INTRODUCTION
These terms and conditions set out the general terms under which we undertake our business.
We may change these Terms and Conditions from time to time. If there is a change to our Terms and Conditions, we will notify you of this change, and will post the new Terms and Conditions to our website at: www.avalonaccounting.ca/terms-and-conditions
You agree that if you do not respond to us within five business days of receiving notice of our new Terms and Conditions, you will be deemed to have accepted such new Terms and Conditions with no further action required to be taken by either party.
ʱʳ䴡
This engagement letter, the schedule of services, and our standard terms and conditions of business are governed by and should be construed in accordance with the laws of the Province of British Columbia, and the federal laws of Canada applicable therein.
Each party agrees that the courts of British Columbia will have exclusive jurisdiction in relation to any claim, dispute, or difference concerning this engagement letter and any matter arising from it. Each party irrevocably waives any right to object to any action being brought in those Courts, to claim that the action has been brought in an inappropriate forum, or to claim that those Courts do not have jurisdiction.
AUTHORIZATION AND REGISTRATION
We are registered with CPABC as chartered professional accountants and can be found on the register of members at
OUR SERVICES
You may request that we provide other services from time to time. We will issue a separate letter of engagement and scope of Services to be performed accordingly.
Since we are accepting this engagement as accountants, not as auditors, we request that you not record this as an auditing engagement in the minutes of your directors' or shareholders' meetings. Our services will not result in the expression of an audit opinion or any other form of assurance on the financial statements nor the fulfilling of any statutory or other audit requirements.
SERVICE-SPECIFIC TERMS AND CONDITIONS
COMPILATION OF FINANCIAL INFORMATION
We will not be responsible for any failure to advise or comment on any matter that falls outside the specific scope of your instructions. We will not accept responsibility for any event, loss, or situation unless it is one against which it is the expressed purpose of these instructions or the Services to provide protection.
We will perform the compilation engagement in accordance with the Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements, which requires us to comply with relevant ethical requirements.
A compilation engagement involves us assisting you in the preparation of compiled financial information. Since a compilation engagement is not an assurance engagement, we are not required to perform procedures to verify the accuracy or completeness of the information you provide to us for the compilation engagement. Accordingly, we will not express an audit opinion or a review conclusion, or provide any form of assurance on the compiled financial information.
INTENDED USE OF THE COMPILED FINANCIAL INFORMATION
You have requested that, on the basis of information that you will provide, we assist you in the preparation of the compiled financial information of Client Name, which comprise the balance sheet, and the statement of income and retained earnings, and Note 1, which describes the basis of accounting to be applied in the preparation of the compiled financial information.
The compiled financial information is intended to be used by the management of Client Name and third parties, current or potential lenders, suppliers, and stakeholders. Those parties may be in a position to request and obtain further information from the entity.
The compilation engagement is performed on the understanding that:
- a. The third party that intends to use the compiled financial information is in a position to request and obtain further information from the entity;
- b. A compilation engagement is appropriate for the intended use;
- c. You understand that a compilation engagement will not fulfill the entity's legal, regulatory or contractual provisions, if any, for an audit engagement or a review engagement; and
- d. You understand that the compiled financial information should not be used by third parties other than those who are in a position to request or obtain further information from the entity or have agreed with you the basis of accounting applied in the preparation of the compiled financial information.
Further, you acknowledge that you are responsible for:
- a. The compiled financial information;
- b. Selecting the basis of accounting to be applied in the preparation of the compiled financial information that is appropriate for the intended use;
- c. The accuracy and completeness of the information provided to us; and
- d. Attaching the compilation engagement report when distributing or reproducing the compiled financial information.
REPORTING
Unless unanticipated difficulties are encountered, our compilation engagement report will be substantially in the form outlined directly below.
COMPILATION ENGAGEMENT REPORT
To Management of Client Name:
On the basis of information provided by management, we have compiled the balance sheet of Client Name as at Year-end Date, the statement of income and retained earnings for the year then ended, and Note 1, which describes the basis of accounting applied in the preparation of the compiled financial information.
Management is responsible for the accompanying financial information, including the accuracy and completeness of the underlying information used to compile it and the selection of the basis of accounting.
We performed this engagement in accordance with Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements, which requires us to comply with relevant ethical requirements. Our responsibility is to assist management in the preparation of the financial information.
We did not perform an audit engagement or a review engagement, nor were we required to perform procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an audit opinion or a review conclusion or provide any form of assurance on the financial information.
Readers are cautioned that the financial information may not be appropriate for their purposes.
TIMELINES
Delivery timelines for annual accounting services are delivery of Compilation of Financial Information report and filing of your corporate tax return on the last day of the third month following the reporting period (i.e. March 31 delivery for period ending December 31). This may be extended up to the last day of the sixth month following the reporting deadline depending on your tax deadlines and staff availability (i.e. June 30 delivery for period ending December 31).
In order to meet these timelines, we require responses to our inquiries five business days before the end of the second month following the reporting period (i.e. five business days before February 28 for period ending December 31). We will follow up by email (or other method based on preference, if communicated to us in writing) three times and will be happy to provide any clarifications on the information we need to complete the Services.
If we receive no response from you, your reporting and tax filing may be delayed which can result in late filing penalties and interest. Failure to respond to our inquires by the by the last day of the fifth month following the reporting period (i.e. May 31 for period ending December 31), may result in your work items being rescheduled based on staff availability. Please refer to our Fees and Payment Policy for more details on how your accounting fees may be affected in these circumstances.
BOOKKEEPING
DOCUMENTATION
Please familiarize yourself and refer to our for details on required bookkeeping documentation and our follow-ups for missing information.
TIMELINES
Delivery timelines for monthly bookkeeping are delivery of reports on the last day of the month following the reporting period (i.e. October 31 for period ending September 30).
In order to meet these timelines, we require responses to our inquiries five business days before the end of the month following the reporting period.
If we receive no response, we will deliver incomplete reports and carry-forward questions for one month. Failure to respond to questions for two months in a row will incur additional hourly fees to complete the bookkeeping on a catch-up basis. On the first occurrence, we will send a courtesy invoice outlining the cost. On the second and subsequent occurrences, the hourly catch-up work will be due and payable upon receipt of the invoice. Please refer to our Fees and Payment Policy for more details on our bookkeeping fees.
COMMUNICATION
In performing the Services, we will send messages and documents electronically. As such communications can be intercepted, misdirected, infected by a virus, or otherwise used or communicated by an unintended third party, we cannot guarantee or warrant that communications from us will be properly delivered only to the addressee.
Therefore, we specifically disclaim, and you release us from, any liability or responsibility whatsoever for the interception or unintentional disclosure of communications transmitted by us in connection with the performance of the Services. In that regard, you agree that we will have no liability for any loss or damage to any person or entity resulting from such communications, including any that are consequential, incidental, direct, indirect, punitive, exemplary, or special damages (such as loss of data, revenues or anticipated profits).
We will not be treated as having notice, for the purposes of our accounts & tax responsibilities, of information provided to members of our firm other than those engaged on the specific assignment (for example, the information provided in connection with accounting, taxation, and other services).
If you do not consent to our use of electronic communications, please notify us in writing.
OWNERSHIP OF DOCUMENTS
All original documents obtained from you arising from the engagement will remain the your property. However, we reserve the right to make a reasonable number of copies of the original documents for our records.
Our engagement will result in the production of financial statements, tax returns, and supporting documents in electronic format. Ownership of these documents will vest in you. All other documents produced by us in respect of this engagement will remain the property of the Firm.
The Firm has a policy of exploring a legal right of lien over any client documents in our possession in the event of a dispute. The Firm has also established dispute resolution processes.
DISENGAGEMENT AND TERMINATION
Should we resign or be requested to resign, a disengagement letter will be issued to you to ensure that our respective responsibilities are clear.
Should we have no contact with you for a period of three months or more we may issue a disengagement letter and cease to act.
Each of us may terminate this agreement by giving not less than 30 days’ notice in writing to the other party except where you fail to cooperate with us or we have reason to believe that you have provided us or CRA with misleading information, in which case we may terminate this Agreement immediately. Termination will be without prejudice to any rights that may have accrued to either of us prior to termination.
If this Agreement is terminated, we will endeavour to make arrangements with you for the completion of work in progress at that time, unless we are required for legal or regulatory reasons to cease work immediately. In that event, we will not be required to carry out further work and will not be responsible or liable for any consequences arising from termination.
FEE & PAYMENT POLICIES
FEES
Our fees will be charged in accordance with your fee schedule. Fees are charged on either a fixed basis or on an hourly basis with a deposit retainer.
Our fees are exclusive of GST which will be added where it is chargeable.
Any disbursements we incur on your behalf and expenses incurred in the course of carrying out the Services will be added to our invoices where appropriate.
Unless otherwise agreed to the contrary our fees do not include the costs of any third party, counsel, or other professional fees.
FIXED PRICE ENGAGEMENTS
Fixed price engagements are paid in advance on a monthly basis.
For monthly bookkeeping, the fee paid relates to the month associated with the payment (i.e. February payment relates to bookkeeping for February) in order to provide staffing for that service. Each reporting period, we will request the information required to complete your bookkeeping. If the requested information is not supplied in a reasonable timeframe or thorough manner, we reserve the right to charge for catch-up work on an hourly basis. Please refer to Bookkeeping – Timelines for details of our escalation procedures.
For annual accounting services, the fees collected throughout the year relate to both our support throughout the year as well as your Compilation of Financial Information and Corporate Tax Return for that year. The fee is paid to reserve staff time during the scheduled work period (i.e. January 1 – June 30 for reporting period ending December 31). If all requested information is not supplied within the reserved staff time period (i.e. January 1 to June 30 for period ending December 31), we reserve the right to charge for the Services on an hourly basis.
Please refer to Compilation of Financial Information – Timelines for details of our timeline and follow-up procedures.
HOURLY ENGAGEMENTS
Before commencing the Services, you must pay our initial retainer. The retainer will be based on the expected cost of the Services.
These fees will be computed on the basis of time spent by principals and our staff, and on the levels of skill and responsibility involved. Please note that some services have minimum fees associated with them where noted in your Services Schedule.
Any retainer collected in excess of work performed or the minimum fee (whichever is greater) will be refunded to you or rolled into a future retainer.
PAYMENT
Direct deposit is our preferred method of payment to ensure timely and uninterrupted service.
NON-PAYMENT
After we begin work, if there is non-payment for two consecutive months, we will halt all work on your account. Service will resume only after outstanding payments are settled.
To restart services after a pause due to non-payment, please ensure all overdue amounts are paid. Once payment is received, we will resume work as promptly as possible.
We reserve the right to charge interest on late-paid invoices at the rate of 1% above bank base rates.
We intend to exercise these rights only where it is fair and reasonable to do so.
All NSF payments are subject to a $29 fee.
HOURLY RATES
Hourly rates vary by position and experience level of the team member performing the work and are subject to change:
- Administrative work $75/hour
- Bookkeeper $110/hour
- Senior Bookkeeper $135/hour
- CPA Student Accountant $150/hour
- Accounting Technician $150/hour
- Payroll Specialist $150/hour
- Senior Accountant $175/hour
- Assistant Client Manager $200/hour
- Production Manager/Assistant Client Manager $200/hour
- Senior Client Manager/Partner $300/hour
IMPLEMENTATION
We will only assist with the implementation of our advice if specifically instructed in writing.
INTELLECTUAL PROPERTY RIGHTS
We will retain all copyright in any document prepared by us during the course of carrying out the engagement save where the law specifically provides otherwise.
INTERPRETATION
If:
any provision of the engagement letter or schedule is held to be void, then that provision will be deemed not to form part of this contract.
a conflict between these terms of business and the engagement letter or appendices is found, the relevant provision in the engagement letter or schedules will take precedence.
LIEN
To the full extent permitted by law or professional guidelines, we reserve the right to exercise a lien over all funds, documents, and records in our possession relating to all engagements for you until all outstanding fees and disbursements are paid in full.
LIMITATION OF LIABILITY
We will provide our services with reasonable care and skill. Our liability to you is limited to losses, damages, costs, and expenses caused by our negligence or wilful default. You agree that any and all claims you may have against our firm or its professional staff arising out of all services provided to you by us, whether in contract, negligence, or otherwise known to the law, will be regarded as one claim and any liability to you will be limited to the maximum of $10,000. If this limitation of liability is insufficient for your purposes, we would be pleased to discuss with you a different limit that may result in our charging a higher fee.
You expressly agree that you will not bring any proceedings in any court of any jurisdiction advancing any claim against our individual professional staff and employees.
You expressly agree that any liability our firm may have to you will not be joint and several with any other party, but will be several, and limited to the percentage or degree of our fault in proportion to the fault or wrongdoing of all persons who contributed to the loss.
You expressly agree that any and all claims, whether in contract, negligence, or otherwise known to law arising out of our professional services under this engagement vest exclusively in you, and that no other party shall have a claim against us arising out of or connected to our services provided to you.
You agree that our liability for all claims you may have or bring in connection with the professional services rendered, whether arising out of or in addition to this agreement, will absolutely cease to exist after a period of two years from the date of:
performance of this engagement;
suspension or abandonment of this engagement; or
termination of our services pursuant to this agreement,
whichever will occur first, regardless of whether you were aware of the potential for making a claim against us within that period. Following the expiration of the aforesaid period, you agree that neither you, your agents or assigns will make any claim or bring any proceeding against us.
EXCLUSION OF LIABILITY FOR LOSS CAUSED BY OTHERS
We will not be liable for any losses, penalties, surcharges, interest, or additional tax liabilities due to the acts or omissions of any other person, to the provision to us of incomplete, misleading or false information, failure to provide us with relevant or complete information, or due to a failure to act on our advice.
EXCLUSION OF LIABILITY IN RELATION TO CIRCUMSTANCES BEYOND OUR CONTROL
We will not be liable to you for any delay or failure to perform our obligations under this engagement letter if the delay or failure is caused by circumstances outside our reasonable control.
EXCLUSION OF LIABILITY FOR CONSEQUENTIAL DAMAGES
We will be liable to you only for direct damages. You agree to absolutely indemnify us, including in cases of negligence or willful breach, for any and all consequential damages.
EXCLUSION OF LIABILITY RELATING TO THE DISCOVERY OF FRAUD, ETC.
We will not be responsible or liable for any loss, damage, or expense incurred or sustained if information material to the service we are providing is withheld or concealed from us or wrongly misrepresented to us or from fraudulent acts, misrepresentation, or wilful default on the part of any party to the transaction and their directors, officers, employees, agents or advisers. This exclusion will not apply where such misrepresentation, withholding, or concealment is or should (in carrying out the procedures which we have agreed to perform with reasonable care and skill) have been evident to us without further inquiry.
INDEMNITY FOR UNAUTHORIZED DISCLOSURE
You agree to indemnify us and our agents in respect of any claim (including any claim for negligence) arising out of any unauthorized disclosure of our advice and opinions, whether in writing or otherwise. This indemnity will extend to the cost of defending any such claim, including payment at our usual rates for the time that we spend in defending it.
LIMITATION OF AGGREGATE LIABILITY
You have agreed that you will not bring any claim of a kind that is included within the subject of the limit against any of our principals or employees; on a personal basis.
INDEMNITY FOR ONLINE ACCOUNTS
If you choose to share with us any log-in information for online banking or other online financial services websites, you acknowledge that doing so may affect your insurance and potentially result in denial of insurance coverage in the event of a loss. You confirm that, before providing us any such information, you have reviewed the terms of your insurance and satisfied yourself that providing us such information will not result in the denial of an insurance claim. You agree to fully indemnify us from any loss as a result of sharing such information with us, except a loss that arises out of our gross negligence or wilful misuse of your log-in information.
NON-RESPONSE ESCALATION PROCEDURE
If we do not receive a response to our requests, we will send reminders at two-week intervals for a period of six weeks.
Failure to respond within this six-week period will result in:
your file being moved to the bottom of our processing queue;
for monthly bookkeeping services, please refer to the Payment Terms section of these terms; and
late completion of the Services and potential adverse consequences, such as interest or penalties from government agencies.
Continued failure to respond within reasonable timeframes or for three months may result in discontinuation of services. Please refer to the Disengagement section of these Terms and Conditions.
RELIANCE ON ADVICE
We will endeavour to record all advice to you on important matters in writing. Advice given orally is not intended to be relied upon unless confirmed in writing. Therefore, if we provide oral advice (for example during the course of a meeting or a telephone conversation) and you wish to be able to rely on that advice, you must ask for the advice to be confirmed by us in writing.
RETENTION OF RECORDS
You have a legal responsibility to retain documents and records relevant to your tax affairs. During the course of our work, we may collect information from you and others relevant to your affairs. We will return any original documents to you if requested.
THIRD-PARTY
Any advice we give you will be supplied on the basis that it is for your benefit only and you agree that you will not disclose such advice, in whole or part, to any third party without our prior written consent. Our advice may not be used or relied upon for any other purpose or by any other person other than you without our prior written consent. If our advice is disclosed to any third party (with or without our consent), then we accept no responsibility or liability to that third party for any consequences that may arise to them, should they rely on the advice.
If any documents or statements that refer to our name are to be circulated to third parties, please consult us before they are distributed.
TIMETABLE
The Services will be carried out on a timeline to be determined between us on an ongoing basis.
The timing of the Services will, in any event, be dependent on the prompt supply of all information and documentation as and when required by us.
USE OF INFORMATION
USE OF INFORMATION
You acknowledge that we will have access to all information about identified individuals (“personal information”) in your custody that we require to complete our Engagement.
Our services are provided on the basis that:
- You represent to us that you have obtained any required consents for our collection, use, disclosure, storage, transfer, and process of personal information required under applicable privacy legislation and professional regulation; and
- We will hold all personal information under the conditions set out in the CONFIDENTIALITY AND PRACTICE REVIEW section.
CONCLUSION
This letter supersedes any previous engagement letter. Once it has been agreed, this letter will remain effective until it is replaced.
You or we may vary or terminate our authority to act on your behalf at any time without penalty. Notice of variation or termination must be given in writing.
If this letter is not in accordance with your understanding of the scope of our engagement or your circumstances have changed, please let us know. This letter will be effective for future years unless we advise you of any change.