Terms of Engagement

These Terms of Engagement set out the general terms under which KnightLedger provides accountancy, bookkeeping, payroll, taxation, year-end accounts, company secretarial and related professional services.

They are intended to be read together with the individual Engagement Letter, service schedule, proposal or quotation issued to each client.

The precise services to be provided, the responsibilities of KnightLedger and the client, and the applicable fees will be confirmed in the individual engagement documentation.

KnightLedger operates as a professional accountancy practice under the applicable practising arrangements of the Association of International Accountants (AIA).

KnightLedger is committed to conducting its professional activities in accordance with applicable legislation, regulatory requirements, professional standards and the ethical requirements applicable to AIA members in practice.

AIA members are required to comply with the AIA Constitution and its Code of Ethics. The AIA ethical framework incorporates the fundamental principles of:

KnightLedger will seek to apply these principles throughout its professional relationship with clients.

KnightLedger will also comply with applicable accounting, taxation, anti-money laundering, data protection and other legal and regulatory requirements relevant to the services provided.

Before commencing an engagement, KnightLedger will normally provide the client with an Engagement Letter, proposal, quotation or other written agreement.

The Engagement Letter and applicable service schedules form part of the agreement between KnightLedger and the client.

Where there is a conflict between these general Terms of Engagement and a specific provision in an individual Engagement Letter, the specific provision will take precedence for that engagement.

KnightLedger reserves the right to decline an engagement where it considers that:

• • It does not have the necessary competence or resources;
• • The engagement would create an unacceptable conflict of interest;
• • Appropriate client identification cannot be completed;
• • Anti-money laundering requirements cannot be satisfied;
• • The client has not provided sufficient information;
• • The engagement would create unacceptable legal, regulatory or professional risks; or
• • The engagement is otherwise inconsistent with KnightLedger's professional obligations.

Acceptance of an engagement may be subject to satisfactory completion of client identification, verification and other compliance procedures.

Any service not expressly included within the Engagement Letter is outside the scope of the engagement. Additional work may include:

Additional services will normally be subject to a separate quotation or additional fee agreed before work proceeds.

KnightLedger will:

• ✓ Perform the agreed services with reasonable professional care and competence;
• ✓ Maintain appropriate professional standards;
• ✓ Maintain client confidentiality subject to legal and professional obligations;
• ✓ Keep appropriate records of work undertaken;
• ✓ Communicate material matters identified during the engagement;
• ✓ Notify the client where additional information is reasonably required;
• ✓ Keep the client informed of significant matters affecting the engagement where appropriate; and
• ✓ Comply with applicable professional, legal and regulatory requirements.

KnightLedger will exercise professional judgement in carrying out its responsibilities.

The client remains responsible for the underlying business, financial records and decisions of the business.

The client is responsible for:

• • Providing complete, accurate and timely information;
• • Maintaining appropriate accounting records;
• • Providing supporting documentation;
• • Informing KnightLedger of relevant changes in circumstances;
• • Responding promptly to information requests;
• • Reviewing accounts, tax returns, payroll and other documents;
• • Approving documents where approval is required;
• • Meeting payment obligations;
• • Paying taxes and other statutory liabilities when due;
• • Maintaining appropriate internal controls;
• • Protecting access to accounting and business systems; and
• • Ensuring that information provided to KnightLedger is not knowingly false or misleading.

The client remains responsible for retaining appropriate source records and supporting documentation.

Where information is unavailable, incomplete or provided late, KnightLedger may be unable to complete the relevant work within the expected timeframe.

Where KnightLedger prepares accounts or financial statements, these will be prepared based on the information and records provided by the client.

The client remains responsible for:

• • The completeness and accuracy of accounting records;
• • The underlying transactions;
• • The business's accounting policies where applicable;
• • Reviewing the accounts;
• • Providing appropriate explanations and supporting evidence; and
• • Approving the final accounts.

KnightLedger will provide taxation services within the scope agreed with the client.

The client remains responsible for providing complete and accurate information concerning their tax affairs.

The client is responsible for reviewing and approving tax returns before submission where applicable.

The client remains responsible for paying tax, National Insurance, penalties, interest and other liabilities by the relevant deadlines unless KnightLedger has expressly agreed otherwise in writing.

Where payroll services are provided, the client must provide accurate and timely information relating to employees and payroll changes.

KnightLedger cannot accept responsibility for errors arising from incorrect, incomplete or late information supplied by the client.

Where company secretarial services are provided, KnightLedger will perform only the services specifically agreed.

The directors remain responsible for the company's legal and statutory obligations. This includes responsibility for ensuring that:

• • Information supplied to KnightLedger is accurate;
• • Statutory decisions are properly authorised;
• • Company records are maintained appropriately; and
• • Statutory deadlines are met.

KnightLedger does not assume the legal responsibilities of the company's directors or officers.

KnightLedger will make reasonable efforts to assist clients with agreed statutory filing deadlines.

However, deadlines can only be met where KnightLedger receives complete and accurate information and any required approvals sufficiently in advance.

KnightLedger cannot accept responsibility for penalties, interest or other consequences arising from information being provided late or from the client's failure to approve or make payments by the applicable deadline, except where caused by KnightLedger's failure to exercise reasonable professional care.

Unless specifically agreed and permitted under applicable professional and regulatory requirements, KnightLedger will not hold client money.

Where KnightLedger is required to handle client funds, appropriate procedures and safeguards will apply. Any specific arrangements concerning client money will be addressed in the individual Engagement Letter.

KnightLedger is required to comply with applicable anti-money laundering and professional requirements. Before accepting or continuing an engagement, KnightLedger may be required to obtain and verify information including:

KnightLedger may use electronic verification providers and other appropriate third-party systems.

If the required information cannot be obtained or verified, KnightLedger may be unable to commence or continue the engagement.

Where the law prevents KnightLedger from explaining the reason for a particular action, KnightLedger may be unable to provide further information.

KnightLedger aims to provide a high standard of professional service. If a client is dissatisfied, the client should initially raise the matter with KnightLedger so that it can be investigated and, where possible, resolved. Complaints will be handled fairly and objectively.

KnightLedger's internal complaints procedure will normally involve:

1. Acknowledging the complaint;
2. Reviewing the circumstances;
3. Investigating the relevant issues;
4. Discussing the matter with the client where appropriate;
5. Providing a formal response; and
6. Taking appropriate action where required.