateness of allocations made. In the event that we identify errors in recording the transactions, we will make the appropriate adjustments and refer these to you. However, due to the complexities involved in the preparation of accounts and tax returns, we rely on you to provide us with all information relevant to the completion of the assignment.

Documentation

On your behalf, we are responsible for lodging any documentation with the relevant authorities and we will continue to provide such documentation to you for your prior approval. We shall endeavour to ensure that these documents are then lodged by the due date. However, this is subject to the source information being received by us, allowing adequate time for preparation, finalisation and lodgement. A minimum of eight working weeks prior to the due date for lodgement of returns is when our office should receive all necessary information; but we encourage you to forward the relevant information when requested.
Your Responsibility for Internal Control Systems

The responsibility for the maintenance of your accounting system and internal control systems rests with you, including protection against fraud. We also wish to confirm that you are responsible for the maintenance and keeping of all books of account, unless we are specifically requested to perform this function as part of our ordinary accounting services.
Prudential Audits

Except for your self-managed superannuation fund our understanding is that no statutory audit of your financial statements will be required. We will process the financial information as presented to us without any review of your primary source documents, on the specific understanding that you have the necessary supporting documentation to satisfy any relevant authority. Accordingly, we are unable to express an opinion as to the accuracy of any financial statements and as you appreciate, our usual form of disclaimer will accompany such financial statements.
Substantiation Requirements

In relation to income tax returns, we will continue to advise you of the requirements under the substantiation provisions of the legislation and we are certain you appreciate the existing legislative requirement to maintain bona fide receipts. Nonetheless, all receipts must carry the following details as a minimum:

· The name of the supplier (including an ABN from 1 July 2000)

· The nature of the goods purchased

· The date of the transaction (and the receipt)

· The amount of the expense

Fees

We adopt a “user pays” policy where we have few, if any, fixed fees. Most work is billed according to the time expended and the level of expertise required. Typically, we allocate tasks to the lowest cost person in our office who has the necessary competence and expertise to undertake the work. This policy helps to keep our fees to a minimum. However, quality outcomes are assured via our high calibre quality assurance and review systems.

We usually encourage clients to do as much of their own work as possible. In this way, we spend less time and consequently our fees will be lower; providing you are able to present your work to us in a reasonable and appropriate form.

We regularly subscribe to industry surveys and we know our charges are competitive with average suburban accounting practices of similar size, although we pride ourselves on delivering a better than average service. And we don’t carry any unnecessary overheads. Therefore, if quality outcomes are important to you then you will find us extremely cost effective.

Our invoices are specific and detailed because we know clients expect to have a clear understanding of exactly what they are paying for. Our payment terms are net 14 days from date of invoice. If you find you are unable to meet these terms for any reason please call us to discuss your circumstances and be prepared to commit to a repayments plan.

We remind you that our corporate mission requires us to deliver excellent results; and quality outcomes rarely come cheaply. With this in mind existing clients may access our VIP Private Client Zone on our web pagewhere we have provided a detailed checklist offering advice and helpful hints as to how you might keep your accounting fees to a minimum.

Web Services

Our web site may be found at www.hadleys.com.au. At this site you will be able to access our public and special industry zones. Additionally, once you appoint us to act for you we will issue you with a personal identification number (PIN) so that you will enjoy access to our VIP Private Client Zone. It is incumbent upon you to regularly check our electronic bulletin board for important announcements
Additional Services

Any other services that you may request will be charged at our standard hourly rates. These services will be billed on an ongoing basis.
Billing Arrangements

We would be pleased to enter into a billing arrangement with you which will enable us to provide you with interim fees over the course of the year. For example, monthly or quarterly fees based on the total year estimated fee could be issued regularly in order to relieve the cash flow burden that lump sum fees can sometimes create.

In the absence of any further discussions or correspondence, we would consider that this letter reflects the principal terms of our engagement to act as your Accountants. Should you wish to discuss any aspect of this letter, please do not hesitate to contact our office.

We thank you for your support to date and look forward to being of continued service in the future.