Independence Policy

 The Managing Partner of the Accounting Practice | Firm understands the need to keep independent and in finding and reducing the risk of conflicts of interest. 

The Practice | Firm knows that sometimes conflicts of interest can happen, especially when personal and/or business relationships change. When this happens, the Practice | Firm knows that it will have to review if it can still provide services to either or both parties that used to be clients of the Practice | Firm. 

Any existing or possible conflicts of interest must be recognised, evaluated, recorded and reported. Possible conflicts of interest can be managed but must be communicated to the client(s) and their consent to proceed with the engagement should be secured in writing. 

The Managing Partner is responsible for identifying situations that may compromise independence, such as: 

a. Receipt of a gift or benefit of any kind or an offer to buy goods (or use services) from a client at a discount. 

b. Social contact or friendship with a client. 

c. A change in relationships from business to family due to marriage. 

d. The commencement of a business relationship with a client through investment in client entities or being involved in loans to / from clients. 

e. Fee reliance such that more than 15 per cent of the Practice | Firm’s income comes from a single client. 

f. Provision of other accounting services when an audit service is requested for the same client. 

Where threats to independence involve activities undertaken for an Australian government agency, the Managing Partner must disclose the details of any material conflict of interest (real or apparent) to the government agency as soon as they become aware of the conflict. 

The details to disclose to the government agency may include, but are not limited to the following: 

a. The nature of the conflict. 

b. The extent of the conflict. 

c. What interest, association or incentive gives rise to the conflict. 

d. The identity of the registered tax practitioners or others (e.g. team member, associate, contractor or other relevant entity of the Practice | Firm) related to the conflict and the extent to which they have been involved in the services provided to the government agency. 

e. When the conflict was first identified. 

f. How the advice or services provided to the government agency might have been different had there not been a conflict of interest. 

g. Any benefit, financial or otherwise, obtained due to the conflict of interest. 

h. Whether any actions have been taken or are proposed to avoid the conflict or to mitigate any damage arising from the conflict. 

The Managing Partner must notify the quality management leader of the threat and action taken. 

3.1.1 Independence on Engagements 

Where the engagement for an Australian government agency is performed by team members who are registered tax or BAS agents. The Managing Partner is responsible for the disclosure (including making a disclosure on behalf of the team members who are registered tax or BAS agents) of the material conflict of interest to the government agency. 

In addition to the above stated policy, the Practice | Firm uses an Independence Checklist framework in its Quality Management System to guide and assist its approach to considering any potential independence issues that may arise from time to time. 

All staff are required to complete and sign this Declaration on an annual basis.