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ICAA limited liability scheme
As members of the Institute of Chartered Accountants in Australia (ICAA), Vincents is now a participant in an Institute scheme that limits the liability of its members. The ICAA scheme came into effect on 1 February 2008 and is designed to limit the maximum liability for damages arising from an occupational liability claim against a member of the firm.
Effectively, the scheme identifies participating members as being responsible professionals, subject to supervision and control by their professional body, and provides that those members will have adequate resources to meet claims made against them to a specified limit.
For more information on the scheme, contact the national office of the Institute of Chartered Accountants in Australia (1300 137 322).
Vincents' commitment
As a member of the ICAA, Vincents is committed:
+ to achieve and maintain the appropriate level and currency of professional qualifications and experience;
+ to adhere to a prescribed code of ethics;
+ to adopt the Institute's pre-existing complaints and disciplinary procedures; and
+ to maintain business assets and/or insurance to meet claims made against them to a prescribed limit.
Details of the limitation
The scheme will limit the liability for damages arising out of a cause of action for occupational liability (the “Limitation Amount”), which may be awarded against a person to whom the scheme applies, as follows:
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Up to 30 June 2008, the Limitation Amount shall be $500,000, where the engagement fee is less than or equal to $50,000.
- Between 1 July 2008 and 30 June 2009, the Limitation Amount shall be $750,000, where the engagement fee is less than or equal to $75,000.
- After 1 July 2009, the Limitation Amount shall be $1 million, where the engagement fee is less than or equal to $100,000.
These Limitation Amounts apply where the fee payable for the service to which the cause of action relates is a reasonable charge for the service provided or which has failed to be provided:
- Where the fee exceeds $50,000 (increasing to $75,000 from 1 July 2008 and $100,000 from 1 July 2009), the Limitation Amount shall be a multiple of ten times the fee, but must not exceed a monetary ceiling of $75m in relation to audit and related services and $20m in relation to non audit or insolvency services.
More information
To find out more visit the ICAA website.
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