Terms of Engagement

Set out below are our standard scope and terms for all engagements for which we have been appointed as accountants and/or taxation advisors.

Our engagements are conducted in accordance with the relevant standards and ethical requirements of the CPA Australia.


All accounting services are provided as your agents and on the basis that you will make full disclosure to us of all relevant information. Assistance may be required through discussion and detailed explanations and, if necessary, we may require that any material representations be put in writing.

Where our services include the compilation of a special purpose financial report, this report will be prepared on the basis of the information you provide and, in accordance with APS 9 “Statement on Compilation of Financial Reports”, a financial report for the entity will be prepared in respect of the relevant period end. Our procedures use accounting expertise to collect, classify and summarise the financial information, which you provide, into a financial report. Our procedures will not include verification or validation procedures. No audit or review will be performed and accordingly no assurance will be expressed.

Nature and Limitations

We will rely on you for both the completeness and accuracy of the information supplied to us and you are solely responsible to users of the special purpose financial report compiled by us. This includes responsibility for the maintenance of adequate accounting records, an adequate internal control structure and the selection and application of appropriate accounting policies.

Our engagement cannot be relied upon to disclose irregularities including fraud, other illegal acts and errors that may exist. However, we will inform you of any such matters which may come to our attention.

The special purpose financial report will be prepared in accordance with relevant Australian Accounting Standards as detailed in Note 1 of the financial report. Any known departures from this financial reporting framework will be disclosed within the financial report and, when considered necessary, will be mentioned in our compilation report.

If for any reason, we are unable to complete the compilation of your special purpose financial report, or we consider the information to be misleading, we may refer to such matters within our compilation report or we may determine not to issue a report.

The special purpose financial report will be prepared exclusively for your benefit unless otherwise specified in your term sheet. We will not accept responsibility to any other person for the contents of the financial report. No person should rely on the financial report without having an audit or review conducted.

Taxation Services

Where we are engaged as your Tax Agent, we will liaise and correspond with the Australian Taxation Office, as necessary, in order to fulfill our role as Tax Agent.

Income tax legislation places the responsibility for information contained in tax returns with the individual and in the case of companies with the Company, through its Public Officer. Accordingly, you will be responsible for maintaining adequate financial and accounting records to enable us to carry out our assignment. You should also maintain a capital gains tax register covering all specified assets acquired after 19 September 1985.

All taxation services will be provided as your agents and on the basis that you will make full disclosure to us of all relevant information.

A taxpayer is responsible under self assessment to keep full and proper records in order to facilitate the preparation of a correct return. Whilst the Commissioner of Taxation will accept claims made by a taxpayer in an income tax return and issue a notice of assessment, usually without adjustment, the return may be subject to later review. Under the taxation law such a review may take place within a period of up to 5 years after tax becomes due and payable under the assessment. Furthermore, where there is fraud or evasion there is no time limit on amending the assessment. Accordingly, you should check the return before it is signed to ensure that the information in the return is accurate.

Secretarial Services

Where the address of our office is used by a client company as the Registered Office, it is solely for the purpose of acting as agent for the receipt of any documents delivered or served upon the Company. The address of our office may not be used as the Principal Place of Business by a client company unless a specific circumstance exists and approval in writing has been given by us to such situation. Any documents received will be forwarded to the Company Secretary or dealt with in such manner as you may, from time to time, direct.

It is the responsibility of the company secretary to keep and maintain the company registers and keep the ASIC records up-to-date.  Where instructed we will prepare the relevant forms and minutes and lodge with ASIC.


The conduct of our work is carried out in accordance with the relevant standards and ethical requirements of the CPA Australia. This means that information acquired by us in the course of our work is subject to strict confidentiality requirements. 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 if requested, your files relating to this work will be made available under this program. The same strict confidentiality requirements apply under this program as apply to us as your accountants and/or taxation advisors.

 Electronic Communication/Cloud

As part of our client service we may communicate with you and with others on your behalf by email. Email communications sent without encryption can be intercepted and may be read by a third party. Other potential risks include non-delivery or failure to read an email in a timely manner.

The use of cloud Services can also be compromised by third parties and your confidential information may be accessed.

In this regard you agree to indemnify and release SJM Advisors from any claims from the use of Cloud Services used in the transfer of information between yourself and our office.

Record Keeping

The obligation to maintain financial records are detailed within income tax legislation, various requirements in respect of capital gains tax legislation and also in the Corporations Act 2001. We draw your attention to these requirements as it is your obligation to retain the required records for the length of time prescribed by the legislation which is relevant to you and/or your business entity.


Any advice provided is only an opinion based on our knowledge of your particular circumstances.


Where allowed by law digital signatures scanned or faxed signatures may be accepted by our office in substitution for original signatures.

Sharing of Information

SJM Advisors may share information with entities associated with SJM Advisors to assist in providing services to you.

Involvement of Others

Where, as part of our engagement, the services of an external consultant or expert are required, an estimated cost and timeframe and involvement will be provided to you for your approval.

Ownership of Documents 

The final Financial Statements, Income Tax Returns and any other documents which we are specifically engaged to prepare, together with any original documents given to us by you, shall be the property of you. Any other documents brought into existence by us including general journals, working papers, the general ledger, draft financial statements and copies of tax returns, will remain our property at all times.

Lien on Documents 

In relation to any subsequent termination of our services, you are advised that we shall be entitled to retain all documents belonging to you and any related parties we act for until payment is received in full for all outstanding fees.

Period of Engagement

This letter will be effective for future years unless we advise you of any change in our arrangement.

Limitation of Liability

Our liability is limited by a scheme approved under Professional Standards Legislation. Further information on the scheme is available from the Professional Standards Councils’ website: http://www.professionalstandardscouncil.gov.au.


Our fees are computed on the basis of time spent on your affairs by our team members involved, based on the degree of responsibility and skill involved, and will include Goods and Services Tax at the prevailing rate. You will be billed at the completion of the work, or at such other intervals as is appropriate, with payment due within the credit terms as shown on our invoices.