Dear Client,

You will benefit from our Comprehensive Service package for a monthly investment of just: R2,276 plus VAT.

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that you have requested Surplus Profit (Pty) Ltd (hereafter referred to as “Surplus Profit”) to provide to DEMO ENTITY (hereafter referred to as “the Client”).

You have approved the provision of the non-audit services listed in the scope of work below, under the terms and conditions of this engagement letter. Where specific work is undertaken under this letter, the nature and result of the service will be recorded in the final deliverable arising from such work.

Scope of work

We will perform the following services:
OUTSOURCE BOOKKEEPING

eFiling mandate

eFiling is an electronic tax return and submission service provided by SARS that removes certain of the risks and inefficiencies of manual tax returns. Surplus Profit has made the necessary investment to ensure its systems have the required infrastructure and technology to be able to take advantage of eFiling facilities.

This engagement letter when signed gives Surplus Profit authorisation to utilise the eFiling service on your behalf. It further assumes that you have familiarized yourself with the terms and conditions of SARS eFiling, available on their website at www.sars.gov.za, and have accepted such terms and conditions.

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions

If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Entry Service for a monthly investment of just: R0 plus VAT.

Dear Client

PARTIES
The Parties to the Agreement are:

1. Surplus Profit
2. DEMO ENTITY (the “client”)

INTRODUCTION

• The client wishes to make use of the services of Surplus Profit in order to ensure compliance with all relevant regulations and statutory requirements governing the client’s business.
• Surplus Profit is willing to provide such services on certain terms and conditions and therefore the parties agree as follows:

APPOINTMENT

The client hereby appoints Surplus Profit who hereby accepts such an appointment to provide the services set out below for the duration of this agreement.

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services, and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation, and other information requested in connection with our engagement.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions

If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

FINLEYS OUTSOURCED BUSINESS SERVICES PROPRIETARY LIMITED

Registration no.2010/023622/07

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Comprehensive Service package for a monthly or per interval investment of: R3,101 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that you have requested Surplus Profit (Pty) Ltd (hereafter referred to as “Surplus Profit”) to provide to DEMO ENTITY (hereafter referred to as “the Client”).

You have approved the provision of the non-audit services listed in the scope of work below, under the terms and conditions of this engagement letter. Where specific work is undertaken under this letter, the nature and result of the service will be recorded in the final deliverable arising from such work.

Scope of work

We will perform the following services:
PERFORMING CONTROL PROCEDURES ON YOUR BEHALF

eFiling mandate

eFiling is an electronic tax return and submission service provided by SARS that removes certain of the risks and inefficiencies of manual tax returns. Surplus Profit has made the necessary investment to ensure its systems have the required infrastructure and technology to be able to take advantage of eFiling facilities.

This engagement letter when signed gives Surplus Profit authorisation to utilise the eFiling service on your behalf. It further assumes that you have familiarized yourself with the terms and conditions of SARS eFiling, available on their website at www.sars.gov.za, and have accepted such terms and conditions.

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions
If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Comprehensive Service for an annual investment of just: R24,750 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that you have requested Surplus Profit (Pty) Ltd (hereafter referred to as “Surplus Profit”) to provide to DEMO ENTITY (hereafter referred to as “the Client”).

You have approved the provision of the non-audit services listed in the scope of work below, under the terms and conditions of this engagement letter. Where specific work is undertaken under this letter, the nature and result of the service will be recorded in the final deliverable arising from such work.

Scope of work

We will perform the following services:
ASSISTANCE TO CONVERT CURRENT ACCOUNTING SYSTEM TO CLOUD ACCOUNTING SYSTEM

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation, and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with you as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:
Terms and conditions
If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Value Service for a monthly investment of just: R662 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that you have requested Surplus Profit (Pty) Ltd (hereafter referred to as “Surplus Profit”) to provide to DEMO ENTITY (hereafter referred to as “the Client”).

You have approved the provision of the non-audit services listed in the scope of work below, under the terms and conditions of this engagement letter. Where specific work is undertaken under this letter, the nature and result of the service will be recorded in the final deliverable arising from such work.

Scope of work

We will perform the following services:
OUTSOURCE PAYROLL

eFiling mandate

eFiling is an electronic tax return and submission service provided by SARS that removes certain of the risks and inefficiencies of manual tax returns. Surplus Profit has made the necessary investment to ensure its systems have the required infrastructure and technology to be able to take advantage of eFiling facilities.

This engagement letter when signed gives Surplus Profit authorisation to utilise the eFiling service on your behalf. It further assumes that you have familiarized yourself with the terms and conditions of SARS eFiling, available on their website at www.sars.gov.za, and have accepted such terms and conditions.

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions
If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Value Service for an annual investment of just: R5,965 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that you have requested Surplus Profit (Pty) Ltd (hereafter referred to as “Surplus Profit”) to provide to DEMO ENTITY (hereafter referred to as “the Client”).

You have approved the provision of the non-audit services listed in the scope of work below, under the terms and conditions of this engagement letter. Where specific work is undertaken under this letter, the nature and result of the service will be recorded in the final deliverable arising from such work.

Scope of work

We will perform the following services:
ASSISTANCE TO SUBMIT YOUR EMP501 EMPLOYEE TAX RECONCILIATION TO SARS

eFiling mandate

eFiling is an electronic tax return and submission service provided by SARS that removes certain of the risks and inefficiencies of manual tax returns. Surplus Profit has made the necessary investment to ensure its systems have the required infrastructure and technology to be able to take advantage of eFiling facilities.

This engagement letter when signed gives Surplus Profit authorisation to utilise the eFiling service on your behalf. It further assumes that you have familiarized yourself with the terms and conditions of SARS eFiling, available on their website at www.sars.gov.za, and have accepted such terms and conditions.

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions
If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Value Service for an annual investment of just: R9,695 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that you have requested Surplus Profit (Pty) Ltd (hereafter referred to as “Surplus Profit”) to provide to DEMO ENTITY (hereafter referred to as “the Client”).

Scope of work

We will perform the following services:

COMPILE ANNUAL FINANCIAL STATEMENTS

On the basis of information that you will provide, we will assist you in the preparation and presentation of the financial statements for the Client consisting of the statement of financial position as at the date set out in the scoping section of this document, and the statement of comprehensive income, statement of changes in equity and statement of cash flow for the year then ended, and the notes, comprising of significant accounting policies and other explanatory information in accordance with the Companies Act of South Africa and accounting framework as set out in the scoping section of this document. (hereafter referred to as the “accounting framework”).

The purpose for which the financial statements will be used is to provide full-year financial information showing the entity’s financial position at the financial reporting date as set out in the scoping section of this document and financial performance for the year then ended. The financial statements will be solely for your use and will not be distributed to other parties.

Our Responsibilities

A compilation engagement involves applying expertise in accounting and financial reporting to assist you in the preparation and presentation of financial information. Since a compilation engagement is not an assurance engagement, we are not required to verify the accuracy or completeness of the information you provide to us for the compilation engagement, or otherwise to gather evidence to express an audit opinion or a review conclusion. Accordingly, we will not express an audit opinion or a review conclusion on whether the financial statements are prepared in accordance with the basis of accounting you have specified, as described above.

We will perform the compilation engagement in accordance with the International Standard on Related Services (ISRS) 4410 (Revised), Compilation Engagements. ISRS 4410 (Revised) requires that, in undertaking this engagement, we comply with relevant ethical requirements, including principles of integrity, objectivity, professional competence and due care. For that purpose, we are required to comply with the International Ethics Standards Board for Professional Accountants’ Code of Ethics for Professional Accountants (IESBA Code)

Your Responsibilities

The compilation engagement to be performed is conducted on the basis that you acknowledge and understand that our role is to assist you in the preparation and presentation of the financial statements in accordance with the financial reporting framework you have adopted for the financial statements. Accordingly, you have the following overall responsibilities that are fundamental to our undertaking the compilation engagement in accordance with ISRS 4410 (Revised):

(a) Responsibility for the financial statements and the preparation and presentation thereof in accordance with a financial reporting framework that is acceptable in view of the intended use of the financial statements and the intended users.

(b) Responsibility for the accuracy and completeness of the records, documents, explanations and other information you provide to us for the purpose of compiling the financial statements.

(c) Responsibility for the judgments needed in the preparation and presentation of the financial statements, including those for which we may provide assistance in the course of the compilation engagement.

Our Compilation Report

As part of our engagement, we will issue our report attached to the financial statements compiled by us, which will describe the financial statements and the work we performed for this compilation engagement. The report will also note that the use of the financial statements is restricted to the purpose set out in this engagement letter, and that use and distribution of our report provided for the compilation engagement is restricted to you, as the management of the Client.

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions

If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Comprehensive Service for an annual investment of just: R13,104 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that you have requested Surplus Profit (Pty) Ltd (hereafter referred to as “[siteneme]”) to provide to DEMO ENTITY (hereafter referred to as “the Client”).

You have approved the provision of the non-audit services listed in the scope of work below, under the terms and conditions of this engagement letter. Where specific work is undertaken under this letter, the nature and result of the service will be recorded in the final deliverable arising from such work.

Scope of work

We will perform the following services:
ASSISTANCE WITH ANNUAL TAX RETURNS AND COMPLIANCE

We will assist in the preparation and review of the income tax returns and supporting schedules that give rise to the disclosures made on the face of the tax returns. In this process, we value regular contact and working with you as this facilitates close relationships and good communication. You will receive written correspondence from our offices detailing our requests for information. It is your responsibility to ensure that our tax division is furnished with all the necessary information within the time-frames stipulated in our written correspondence to you. In this respect, it is important to bear in mind that the South African Income Tax Act imposes penalties and interest should you submit your income tax return late. Unfortunately, we cannot be held responsible for penalties and interest imposed on the late rendition of an income tax return where our tax division has not received all the information within the stipulated time-frames.

You are responsible for the proper recording of transactions in the books of account, for furnishing complete and accurate information and for a careful review of the tax return prior to its submission to the SARS. As part of our service to you, we will discuss tax positions that may significantly increase the risk of exposure to penalties before finalising your tax return.

However, in these circumstances, it is our practice to engage with our team of tax consultant specialists. Please note that their fees are charged separately and will be agreed upon with you prior to them commencing work. All work performed and opinions given by them will be subject to their terms and conditions of engagement.

All income tax returns and provisional tax returns are subject to examination by the SARS. In the course of such examination, the taxpayer may be requested to produce documents, records and/or other evidence to substantiate, for example, the items of income and expenditure disclosed in the income tax return. Please note that fees for lodging objections of a technical nature are charged separately and will be agreed upon with you prior to us commencing work on the objection to be lodged.

Importantly, it is your responsibility to inform us of any changes in your personal particulars, including contact telephone numbers, change of address etc.

Termination of services

Should you no longer require us to assist you in the handling of your tax compliance matters, kindly notify us in writing. This is necessary due to the strict time-frames and resultant obligations imposed on us by SARS.

eFiling mandate

eFiling is an electronic tax return and submission service provided by SARS that removes certain of the risks and inefficiencies of manual tax returns. Surplus Profit has made the necessary investment to ensure its systems have the required infrastructure and technology to be able to take advantage of eFiling facilities.

This engagement letter when signed gives Surplus Profit authorisation to utilise the eFiling service on your behalf. It further assumes that you have familiarized yourself with the terms and conditions of SARS eFiling, available on their website at www.sars.gov.za, and have accepted such terms and conditions.

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:
Terms and conditions
If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our ADR Process for an annual investment of just: R4,121 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that you have requested Surplus Profit (Pty) Ltd (hereafter referred to as “[siteneme]”) to provide to DEMO ENTITY (hereafter referred to as “the Client”).

You have approved the provision of the non-audit services listed in the scope of work below, under the terms and conditions of this engagement letter. Where specific work is undertaken under this letter, the nature and result of the service will be recorded in the final deliverable arising from such work.

Scope of work

We will perform the following services:
ASSISTANCE WITH SARS QUERY

eFiling mandate

eFiling is an electronic tax return and submission service provided by SARS that removes certain of the risks and inefficiencies of manual tax returns. Surplus Profit has made the necessary investment to ensure its systems have the required infrastructure and technology to be able to take advantage of eFiling facilities.

This engagement letter when signed gives Surplus Profit authorisation to utilise the eFiling service on your behalf. It further assumes that you have familiarized yourself with the terms and conditions of SARS eFiling, available on their website at www.sars.gov.za, and have accepted such terms and conditions.

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions
If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Value Service for an annual investment of just: R17,071 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

You have requested that Surplus Profit (Pty) Ltd (hereafter referred to as “Surplus Profit”) review the financial statements of DEMO ENTITY (hereafter referred to as “the Client”), which comprise the statement of financial position as at the year-end set out in the scoping section below, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year, then ended, and the notes to the financial statements including a summary of significant accounting policies and other explanatory information. We are pleased to confirm our acceptance and our understanding of this independent review engagement by means of this letter.

Scope of work

We will perform the following services:
EXPRESS AN INDEPENDENT REVIEW OPINION ON YOUR FINANCIAL STATEMENT INFORMATION

Responsibilities of the Independent Reviewers

We will conduct our review in accordance with the International Standard on Review Engagements (ISRE) 2400 (Revised) ‘Engagements to Review Financial Statements’. ISRE 2400 (Revised) requires us to conclude whether anything has come to the attention that causes us to believe that the financial statements, taken as a whole, are not prepared in all material respects in accordance with the accounting framework and the requirements of the Companies Act in South Africa ISRE 2400 (Revised) also requires us to comply with relevant ethical requirements.

A review of financial statements in accordance with ISRE 2400 (Revised) consists primarily of making enquiries of management and others within the entity involved in financial and accounting matters, applying analytical procedures and evaluating the sufficiency and appropriateness of the review evidence obtained. A review also requires the performance of additional procedures when the practitioner becomes aware of matters that may the practitioner to believe the financial statements as a whole may be materially misstated. These procedures are performed to enable us to express our conclusion on the financial statements in accordance with ISRE 2400 (Revised). The procedures selected will depend on what we consider necessary applying our professional judgment, based on our understanding of your business and its environment, and our understanding of the applicable financial reporting framework and its application in the industry context.

As we are engaged to review the financial statements and a review is not an audit of financial statements:

• There is a commensurate higher risk that any material misstatements that exist in the financial statements reviewed may not be revealed by the review, even though the review is properly performed in accordance with ISRE 2400 (Revised);
• In expressing our conclusion from the independent review of the financial statements, our report on the financial statements will state that an audit has not been performed and will expressly disclaim any audit opinion on the financial statements.

The nature and extent of our procedures will vary according to our assessment of the company’s accounting system and, where we wish to place reliance on it, the internal financial control system.

Responsibilities of the directors

The directors are responsible for the calculation of the public interest score in accordance with Regulation 26 of the Companies Regulations, 2011. The company’s public interest score should be calculated by the directors at year-end for the current financial year. It is the sole responsibility of the directors to determine the appropriateness of a review engagement in the circumstances of the company, in compliance with the requirements of the Companies Act, and taking cognisance of any other requirements or agreements that may be applicable to the company.

Our independent review will be conducted on the basis that you acknowledge and understand that you have the responsibility:

• For the preparation and fair presentation of the financial statements in accordance with the accounting framework and the requirements of the Companies Act;
• For such internal controls as you determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; and
• To provide us with access to all information of which you are aware that is relevant to the preparation of the financial statements, such as records, documentation and other matters, additional information that we may request from you for the purpose of the review, and unrestricted access to persons within the entity from whom we determine it necessary to obtain evidence.

As part of our review, we will request from management, and where appropriate, from those charged with governance, written confirmation concerning representations made to us in connection with the independent review.

Reportable irregularities in terms of Regulation 29 of the Companies Regulations, 2011

It is our responsibility to inform you regarding our obligation, in terms of Regulation 29 of the Companies Regulations, 2011, to report reportable irregularities to the Companies and Intellectual Property Commission (‘the Commission’). A “reportable irregularity” refers to any act or omission committed by any person responsible for the management of a company, which: 

• Unlawfully has caused or is likely to cause material financial loss to the company or to any member, shareholder, creditor or investor of the company in respect of his, her or its dealings with that entity; or
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. However, we will communicate to you in writing concerning any significant deficiencies in internal control relevant to the audit of the financial statements that we have identified during the audit.
• Is fraudulent or amounts to theft; or
• Causes or has caused the company to trade under insolvent circumstances.

We are not required to design procedures for the specific purpose of identifying reportable irregularities. However, we will consider all information that comes to our attention from any source in order to determine whether a reporting obligation arises. In instances where we are satisfied or have reason to believe that a reportable irregularity has taken place or is taking place, the practitioner responsible and accountable for the review engagement is required, without delay, to send a written report to the Commission. Such a report initiates a series of activities in accordance with Regulation 29 of the Companies Regulations, 2011, pertaining to discussing the report with the members of the Board of the company, obtaining representations from the Board and sending a final report to the Commission concluding on the existence and status of a reportable irregularity, including information relating to steps that have been taken for the prevention or recovery of any loss as a result thereof (if relevant).

Please do not hesitate to contact us if you require further clarification regarding our obligation to report reportable irregularities to the Commission.

Reporting

As stated above, our review will be conducted with the objective of expressing a conclusion on the financial statements as a whole. Our review conclusion will be communicated in a written report. If the review conclusion on the financial statements of the company is unmodified, it is currently expected to read as follows:

“Based on our review, nothing has come to the attention that causes us to believe that the financial statements do not present fairly, in all material aspects, the financial position of the company at the reporting date, and its financial performance and its cash flows for the year then ended, in accordance with the accounting framework and the requirements of the Companies Act of South Africa.”

However, the form and content of our report may need to be amended in the light of our findings obtained from the review.

Other reports required by the Companies Act

The Companies Act requires the annual financial statements to include a directors’ report. A complete set of financial statements is identified by the applicable financial reporting framework and does not include the directors’ report. The information contained in the directors’ report is generally not in the form of an assertion and the subject matter is generally not identifiable and open to consistent evaluation or measurement against identified criteria. Consequently, our conclusion expressed on the financial statements does not extend to the information contained in the director’s report. However, an independent reviewer has a responsibility to read the other information contained in the directors’ report to identify material inconsistencies, if any, with the reviewed financial statements. As part of our independent review of the financial statements for the year ended as set out in the scoping section, we will read the directors’ report and in doing so, consider whether the directors’ report is materially inconsistent with the reviewed financial statements, or our knowledge obtained in the independent review, or otherwise appears to be materially misstated. We will include a separate paragraph in our independent review report in this regard.

Management representations

The information used by the directors or senior management in preparing the financial statements will invariably include facts or judgements, which are not themselves recorded in the accounting records. As part of our normal review procedures, we shall request appropriate directors or senior officials to confirm to us in writing each year such facts or judgements and any other oral representations, which we have received from them during the course of the review on matters having a material effect on the financial statements. We will also ask them to confirm in that letter that all-important and relevant information has been brought to our attention.

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Responsibility relating to electronic distribution of Surplus Profit’s conclusion

If the company intends to publish or reproduce, in printed form or electronically, our report together with the financial statements or otherwise make reference to our firm in a document that contains other information, management agrees to (a) provide us with a draft of such document to read, and (b) obtain our approval for inclusion of our report, before the document is finalised and distributed. Where our review report is reproduced in any medium, the complete financial statements, including notes, must also be presented.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions

If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis on which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Comprehensive Service for an annual investment of: R89,663 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

The purpose of this letter is to set out the basis on which Surplus Profit (hereafter referred to as “Surplus Profit”) act as auditors of DEMO ENTITY [and it’s subsidiary/ies] (hereafter referred to as “the Client”) undertakings from time to time and the respective areas of responsibility of the directors and of ourselves.

Scope of audit

EXPRESS AN AUDIT OPINION ON YOUR COMPANY SEPERATE FINANCIAL STATEMENTS

Our audit will be conducted in accordance with International Standards on Auditing and will include such tests of transactions and of the existence, ownership and valuation of assets and liabilities, as we consider necessary. Our audit will include:

• Evaluating the appropriateness of the accounting policies;
• Examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements;
• Assessing the reasonableness of significant estimates; and
• Considering the appropriateness of the overall financial statement presentation.

The nature and extent of our procedures will vary according to our assessment of the company’s accounting system and, where we wish to place reliance on it, the internal financial control system.

Our work will be planned in advance and incorporated into an audit plan. This may be varied on the basis of our findings during the course of an audit and from year to year. Accordingly, we may not necessarily visit the same or every location each year and we may modify our audit scope, rotate our audit emphasis and propose matters of special audit emphasis, as the circumstances dictate.

Because our responsibilities are to report on the financial statements as a whole, rather than those of individual units or divisions, the nature and extent of our tests and enquiries at each unit or division will vary according to our assessment of its circumstances. Thus, we will carry out limited work at certain units or divisions, rather than the full audit that would be necessary if we were to report on the separate financial statements of the unit or division concerned.

In accordance with professional standards, as the primary auditors, we accept full responsibility for our opinion on the group’s financial statements. To fulfil this responsibility, it may be necessary for us to enquire, review or carry out certain procedures on the work performed by the auditors of those group companies where we have not been appointed. However, the responsibility to your company, as a shareholder, for the audits of such subsidiaries remains with the auditors of the subsidiaries concerned.

Responsibilities of the directors

As directors of the Client, you are responsible:

• For the preparation of the financial statements in accordance with the Choose an item. (hereafter referred to as the “accounting framework”) and the requirements of the Companies Act, including where relevant their fair presentation;
• For such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; and
• To provide us with:

a. Access to all information of which management is aware that is relevant to the preparation of the financial statements such as records, documentation and other matters;
b. Additional information that the auditor may request from management for the purpose of the audit; and
c. Unrestricted access to persons within the entity from whom the auditor determines it necessary to obtain audit evidence.

Responsibilities of the auditors

We have a statutory responsibility to report to the shareholders whether in our opinion the financial statements fairly present the financial position, results of operations and cash flow information of the company, in conformity with the accounting framework and the requirements of the Companies Act.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. However, we will communicate to you in writing concerning any significant deficiencies in internal control relevant to the audit of the financial statements that we have identified during the audit.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We also have a professional responsibility to report if the financial statements do not comply in any material respect with applicable accounting standards unless in our opinion the non-compliance is justified in the circumstances. In determining whether or not the departure is justified we consider:

1. Whether the departure is required in order for the financial statements to achieve fair presentation in all material aspects; and
2. Whether adequate disclosure has been made concerning the departure.

Our professional responsibilities also include considering whether other information in documents containing audited financial statements is consistent with those financial statements. However, we do not express an opinion on such other information.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detection of fraud, error and non-compliance with laws or regulations rests with yourselves. Management is also responsible for identifying and ensuring that the company complies with the laws and regulations applicable to its operations.

Our audit is planned and performed so that we have a reasonable, but not absolute, assurance of detecting material misstatements in the financial statements or accounting records, including any material misstatements resulting from fraud, error or non-compliance with laws or regulations. Our audit will not include a detailed audit of transactions, such as would be necessary to disclose errors or fraud, should they exist, which may cause a material misstatement of the financial statements. It is important to recognise that there are inherent limitations in an audit. For example, we do not examine the evidence supporting every transaction, and although we obtain an understanding of the accounting systems and related controls to assist us in designing our audit, we study and evaluate only those controls on which we intend to rely.

Thus, irregularities, if they exist, may not be detected if there is deliberate concealment and forgery to prevent their detection. However, we will communicate to you any illegal act, material errors, or evidence that fraud may exist identified during our audit.

Reportable irregularity

We are required by the Auditing Professions Act,26 of 2005 (the “APA”) to send a written report to the Independent Regulatory Body for Auditors (“IRBA”) if we are satisfied or have reason to believe that a reportable irregularity (as defined by the APA) has taken or is taking place. We undertake to notify the board of directors of such action within three days of sending a report to the IRBA. We will subsequently take all reasonable steps to discuss the report with the board of directors who will be afforded the opportunity to make representations in respect thereof. We are also required to send a report to the IRBA within thirty days from the date on which the initial report was sent, which should contain a statement that we are of the opinion that i) no reportable irregularity has taken place or is taking place; or ii) the suspected reportable irregularity is no longer taking place and that adequate steps have been taken for the prevention or recovery of any loss as a result thereof, if relevant; or iii) the reportable irregularity is continuing. If the IRBA receives a report that a reportable irregularity is continuing, they must notify any appropriate regulator of the details of the reportable irregularity to which the report relates and provide it with a copy of the report.

Section 45 of the Auditing Professions Act states the auditor’s responsibility regarding reportable irregularities:

Reportable irregularity definition

Reportable irregularity means any unlawful act or omission committed by any person responsible for the management of an entity, which:

a. has caused or is likely to cause material financial loss to the entity or to any partner, member, shareholder, creditor or investor of the entity in respect of his, her or its dealings with that entity; or
b. is fraudulent or amounts to theft; or
c. represents a material breach of any fiduciary duty owed by such person to the entity or any partner, member, shareholder, creditor or investor of the entity under any law applying to the entity or the conduct or management thereof.

Auditors’ responsibility

• An individual registered auditor of an entity that is satisfied or has reason to believe that a reportable irregularity has taken place or is taking place in respect of that entity must, without delay, send a written report to the Regulatory Board.
• The report must give particulars of the reportable irregularity and must include such other information and particulars as the registered auditor considers appropriate.
• The registered auditor must within 3 days of sending the report to the Regulatory Board notify the members of the management board of the entity in writing of the sending of the report. A copy of the report to the Regulatory Board must accompany the notice.
• The registered auditor must as soon as reasonably possible but no later than 30 days from the date on which the report was sent to the Regulatory Board –
1. Take all reasonable measures to discuss the report with the members of the management board of the entity;
2. Afford the members of the management board of the entity an opportunity to make representations in respect of the report; and
3. Send another report to the Regulatory Board, which report must include:

A statement that the registered auditor is of the opinion that:

1. no reportable irregularity has taken place or is taking place; or
2. the suspected reportable irregularity is no longer taking place and that adequate steps have been taken for the prevention or recovery of any loss as a result thereof, if relevant; or
3. the reportable irregularity is continuing; and ii. detailed particulars and information supporting the statement referred to in (i) above.
• The Regulatory Board must as soon as possible after receipt of a report containing a statement referred to in (c)(i)(3) of subsection (d), notify any appropriate regulator in writing of the details of the reportable irregularity to which the report related and provide it with a copy of the report.
• For the purposes of the reports referred to above, a registered auditor may carry out such investigations as the registered auditor may consider necessary and, in performing any duty referred to in the preceding provisions of this section the registered auditor must have regard to all the information which comes to the knowledge of the registered auditor from any source.

Impact of reportable irregularities on the audit opinion

If a reportable irregularity was reported to the IRBA, the audit report must refer to the fact that the matter was reported and details of the report should be given in either the audit report or the directors’ report.  In cases where a reportable irregularity was reported and a follow-up report was done indicating that the auditor has become satisfied that no reportable irregularity has taken place or is taking place, no modification to the audit report will be necessary.

Reports to management

An audit is not necessarily designed to identify significant weaknesses in the company’s system of internal financial controls. However, we shall report to management in writing following each audit visit those significant weaknesses in the group’s systems or other business matters which come to our notice during the course of our normal audit work and which, in our view, require management’s attention.  Our review of internal financial control systems is only performed to the extent required to express an opinion on the company’s financial statements and therefore our comments on these systems will not necessarily address all possible improvements, which might be suggested as a result of a more extensive special examination.  

No such report may be provided to a third party without our prior written consent. Such consent will be granted only on the basis that such reports are not prepared with the interests of anyone other than the company in mind and that we accept no duty or responsibility to any other party.  We will have regular meetings with your business unit financial managers and your corporate financial managers on an ongoing basis and in respect of particular situations as they arise.  We will also prepare a report for management on the scope of our audit for the year in question, the results of our examination and any accounting issues raised, comments on accounting procedures and controls, taxation and general business matters and confirmation of fees.  The form and content of our report may need to be amended in light of our audit findings.

Management representations

The information used by the directors or senior management in preparing the financial statements will invariably include facts or judgements, which are not themselves recorded in the accounting records. As part of our normal audit procedures, we shall request appropriate directors or senior officials to confirm to us in writing each year such facts or judgements and any other oral representations, which we have received from them during the course of the audit on matters having a material effect on the financial statements. We will also ask them to confirm in that letter that all-important and relevant information has been brought to our attention.

Other requirements

In order to assist us with the examination of your financial statements, we shall request early sight of all documents or statements including the Directors’ report, which are to be issued with the financial statements. Once we have issued our report, we have no further direct responsibility in relation to the financial statements for that financial year. However, we expect that you will inform us of any material event occurring between the date of our report and the date of issue of the financial statements, which may affect the financial statements.

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions

If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Comprehensive Service for an annual investment of just: R39,109 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

The purpose of this letter is to set out the basis on which Surplus Profit (hereafter referred to as “Surplus Profit”) act as auditors of DEMO ENTITY [and it’s subsidiary/ies] (hereafter referred to as “the Client”) undertakings from time to time and the respective areas of responsibility of the directors and of ourselves.

Scope of audit

You have requested that we undertake:

• a reasonable assurance engagement on whether the legal practitioners’ trust accounts of DEMO ENTITY were maintained, in all material respects, in compliance with Section 86, read with Section 63(1)(g), and Sections 87(1), 87(3) and 87(4) of the Legal Practice Act, No. 28 of 2014 (‘the Act”), and the South African Legal Practice Council Rules (the Rules), made under the authority of Sections 95(1), 95(3) and 109(2) of the Act, for the year ended as per the scoping section below;
• We clarify that we are not required to perform any procedures on records or documents relating to accounting for deceased and insolvent estates and trusts other than those dealt with via the legal practitioner’s trust banking account(s);
• In terms of Rule 54.24, to agree the information extracted from the accounting records and included in the Legal Practitioner’s Annual Statement on Trust Accounts for the year ended as per the scoping section below to the underlying records that were the subject of our engagement on whether the legal practitioners’ trust accounts were maintained in compliance with the Act and the Rules that will accompany our assurance report to be submitted to the Legal Practice Council and report thereon;
• In terms of Rule 54.24, to also read your representations, the disclosure and other information in your Legal Practitioner’s Annual Statement on Trust Accounts for the purpose of identifying any information that is inconsistent, based on our knowledge obtained in our engagement on the compliance of you legal practitioners’ trust accounts with the Act and the Rules and report thereon; and
• Further, in terms of Rule 54.24.3 to report on whether or not, to the best of our knowledge, you have for the year ended as per the scoping section below carried on the business of investment practice and complied with the related investment practice Rules, as required.

Legal practitioner’s responsibility for the trust accounts

You are responsible for ensuring that your trust accounts are maintained in compliance with the Act and the Rules, and for such internal control as you determine is necessary to maintain the integrity of those trust accounts in accordance with the relevant client mandates, including such controls as you determine is necessary to prevent and detect fraud and theft. You are also responsible for preparing the Legal Practitioner’s Annual Statement on Trust Accounts and for the financial information and declarations contained therein and to provide us with:

• Access to all information that the legal practitioner is aware of that is relevant to our engagement, including such business account records, as we consider necessary;
• Additional information that we may request from the practitioner for the purpose of our engagement; and
• Unrestricted access to persons within the practice from whom we determine it necessary to obtain audit evidence.

You are responsible for ensuring that the practise complies with relevant legislation.

As part of our engagement, we will request from you written confirmation concerning representations made to us in connection with our engagement. We will also ask you to confirm in that letter that all-important and relevant information has been brought to our attention.

Auditor’s independence and quality control

We are required to comply with the independence and other ethical requirements of Sections 290 and 291 of the Independent Regulatory Board for Auditors’ Code of Professional Conduct for Registered Auditors (Revised January 2018) and Parts 1 and 3 of the Independent Regulatory Board for Auditors’ Code of Professional Conduct for Registered Auditors (Revised November 2018) (together with the IRBA Codes), which are founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The IRBA Codes are consistent with the corresponding sections of the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) respectively.

Surplus Profit applies the International Standard on Quality Control 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements and Other Assurance and Related Services Engagements and accordingly maintains a comprehensive system of quality control, including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Auditor’s responsibility

Our responsibility is to express a reasonable assurance opinion on whether your legal practitioners’ trust accounts were maintained in compliance with the Act and the Rules, based on our assurance procedures performed; and to report, as required, on the Legal Practitioner’s Annual Statement on Trust Accounts.

We will conduct our engagement in accordance with the International Standard on Assurance Engagements (ISAE 3000 (Revised)), Assurance Engagements Other than Audits or Reviews of Historical Financial Information. That standard requires that we plan and perform the engagement to obtain reasonable assurance about whether your legal practitioners’ trust accounts were maintained, in all material respects, in compliance with the Act and the Rules, based on our assurance procedures to be performed; and to report, as required, on your Legal Practitioner’s Annual Statement on Trust Accounts

A reasonable assurance engagement in accordance with ISAE 3000 (Revised) involves performing procedures to obtain evidence about whether the legal practitioners’ trust accounts were maintained in compliance with the Act and the Rules. The nature, timing and extent of the procedures selected depend on our professional judgement, including the assessment of the risks of non-compliance with the Act and Rules, whether due to fraud, theft and error. In making those risk assessments, we will consider internal control that is relevant to the engagement in order to design procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control. Our engagement will include the following procedures:

• Considering, and applying when applicable in the engagement circumstances, the guidance in the Proposed Guide for Registered Auditors: Engagements on Legal Practitioners’ Trust Accounts (Revised November 2019) issued by the IRBA.
• Making inquiries of the legal practitioner and persons within the practice.
• Testing of transactions for all significant activities with the objective of evaluating whether:

a. Transactions were appropriately identified as trust transactions;

b. Trust transactions were in accordance with mandates and supported by adequate documentation and narrative to identify from whom funds were received, and for whose credit; and

c. Deposits and withdrawals from the trust bank account were to, or for, a trusted creditor; and

d. Transfers to the attorney’s business account were only in respect of money claimed to be due to the legal practitioner; and

e. Testing and/or scrutinising bank reconciliations, as we consider appropriate in the engagement circumstances, and evaluating the records made available to us against the external confirmations requested from financial institutions.

Reasonable assurance is a high level of assurance but is not a guarantee that an assurance engagement conducted in accordance with ISAE 3000 (Revised) will always detect a material misstatement when it exists. Misstatements can arise from actions or omissions to act due to fraud, theft or error and are considered material if they, individually or in aggregate, could reasonably be expected to influence relevant decisions of users taken on the basis of the subject matter information.

Due to the inherent limitations of an assurance engagement together with the inherent limitations of internal control, there is an unavoidable risk that some material misstatements may not be detected, even though the engagement is properly planned and performed in accordance with ISAE 3000 (Revised).

We shall not be responsible for reporting on any relevant events or transactions beyond the period covered by our reasonable assurance engagement. As part of an assurance engagement in accordance with ISAE 3000 (Revised), we exercise professional judgement and maintain professional scepticism throughout the engagement.

Our report on the Compliance of the Legal Practitioner’s Trust Accounts with the Act and the Rules

We expect to issue a report containing an opinion that the legal practitioners’ trust accounts of DEMO ENTITY for the period/year ended as per the scoping section below were maintained, in all material respects, in compliance with the Act and the Rules. However, should our evidence obtained not support that opinion, we are obliged by ISAE 3000 (Revised) to modify our opinion, listing exceptions and instances of non-compliance identified, or giving an explanation for reporting non-compliance.

Report on Other Legal and Regulatory Requirements

Report on the Legal Practitioners’ Annual Statement on Trust Accounts

In terms of Rule 54.24, we expect to report that we have agreed on the information included in the attached Legal Practitioners’ Annual Statement on Trust Accounts for the year ended as per the scoping section below to the underlying records that were the subject of our engagement on whether the legal practitioners’ trust accounts were maintained in compliance with the Act and the Rules.

We also expect to report that based on our reading of the legal practitioner’s representations, the disclosures and other information contained in the Legal Practitioner’s Annual Statement on Trust Accounts, we have not identified any information that is inconsistent with our knowledge obtained in the course of our engagement. We will state in our report that our opinion on the legal practitioner’s trust accounts does not cover the Legal Practitioner’s Annual Statement on Trust Accounts and we do not express an opinion thereon.

However, should our evidence obtained not support a positive report, our report will be amended accordingly.

Should we not be able to report as expected, we will discuss matters with you before finalising our report.

Our report on the Legal Practitioners’ Investment Practice

In terms of Rule 54.24.3, we expect to report on whether or not, to the best of our knowledge, you have for the year ended as per the scoping section below, carried on a business of investment practice and complied with the related investment practice Rules.

Reportable irregularity

Please note that this assurance engagement meets the definition of audit, as contained in the Auditing Profession Act, 2005 (APA). We are subject to the requirements of Section 45 of the APA, and have a duty to report to the IRBA on reportable irregularities, as defined in the APA, that may be identified in the course of our engagement.

Where a reportable irregularity has been reported to the IRBA, we are required to include a paragraph on “Report on Other Legal and Regulatory Requirements” in our report, disclosing information relating to the reportable irregularity.

Non-compliance with Laws and Regulations

We wish to draw your attention to the professional obligation of the partners and employees of the audit firm to respond to identified or suspected Non-compliance with Laws and Regulations, as required in terms of Section 360 of the IRBA Code; and this may include the reporting of the non-compliance or suspected non-compliance to an appropriate authority under the appropriate circumstances.

Restriction on use and distribution of our report

Our report will state that it is provided for the purpose indicated in the report, and it is not suitable for any other purpose; and that it is intended solely for your use, that of the Legal Practice Council and the Legal Practitioners Fidelity Fund; and should not be distributed to other parties.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions

If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Comprehensive Service for an annual investment of just: R65,504 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

The purpose of this letter is to set out the basis on which Surplus Profit (hereafter referred to as “Surplus Profit”) act as auditors of DEMO ENTITY [and it’s subsidiary/ies] (hereafter referred to as “the Client”) undertakings from time to time and the respective areas of responsibility of the directors and of ourselves.

Scope of audit

EXPRESS AN AUDIT/REVIEW OPINION ON YOUR GROUP FINANCIAL STATEMENTS

Our audit will be conducted in accordance with International Standards on Auditing and will include such tests of transactions and of the existence, ownership and valuation of assets and liabilities, as we consider necessary. Our audit will include:

• Evaluating the appropriateness of the accounting policies;
• Examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements;
• Assessing the reasonableness of significant estimates; and
• Considering the appropriateness of the overall financial statement presentation.

The nature and extent of our procedures will vary according to our assessment of the company’s accounting system and, where we wish to place reliance on it, the internal financial control system.

Our work will be planned in advance and incorporated into an audit plan. This may be varied on the basis of our findings during the course of an audit and from year to year. Accordingly, we may not necessarily visit the same or every location each year and we may modify our audit scope, rotate our audit emphasis and propose matters of special audit emphasis, as the circumstances dictate.

Because our responsibilities are to report on the financial statements as a whole, rather than those of individual units or divisions, the nature and extent of our tests and enquiries at each unit or division will vary according to our assessment of its circumstances. Thus, we will carry out limited work at certain units or divisions, rather than the full audit that would be necessary if we were to report on the separate financial statements of the unit or division concerned.

In accordance with professional standards, as the primary auditors, we accept full responsibility for our opinion on the group’s financial statements. To fulfil this responsibility, it may be necessary for us to enquire, review or carry out certain procedures on the work performed by the auditors of those group companies where we have not been appointed. However, the responsibility to your company, as a shareholder, for the audits of such subsidiaries remains with the auditors of the subsidiaries concerned.

Responsibilities of the directors
As directors of the Client, you are responsible:

• For the preparation of the financial statements in accordance with the Choose an item. (hereafter referred to as the “accounting framework”) and the requirements of the Companies Act, including where relevant their fair presentation;
• For such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; and
• To provide us with:

a. Access to all information of which management is aware that is relevant to the preparation of the financial statements such as records, documentation and other matters;
b. Additional information that the auditor may request from management for the purpose of the audit; and
c. Unrestricted access to persons within the entity from whom the auditor determines it necessary to obtain audit evidence.

Responsibilities of the auditors

We have a statutory responsibility to report to the shareholders whether in our opinion the financial statements fairly present the financial position, results of operations and cash flow information of the company, in conformity with the accounting framework and the requirements of the Companies Act.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. However, we will communicate to you in writing concerning any significant deficiencies in internal control relevant to the audit of the financial statements that we have identified during the audit.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We also have a professional responsibility to report if the financial statements do not comply in any material respect with applicable accounting standards unless in our opinion the non-compliance is justified in the circumstances. In determining whether or not the departure is justified we consider:

1. Whether the departure is required in order for the financial statements to achieve fair presentation in all material aspects; and
2. Whether adequate disclosure has been made concerning the departure.

Our professional responsibilities also include considering whether other information in documents containing audited financial statements is consistent with those financial statements. However, we do not express an opinion on such other information.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detection of fraud, error and non-compliance with laws or regulations rests with yourselves. Management is also responsible for identifying and ensuring that the company complies with the laws and regulations applicable to its operations.

Our audit is planned and performed so that we have a reasonable, but not absolute, assurance of detecting material misstatements in the financial statements or accounting records, including any material misstatements resulting from fraud, error or non-compliance with laws or regulations. Our audit will not include a detailed audit of transactions, such as would be necessary to disclose errors or fraud, should they exist, which may cause a material misstatement of the financial statements. It is important to recognise that there are inherent limitations in an audit. For example, we do not examine the evidence supporting every transaction, and although we obtain an understanding of the accounting systems and related controls to assist us in designing our audit, we study and evaluate only those controls on which we intend to rely.

Thus, irregularities, if they exist, may not be detected if there is deliberate concealment and forgery to prevent their detection. However, we will communicate to you any illegal act, material errors, or evidence that fraud may exist identified during our audit.

Reportable irregularity

We are required by the Auditing Professions Act,26 of 2005 (the “APA”) to send a written report to the Independent Regulatory Body for Auditors (“IRBA”) if we are satisfied or have reason to believe that a reportable irregularity (as defined by the APA) has taken or is taking place. We undertake to notify the board of directors of such action within three days of sending a report to the IRBA. We will subsequently take all reasonable steps to discuss the report with the board of directors who will be afforded the opportunity to make representations in respect thereof. We are also required to send a report to the IRBA within thirty days from the date on which the initial report was sent, which should contain a statement that we are of the opinion that i) no reportable irregularity has taken place or is taking place; or ii) the suspected reportable irregularity is no longer taking place and that adequate steps have been taken for the prevention or recovery of any loss as a result thereof, if relevant; or iii) the reportable irregularity is continuing. If the IRBA receives a report that a reportable irregularity is continuing, they must notify any appropriate regulator of the details of the reportable irregularity to which the report relates and provide it with a copy of the report.

Section 45 of the Auditing Professions Act states the auditor’s responsibility regarding reportable irregularities:

Reportable irregularity definition

Reportable irregularity means any unlawful act or omission committed by any person responsible for the management of an entity, which:

a. has caused or is likely to cause material financial loss to the entity or to any partner, member, shareholder, creditor or investor of the entity in respect of his, her or its dealings with that entity; or
b. is fraudulent or amounts to theft; or
c. represents a material breach of any fiduciary duty owed by such person to the entity or any partner, member, shareholder, creditor or investor of the entity under any law applying to the entity or the conduct or management thereof.

Auditors’ responsibility

• An individual registered auditor of an entity that is satisfied or has reason to believe that a reportable irregularity has taken place or is taking place in respect of that entity must, without delay, send a written report to the Regulatory Board.
• The report must give particulars of the reportable irregularity and must include such other information and particulars as the registered auditor considers appropriate.
• The registered auditor must within 3 days of sending the report to the Regulatory Board notify the members of the management board of the entity in writing of the sending of the report. A copy of the report to the Regulatory Board must accompany the notice.
• The registered auditor must as soon as reasonably possible but no later than 30 days from the date on which the report was sent to the Regulatory Board –
1. Take all reasonable measures to discuss the report with the members of the management board of the entity;
2. Afford the members of the management board of the entity an opportunity to make representations in respect of the report; and
3. Send another report to the Regulatory Board, which report must include:

A statement that the registered auditor is of the opinion that:

1. no reportable irregularity has taken place or is taking place; or
2. the suspected reportable irregularity is no longer taking place and that adequate steps have been taken for the prevention or recovery of any loss as a result thereof, if relevant; or
3. the reportable irregularity is continuing; and ii. detailed particulars and information supporting the statement referred to in (i) above.
• The Regulatory Board must as soon as possible after receipt of a report containing a statement referred to in (c)(i)(3) of subsection (d), notify any appropriate regulator in writing of the details of the reportable irregularity to which the report related and provide it with a copy of the report.
• For the purposes of the reports referred to above, a registered auditor may carry out such investigations as the registered auditor may consider necessary and, in performing any duty referred to in the preceding provisions of this section the registered auditor must have regard to all the information which comes to the knowledge of the registered auditor from any source.

Impact of reportable irregularities on the audit opinion

If a reportable irregularity was reported to the IRBA, the audit report must refer to the fact that the matter was reported and details of the report should be given in either the audit report or the directors’ report.  In cases where a reportable irregularity was reported and a follow-up report was done indicating that the auditor has become satisfied that no reportable irregularity has taken place or is taking place, no modification to the audit report will be necessary.

Reports to management

An audit is not necessarily designed to identify significant weaknesses in the company’s system of internal financial controls. However, we shall report to management in writing following each audit visit those significant weaknesses in the group’s systems or other business matters which come to our notice during the course of our normal audit work and which, in our view, require management’s attention.  Our review of internal financial control systems is only performed to the extent required to express an opinion on the company’s financial statements and therefore our comments on these systems will not necessarily address all possible improvements, which might be suggested as a result of a more extensive special examination.

No such report may be provided to a third party without our prior written consent. Such consent will be granted only on the basis that such reports are not prepared with the interests of anyone other than the company in mind and that we accept no duty or responsibility to any other party.  We will have regular meetings with your business unit financial managers and your corporate financial managers on an ongoing basis and in respect of particular situations as they arise.  We will also prepare a report for management on the scope of our audit for the year in question, the results of our examination and any accounting issues raised, comments on accounting procedures and controls, taxation and general business matters and confirmation of fees.  The form and content of our report may need to be amended in light of our audit findings.

Management representations

The information used by the directors or senior management in preparing the financial statements will invariably include facts or judgements, which are not themselves recorded in the accounting records. As part of our normal audit procedures, we shall request appropriate directors or senior officials to confirm to us in writing each year such facts or judgements and any other oral representations, which we have received from them during the course of the audit on matters having a material effect on the financial statements. We will also ask them to confirm in that letter that all-important and relevant information has been brought to our attention.

Other requirements

In order to assist us with the examination of your financial statements, we shall request early sight of all documents or statements including the Directors’ report, which are to be issued with the financial statements. Once we have issued our report, we have no further direct responsibility in relation to the financial statements for that financial year. However, we expect that you will inform us of any material event occurring between the date of our report and the date of issue of the financial statements, which may affect the financial statements.

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions

If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Secretarial Service for an once-off investment of just: R1,360 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that you have requested Surplus Profit (Pty) Ltd (hereafter referred to as “Surplus Profit”) to provide to DEMO ENTITY (hereafter referred to as “the Client”).

You have approved the provision of the non-audit services listed in the scope of work below, under the terms and conditions of this engagement letter. Where specific work is undertaken under this letter, the nature and result of the service will be recorded in the final deliverable arising from such work.

Scope of work

We will perform the following services:

ASSISTANCE WITH OTHER ONCE-OFF AND SECRETARIAL SERVICES

We will assist in the preparation and review of the annual Companies and Intellectual Property Commission (CIPC) returns and supporting schedules.

This includes:

• Lodgement of the annual return
• Payment of the prescribed fee
• Completion of the CoR30.2, a new return that needs to be done every year with the annual return
• Saving of the confirmation on your Google Drive

In this process, we value regular contact and working with you as this facilitates close relationships and good communication. You will receive written correspondence from our offices detailing our requests for information. It is your responsibility to ensure that our company secretarial division is furnished with all the necessary information within the time-frames stipulated in our written correspondence to you. In this respect, it is important to bear in mind that the Companies and Close Corporations Act imposes penalties and interest should you submit your income tax return late. Unfortunately, we cannot be held responsible for penalties and interest imposed on the late rendition of an income tax return where our tax division has not received all the information within the stipulated time-frames.

However, in these circumstances, it is our practice to engage with our team of Company and Close Corporations Act consultant specialists. Please note that their fees are charged separately and will be agreed upon with you prior to them commencing work. All work performed and opinions given by them will be subject to their terms and conditions of engagement.

All annual returns are subject to examination by the CIPC. In the course of such examination, the Client may be requested to produce documents, records and/or other evidence to substantiate, for example, the items of income and expenditure disclosed in the CIPC annual return. Please note that fees for lodging objections of a technical nature are charged separately and will be agreed upon with you prior to us commencing work on the objection to be lodged.

Importantly, it is your responsibility to inform us of any changes in your personal particulars, including contact telephone numbers, change of address etc.

eFiling mandate

eFiling is an electronic return and submission service provided by CIPC that removes certain of the risks and inefficiencies of manual annual returns. Surplus Profit has made the necessary investment to ensure its systems have the required infrastructure and technology to be able to take advantage of eFiling facilities.

This engagement letter when signed gives Surplus Profit authorisation to utilise the eFiling service on your behalf. It further assumes that you have familiarized yourself with the terms and conditions of CIPC, available on their website at https://eservices.cipc.co.za/, and have accepted such terms and conditions.

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions
If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Comprehensive Service for an annual investment of just: R6,479 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that you have requested Surplus Profit (Pty) Ltd (hereafter referred to as “Surplus Profit”) to provide to DEMO ENTITY (hereafter referred to as “the Client”).

You have approved the provision of the non-audit services listed in the scope of work below, under the terms and conditions of this engagement letter. Where specific work is undertaken under this letter, the nature and result of the service will be recorded in the final deliverable arising from such work.

Scope of work

We will perform the following services:
ACT AS INDEPENDENT TRUSTEE ON YOUR TRUST

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions
If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Comprehensive Service for an annual investment of just: R14,144 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that we will provide to DEMO ENTITY (hereafter referred to as “the client”). Our engagement will be conducted by the International Standard on Related Services applicable to agreed-upon procedures engagements and we will indicate so in our report.

Scope of work

We will perform the following services:

TO GIVE YOU A FORMAL OPINION ABOUT THE LEGALITY OF A BUSINESS TRANSACTION

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.
Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below.

Terms and conditions

If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Starter Package for a investment of R6,916 plus VAT per meeting. This is a month to month subscription up to the next financial year-end and may be cancelled at any time, by any one of the parties by giving one month notice. 

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that we will provide to DEMO ENTITY (hereafter referred to as “the client”). Our engagement will be conducted by the International Standard on Related Services applicable to agreed-upon procedures engagements and we will indicate so in our report.

Scope of work
We will perform the following services:

BUSINESS ADVISORY SERVICES

Other services
Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information
We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations
The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Management retains the responsibility for making decisions regarding the day-to-day operations and management of the entity. Where advice is offered management retains the right to either accept or reject the advice and can not transfer the responsibility for decision making to Surplus Profit.

Acknowledgement and acceptance
Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below.

Terms and conditions

If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Comprehensive Service for an annual investment of just: R2,713 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that we will provide to DEMO ENTITY (hereafter referred to as “the client”). Our engagement will be conducted by the International Standard on Related Services applicable to agreed-upon procedures engagements and we will indicate so in our report.

Scope of work

SPECIFIC AGREED UPON PROCEDURES ON YOUR BEHALF AS SET OUT IN ANNEXURE A

We have agreed to perform the procedures as laid out in the scoping section below to this engagement letter and report to you the factual findings resulting from our work. The procedures that we will perform are sole to assist you in your work. Our report is not to be used for any other purpose and is solely for your information. The procedures that we will perform will not constitute an audit or a review made by International Standards on Auditing or International Standards on Review Engagements and, consequently, no assurance will be expressed.

Regulatory obligations

We have a statutory obligation to report matters to a regulatory oversight body. Circumstances may arise where we are required to report certain matters to that body. Where permissible we shall bring such circumstances to your attention before doing so.

We confirm that neither the individual nor the firm is a registered financial advisor and does not provide financial advice by the provisions of the Financial Advisory and Intermediary Services Act 37 of 2002 (the FAIS Act). Should any financial advice be provided, that would be coincidental and informal. The individual or the firm does not intend that any such advice be acted upon and therefore the individual or the firm shall not be responsible for any loss, damage and/or expenses incurred by the client for acting on such advice. If financial advice is required, we can refer you to a registered financial advisor.

Representations by management

As part of our engagement process, we will request management to provide us with written confirmation concerning representations made to us or that we require in connection with the engagement.

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.
Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions
If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

ANNEXURE A

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Value Service for an annual investment of just: R1,454 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that you have requested Surplus Profit (Pty) Ltd (hereafter referred to as “Surplus Profit”) to provide to DEMO ENTITY (hereafter referred to as “the Client”).

You have approved the provision of the non-audit services listed in the scope of work below, under the terms and conditions of this engagement letter. Where specific work is undertaken under this letter, the nature and result of the service will be recorded in the final deliverable arising from such work.

Scope of work

ASSISTANCE TO OBTAIN A BBBEE CERTIFICATE

Other services
Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations
The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Acknowledgement and acceptance
Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions
If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Comprehensive Service for an annual investment of just: R3,399 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that you have requested Surplus Profit (Pty) Ltd (hereafter referred to as “Surplus Profit”) to provide to DEMO ENTITY (hereafter referred to as “the Client”).

You have approved the provision of the non-audit services listed in the scope of work below, under the terms and conditions of this engagement letter. Where specific work is undertaken under this letter, the nature and result of the service will be recorded in the final deliverable arising from such work.

Scope of work

We will perform the following services:
COMPILE AN ESTATE PLANNING REPORT

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions
If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Service excellence for an annual investment of just: R3,149 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that you have requested Surplus Profit (Pty) Ltd (hereafter referred to as “Surplus Profit”) to provide to DEMO ENTITY (hereafter referred to as “the Client”).

You have approved the provision of the non-audit services listed in the scope of work below, under the terms and conditions of this engagement letter. Where specific work is undertaken under this letter, the nature and result of the service will be recorded in the final deliverable arising from such work.

Scope of work

We will perform the following services:

FACILITATE MEETINGS ON YOUR REQUEST

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions

If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Software subscription for an monthly investment of just: R590 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that you have requested Surplus Profit (Pty) Ltd (hereafter referred to as “Surplus Profit”) to provide to DEMO ENTITY (hereafter referred to as “the Client”).

You have approved the provision of the non-audit services listed in the scope of work below, under the terms and conditions of this engagement letter. Where specific work is undertaken under this letter, the nature and result of the service will be recorded in the final deliverable arising from such work.

Scope of work

We will perform the following services:
YOUR CLOUD SOFTWARE SUBSCRIPTION

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:
Terms and conditions
If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Value Service for an annual investment of just: R15,912 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that we will provide to DEMO ENTITY (hereafter referred to as “the client”).

You have approved the provision of the non-audit services listed in the scope of work below, under the terms and conditions of this engagement letter. Where specific work is undertaken under this letter, the nature and result of the service will be recorded in the final deliverable arising from such work.

Scope of work

We will perform the following services:

COMPILE BUSINESS OR SHARE VALUE BASED ON CLIENT ASSUMPTIONS AND PROVIDE LIMITED ASSURANCE

This valuation is based on financial information provided by the directors and management, as well as assumptions developed by directors and management and us, with regard to the likely future performance of the business.

It should be noted that value is a subjective concept and the value of an interest in an enterprise to one person may differ from the value of that interest to another. However, we believe that this valuation is the most likely value that would have been arrived at based on the trading potential of the operation and taking into account the market projections.

Responsibilities of the Independent reporting accountant

We will conduct our engagement in accordance with the International Standard on Review Engagements applicable to the Examination of Prospective Financial Information, which requires us to conclude whether anything has come to the attention that causes us to believe that the valuation, taken as a whole, are not prepared on assumptions that are reasonable and, in the case of hypothetical assumptions, such assumption are consistent with the purpose of the information, and that the valuation is properly prepared on the basis of those assumptions, and that the valuation is properly presented and all material assumptions are adequately disclosed, including a clear indication as to whether they are the best estimate assumptions or hypothetical assumptions, and the valuation is prepared on a consistent basis with historical financial statements, using appropriate accounting principles.

A review of the valuation consists primarily of making enquiries of management and others within the entity involved in financial and accounting matters, applying analytical procedures and evaluating the sufficiency and appropriateness of the review evidence obtained.  A review also requires the performance of additional procedures when the practitioner becomes aware of matters that may the practitioner to believe the valuation as a whole may be materially misstated. These procedures are performed to enable us to express our conclusion on the reasonability of the valuation.  The procedures selected will depend on what we consider necessary applying our professional judgment, based on our understanding of your business and its environment, and our understanding of the applicable financial reporting framework and its application in the industry context.

As we are engaged to review the valuation and a review is not an audit:

1. There is a commensurate higher risk that any material misstatements that exist in the valuation reviewed may not be revealed by the review, even though the review is properly performed in accordance with the standards.
2. In expressing our conclusion from the independent review of the valuation, our report on the valuation will state that an audit has not been performed and will expressly disclaim any audit opinion.

Forecasts (where applied)

The directors are responsible for the assumptions and calculations on which the valuation is based. It is the sole responsibility of the directors to determine the appropriateness of a review engagement in the circumstances of the company, in compliance with the requirements of the Companies Act, and taking cognisance of any other requirements or agreements that may be applicable to the company.

Our independent review will be conducted on the basis that you acknowledge and understand that you have the responsibility:

1. For the preparation and fair presentation of the valuation on management best-estimate assumptions;
2. For such internal controls as you determine is necessary to enable the preparation of the valuation that are free from material misstatement, whether due to fraud or error; and
3. To provide us with access to all information of which you are aware that is relevant to the preparation of the financial statements, such as records, documentation and other matters, additional information that we may request from you for the purpose of the review, and unrestricted access to persons within the entity from whom we determine it necessary to obtain evidence.

As part of our review, we will request from management, and where appropriate, from those charged with governance, written confirmation concerning representations made to us in connection with the independent review.

Reportable irregularities in terms of Regulation 29 of the Companies Regulations, 2011

It is our responsibility to inform you regarding our obligation, in terms of Regulation 29 of the Companies Regulations, 2011, to report reportable irregularities to the Companies and Intellectual Property Commission (‘the Commission’). A “reportable irregularity” refers to any act or omission committed by any person responsible for the management of a company, which: 

1. Unlawfully has caused or is likely to cause material financial loss to the company or to any member, shareholder, creditor or investor of the company in respect of his, her or its dealings with that entity; or
2. Is fraudulent or amounts to theft; or
3. Causes or has caused the company to trade under insolvent circumstances.

We are not required to design procedures for the specific purpose of identifying reportable irregularities. However, we will consider all information that comes to our attention from any source in order to determine whether a reporting obligation arises. In instances where we are satisfied or have reason to believe that a reportable irregularity has taken place or is taking place, the practitioner responsible and accountable for the review engagement is required, without delay, to send a written report to the Commission. Such a report initiates a series of activities in accordance with Regulation 29 of the Companies Regulations, 2011, pertaining to discussing the report with the members of the Board of the company, obtaining representations from the Board and sending a final report to the Commission concluding on the existence and status of a reportable irregularity, including information relating to steps that have been taken for the prevention or recovery of any loss as a result thereof (if relevant). Please do not hesitate to contact us if you require further clarification regarding our obligation to report reportable irregularities to the Commission.

Reporting

As stated above, our review will be conducted with the objective of expressing a conclusion on the valuation and the assumptions used in preparing the valuation. Our review conclusion will be communicated in a written report. If the review conclusion on the valuation is unmodified, it is currently expected to read as follows:

“Based on our review procedures we have performed and evidence we have obtained, nothing has come to the attention that causes us to believe that the valuation of the company, and the directors assumptions thereon, do not provide a reasonable basis for the preparation and presentation of the valuation.”

However, the form and content of our report may need to be amended in the light of our findings obtained from the review.

Forecasts (where applied)

It must be emphasised that profit and cash flow forecasts necessarily depend on subjective judgement. They are, to a great or lesser extent, according to the nature of the businesses and the period covered by the forecasts, subject to inherent uncertainties.

In consequence, they are not capable of being audited or substantiated in the same way as financial statements which present the results of completed accounting periods.

Limitation of liability

We draw your attention to the limitation of liability clauses of the standard terms and conditions attached to our engagement letter.

Forms of report

For your convenience, this report may have been made available to you in electronic as well as hard copy format. Multiple copies and versions of this report may therefore exist in different media. In case of any discrepancy, the signed hard copy should be regarded as definitive.

Definition of Fair Value

Fair Market Value is defined as the price at which an asset would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell, and both having reasonable knowledge of the relevant facts.

“Price” is what a buyer is willing to pay for an item (“bid price”), what a seller is prepared to sell and item for (“offer price”) or the amount at which a deal is finally concluded (“transaction price”), and is merely an indicator of “value”. It is a historical fact and, therefore, easily verifiable.

“Value”, on the other hand, is an economic concept. It is an estimated hypothetical amount based on certain fundamental valuation principles at a specific date.

“Market Value” is the estimated amount for which a property should exchange on the date of the valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein both parties had each acted knowledgeably, prudently and without compulsion. The term “property” in the above context is not confined to real estate but includes rights to all types of assets.

The legal definition of value for fiscal purposes is what the relevant item will fetch in the appropriate market.

IFRS Fair value measurement defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Confidentiality

This report is confidential and has been prepared exclusively for you. It should not be used, reproduced or circulated for any other purpose, in whole or in part, except as specifically provided in our engagement letter, without our prior written consent, such consent will only be given after full consideration of the circumstances at the time.

We will not accept responsibility or liability to any party to whom the report may be shown or who may acquire a copy of the report.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.
Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:
Terms and conditions
If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Core Service package for a monthly investment of just: R15,000 plus VAT.

Dear Client

TERMS OF ENGAGEMENT

This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services that you have requested Surplus Profit (Pty) Ltd (hereafter referred to as “Surplus Profit”) to provide to DEMO ENTITY (hereafter referred to as “the Client”).

You have approved the provision of the non-audit services listed in the scope of work below, under the terms and conditions of this engagement letter. Where specific work is undertaken under this letter, the nature and result of the service will be recorded in the final deliverable arising from such work.

Scope of work

We will perform the following services:
FACILITATE AND ATTEND GROWTH ADVISORY BOARD MEETINGS

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation and other information requested in connection with our engagement.

Detection of fraud, error and non-compliance with laws and regulations

The responsibility for safeguarding and detecting fraud, error, and non-compliance with laws or regulations rests with yourselves as the Client’s responsible person. Management is also responsible for identifying and ensuring that the Client complies with the laws and regulations applicable to its operations.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions

If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit

The basis which this price is agreed upon

The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you agree to do as part of the agreed price:

You will benefit from our Value Service for a monthly investment of just: R4,649 plus VAT.

Dear Client

PARTIES The Parties to the Agreement are:

1. Surplus Profit (Pty) Ltd (“Surplus Profit”)
2. DEMO ENTITY (the “client”)

INTRODUCTION

• The client wishes to make use of the services of Surplus Profit in order to ensure compliance with all relevant regulations and statutory requirements governing the client’s business.
• Surplus Profit is willing to provide such services on certain terms and conditions and therefore the parties agree as follows:

APPOINTMENT

The client hereby appoints Surplus Profit who hereby accepts such an appointment to provide the services set out below for the duration of this agreement.

Other services

Surplus Profit offers a wide range of services in the areas of corporate governance, management consultancy, business advisory services, and taxation. Should you consider that there are any specific areas where we may be able to assist, a specialist director will be glad to meet you to discuss how we can help.

Availability of Information

We look forward to full cooperation with your staff and we trust that they will make available to us whatever records, documentation, and other information requested in connection with our engagement.

Acknowledgement and acceptance

Should this agreement not be confirmed as accepted by DEMO ENTITY within 90 (ninety) days from the date issued, it will be considered invalid. Surplus Profit will issue a new engagement letter for the proposed services.

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the terms of the engagement including the specific procedures which we have agreed will be performed as well as the standard terms and conditions per the link below:

Terms and conditions

If you wish to discuss the terms of our appointment further before replying, please let us know.

Yours faithfully

Surplus Profit Team

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.

As part of this fixed price agreement, you agree to do as part of the agreed price:

Dear Client,

You have chosen the Optimal Profit Package for a monthly investment of R1,502 plus VAT.

We at Surplus Profit (the Firm), would like to thank you for the opportunity to add value to your business. To avoid any misunderstanding, this Fixed Price Agreement defines the services we will perform for Regent Business (the Company).

In Appendix 1 below we set out the basis that this fixed price is based on. Any additional services that you requested are set out in Appendix 2 while the rewards are confirmed in Appendix 3. In Appendix 4 we have set out the “Basis of our relationship” which explains what you can expect from us, and what we expect from you. Lastly, Appendix 5 sets out exactly what we will do for you as part of your Value Pricing Solution. If you would like to upgrade to a different package please let us know and we will gladly change this fixed price agreement.

Payments

The payment method of this Agreement can be either via EFT or Debit Order. If you have selected the Debit Order option, you would have received a Payment Reward, reflected in Appendix 2. EFT payments are due by the 5th of every month, while direct Debit Orders will be loaded for the last day of every month.

Unanticipated Services

While our fixed prices entitle your company to services and guidance within the scope of the bundle you have selected with us, if your needs require additional work or services beyond the scope of your selected bundle, that work will be subject to an additional price, payment terms and scope to be agreed upon before the service is performed, and a Change Order will be issued to document this understanding. Furthermore, the parties agree that if any unanticipated needs arise, that Surplus Profit (Pty) Ltd. hereby agrees to perform this additional work at a mutually agreed-upon price.

Complete peace of mind

This agreement, in conjunction with our Standard Terms and Conditions, sets out the entire terms agreed between the parties relating to this engagement and supersedes all previous representations, warranties, and terms (whether in writing or not) previously made between the parties. Any amendments, additions, or alterations to this agreement shall not be effective unless in writing and signed by a duly authorised representative of each party.

Furthermore, it is understood that either party may terminate this Agreement at any time, for any reason, within 30 days (one calendar month) written notice to the other party after an 11 months period. It is understood that any unpaid services that are outstanding at the date of the termination, are to be paid in full within 30 days (once a calendar month) from the date of termination.

Terms of Business

Our Terms of Business and Operational Terms of Business can be downloaded and viewed by clicking on this link:
Terms of Business

Please ensure that you read and understand the contents thereof. By signing this Price and Scope of Work Agreement, we assume that you have read, understand, and agree to the Terms of Business. If you agree that the above adequately sets forth your understanding of our mutual responsibilities (and as set out in Appendix 1 to 6), please authorise this Agreement and return it to us.

Yours faithfully,

SURPLUS PROFIT TEAM

Welcome to Surplus Profit. We will now set out the basis upon which the price is agreed and list of selected services.
The table below confirms your details and the service you require. If any of these details change, please let us know as soon as possible so that we can amend this fixed price agreement.

As part of this fixed price agreement, you have also asked us to carry out the additional services listed below.
As part of this fixed price agreement, you qualified for the following rewards:

To be effective, we believe that professional relationships need to be based on mutual trust, mutual support, mutual respect, and mutual integrity. Both the Firm and the Company shall nominate one person as the main point of contact to and through whom all written communication will flow.
As a result, we only work with clients who share our belief in the importance of these four factors. In practice, that means that: We undertake to do everything in our power to:

• Maintain the high standards of integrity, honesty, openness, professionalism, and confidentiality that you rightly expect from us
• Refer our contacts to you where we believe they could benefit from your products and services
• Always be on the lookout for new ideas that could help you to build an even more successful business and achieve your business goals
• The Firm agrees to treat as secret and confidential and not at any time for any reason to disclose or permit to be disclosed to any person or otherwise make use of or permit to be made use of any information relating to the Company’s technology, technical processes, business affairs or finances or any such information relating to an associate, supplier, customer or client of the Company where knowledge or details of the information was received during the period of this Agreement and upon the termination of this Agreement for whatever reason.

You undertake to do everything in your power to:

• Maintain the high standards of integrity, honesty, and openness that we rightly expect from each other. Pay our fees as agreed to in this document by the latest on the last day of each month. Please arrange late payments. Provide us with any information and answers we need to carry out our work – within the mutually agreed timescales
• Inform us immediately if we do anything that you are in any way unhappy with
• Refer any possible contacts to us where you believe they could benefit from our help
• Refrain from, for the duration of, nor for the period of six months following termination of, this Agreement solicit, interfere with or endeavor to entice away from the Firm any person, firm, employee, or company who was at any time during the period of twelve months immediately prior to the termination of this Agreement a client or employee of the Firm or its related entities.