Terms of service
GENERAL CONDITIONS
1. Subject of the Agreement
1.1. The Contractor will audit the reports provided for in the "Subject matter" section of the Special Terms and Conditions. The purpose of the audit is to express an opinion on:
(1) whether the Customer's financial statements present fairly, in all material respects, the financial position, results of operations and cash flows of the Customer,
(2) whether the Customer's financial statements have been prepared in accordance with the legal acts of the Republic of Lithuania regulating bookkeeping and preparation of financial statements, as well as other legal acts; and
(3) whether the information provided in the Customer's annual report is consistent with that of the financial statements (if any).
1.2. The purpose of the principal's audit is to provide reasonable assurance that the financial statements are free from material misstatement.
The Contractor undertakes to plan the audit in a manner that provides sufficient opportunity to detect material misstatement of the financial statements and accounting records (including any material misstatement due to fraud, error or violation of laws and regulations).
1.3. The audit will be conducted in accordance with International Standards on Auditing (ISA), issued by the International Federation of Accountants (IFAC). Those standards require that an auditor plans and performs the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation.
1.4. Because of the test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, there is an unavoidable risk that even some material misstatements may remain undiscovered.
1.5. The procedures required to conduct an audit in accordance with International Standards on Audiing will be determined by the auditor having regard to the requirements of Business Accounting Standards, legislation and regulations of the Republic of Lithuania and the terms of this audit agreement.
2. Audit scope and results
2.1. During the audit, the Contractor will evaluate the Customer's accounting and internal control systems to determine whether it provides a reasonable basis for the preparation and preparation of its financial statements and Customer records.
2.2. The nature and extent of audit procedures will depend on how the contractor evaluates the customer's accounting and internal control systems.
2.3. The contractor shall plan the audit work in advance in preparation of the audit plan.
However, depending on the circumstances, the Contractor may change the scope of the audit and the areas of emphasis.
2.4. The audit procedures will be performed from the date of signing the contract until the date of the auditor's report.
2.5. The audit defined in this contract will be completed when the results of the audit work specified in this contract are provided to the Client. This will be considered as a transfer of services which certifies that the obligations have been duly and timely discharged, unless the parties have signed a separate deed of transfer.
3. Obligations of the Contractor
3.1. In performing the audit, the Contractor undertakes to use all necessary skills, to be attentive and diligent and to perform his duties in accordance with the applicable professional standards. The Contractor may employ experts, other auditors and other third parties in accordance with audit standards for the proper conduct of the audit.
3.2. Submit the reports provided for the special part of the contract.
3.3. The auditor's report shall be signed by a secure electronic signature to the person authorized by the Client by e-mail. The auditor's report will not be submitted on paper.
3.4. The interim audit report and the letter to the leaders are submitted in electronic form (by email).
3.4.1. The audit is not intended to identify all significant deficiencies in the Customer's internal control system, therefore, the Letter to management will identify only those deficiencies in Customer's accounting and internal control systems and other business aspects that the Contractor noticed during the audit. The contractor shall only carry out a review of the internal control system to the extent it is able to provide audit results. Therefore, the Contractor's comments on this system will not necessarily cover all possible improvements that may have been proposed in the context of a more in-depth special purpose review.
3.4.2. The interim audit report and the letter to the leaders can be withheld if the Contractor has not any material observations.
3.5. To ensure secrecy and security of any documentation and information that is obtained by the Auditor during the audit, except when the Auditor is required not to do so by the legislation of the Republic of Lithuania. All audit working papers are in the ownership of the Auditor. The information that the Auditor conducted the audit at the Client is not considered confidential.
4. Obligations of the Client
4.1. The Client undertakes to submit the draft financial statements to the Contractor 4 weeks prior to the date of the auditor's report and other information required for the audit, in accordance with the list of information provided by the Contractor.
4.2. The Client undertakes to submit to the Contractor a set of financial statements signed by the head of the company and an annual report 2 working days before the date of submission of the auditor's report, as well as a Management Representation Letter.
4.3. The Client undertakes to notify the Contractor of the place and time of the annual inventory of inventories and fixed assets one week prior to the commencement of the planned inventory.
4.4. The Client will provide unrestricted access to whatever records, documentation and other information requested in connection with the audit.
4.5. The Client has committed to provide the Contractor with unrestricted contact with the supervisor and any other necessary staff who have provided appropriate explanations during the audit. The Client agrees and undertakes to protect the Contractor, its employees and / or its representatives from any liability that may arise from inappropriate and incorrect submission of information by the Client's employees.
5. Contractor responsibility
5.1. The Contractor's liability is limited liability for long-term damage (loss, loss, etc.), which the Client would suffer as a result of the willful or gross negligence of the Contractor, its employees and / or agents or third parties in performing the services specified in this Agreement.
5.2. The Contractor's former, prospective or existing employee and / or representative will not be individually liable to the Client for any Contractor's obligations and responsibilities under this Agreement.
5.3. The Contractor undertakes not to assign and / or assign to any third party any rights, obligations and / or
duties and claims arising from this Agreement without the Customer's prior written consent.
5.4. Due to the nature of the audit procedures and other limitations of the audit and the limitations of the accounting and internal control system, the Contractor does not warrant that any material errors and / or material misstatements, if any, will be detected.
5.5. No former, present or future employee or representative of the Contractor or the Client will not be individually liable to the other Party for any obligations and responsibilities of the first Party under this Agreement.
6. Obligations of the Client
6.1. The responsibility for the preparation of consolidation pack is that of the Management of the Client. This includes the maintenance of adequate accounting records and internal controls, the selection and application of accounting policies, and safeguarding of the assets of the company.
6.2. The customer and his management are responsible for the correct and complete presentation of the information and data required for the audit (written and oral) including, but not limited to, information reflected or not reflected in the financial statements.
6.3. In the event that the Customer fails to comply with the provisions of this Agreement regarding the provision of information, i.e. fails to submit documentation prepared to acceptable standards on a pre-agreed schedule, or Customer's employees fail to cooperate with the Contractor, or Customer fails to provide all other necessary documentation, data and / or information that is valid and compliant with this Agreement and required for audit under this Agreement; The Client does not submit the complete list of information, the draft financial statements, the annual report prepared by the Client's Board (manager) in a timely manner, the Contractor's deadline for submission of reports is extended until the required documents, data and / or information are provided.
7. Information submission
7.1. The working documents prepared by the Contractor during the audit and / or the information prepared by the Client and provided to the Contractor for the purpose of the audit and received by the Contractor during the audit shall be considered as working documents and shall be the Contractors property. Working documents are confidential and shall be kept by the Contractor in accordance with the requirements of the laws of the Republic of Lithuania and the policies and procedures established by the Contractor, but may be disclosed in accordance with applicable law.
7.3. The Parties authorize each other to send and receive data and information which is a necessary part of the work (including, but not limited to, draft audit results), by e-mail (Internet). The Parties understand and acknowledge that the use of email is risky in that neither party can guarantee the confidentiality of information and data transmitted by email and protect it from access by unauthorized third parties. The Parties further acknowledge that they shall not be liable to each other if third parties use or send information and data sent or received by e-mail against one of the Parties or cause such damage (loss, etc.) to the Party.