Special terms and conditions for business service engagements

21.1 Subject matter of the engagement

It is the Client who is obliged to submit correct statements and prepare its reports according to applicable laws. BDO has only agreed to provide the services governed by the Engagement Agreement, on the basis of information provided by the Client. The collaboration between the parties relies on good, complete communication and the Client providing correct information.


21.2 Performance of the engagement

We will perform our Engagement in accordance with the Engagement Agreement and requirements made in, or pursuant to, statute and according to the Generally Accepted External Accounting Practice ("GRFS") and otherwise assist in taking care of the Client's interests. The Client is obliged to assist in good faith in compliance with the requirements.

The Engagement does not mean that the Client's own responsibility for the accounting is reduced by using an accountant, cf. GRFS Section 3.2, sixth paragraph.

Accounting material that is handed over to BDO must be complete and relate to the business. Deadlines are set out in the Engagement Agreement.

If it is not clearly stated in the accounting material how it is to be treated, the Client must provide necessary supplementary information without being asked.

BDO must be informed before the Engagement begins and continuously as needed regarding any matter that may be significant for the performance of the Engagement. The Client must inform BDO about factual matters that are necessary for BDO to be able to prepare correct reports and statements. In addition, the Client must inform BDO about notices and information from public authorities that are relevant for the Engagement.

The Client must review the accounting, reports, tax returns, etc. as soon as they are made available and make BDO aware of possible errors and deficiencies.

Enquiries from BDO are to be answered timely by the Client without delay.

Independent services and tasks provided by us beyond what appears in the Engagement Agreement will be performed as specifically agreed and upon entering into a new Engagement Agreement.


21.3 Retention of accounting documentation

We will return the Client's accounting documentation upon termination or as specifically agreed. The Client is obliged to accept the documentation according to the agreement. Unless otherwise agreed, the Client must immediately take possession of the accounting documentation upon cessation of the Engagement. If the Client has not taken possession of its accounting documentation within 90 days after written notice from BDO, the Client will be regarded as having surrendered the accounting documentation and its rights and duties related to this. This means, under GFRS 4.7, that the Client will thus be regarded as having granted consent to BDO to shred, delete or destroy all accounting documentation without further notice, including any backup copies, at the Client's expense and risk.

If the Client does not wish to have the accounting documentation delivered and the retention period has expired, the accounting documentation will be shredded or deleted within one year after the expiry of the retention period, c.f. GRFS Section 4.4.

We reserve the right to withhold documentation produced by us until all outstanding claims have been honoured within the legislation applicable at any time.

For the period from when written notice from BDO is sent and until transmission, shredding, deletion or destruction of accounting documentations takes place, BDO may require payment for any storage costs, including licence costs.


21.4 Authorisation for obtaining and disclosing information

BDO or BDO's employees are granted authorisation to obtain accounting information and other relevant information from third parties.

BDO or BDO's employees are also granted authorisation, when it is included as a part of the Engagement, to:

  • Complete and submit official forms via Altinn or another filing portal operated by an agency or agencies requiring the form(s) to be filed. This includes signing the form(s), to the extent this is not prohibited by law.
  • Provide ledger information to customers, suppliers, auditors and authorities at their request.

To the extent an authorisation structure is required with respect to third parties during the Engagement, the Client is obliged to grant us special written authorisation.

When signing on behalf of the Client, we confirm, as the agent, only that filed forms agree with recorded and documented information and that the information, to the best of the agent's knowledge, agrees with the actual circumstances.

The authorisation is valid from entering into the Engagement Agreement and until the Engagement ceases, or the authorisation is revoked in writing.


21.5 Duty of confidentiality

The duty of confidentiality that appears under Section 7 in these Terms and Conditions does not prevent an accountant from providing information about the Engagement to the principal's chosen auditor.


21.6 Ownership

The Client owns its own provided documentation. The Client also owns completed and incomplete accounting documentation which BDO has prepared for the Client.

BDO has a duty to hand over accounting documentation which BDO has prepared as part of the Engagement, unless the rules on right of retention are applicable.

BDO retains the rights to its own tools and methodological basis. BDO may also utilise suitable general knowledge (know-how) obtained in connection with the Engagement as long as this does not entail a breach of a duty of confidentiality or good business practice.


21.7 Breach and right of retention

In the event of the Client's breach, BDO may discontinue the work and/or exercise a right of retention to the result of the Engagement until the breach ceases.

BDO may not exercise a right of retention to accounting documentation prepared by BDO and for which the Client has paid.

The Client bears the risk of exceeding deadlines as a result of its own breach. When the Client's breach ceases BDO may choose, in exchange for a supplementary fee, to perform the Engagement with increased effort or beyond normal working hours so that exceeding deadlines is avoided if possible.


21.8 Termination

If the event of a material breach, the other party may terminate the agreement in whole or in part. Before a termination, the terminating party must explain the breach and notify that termination is being invoked.

BDO will be considered to have materially breached the agreement if:

  • Performance of the Engagement deviates significantly from the rules that apply to the services that BDO has agreed to perform under the Engagement Agreement.
  • BDO's deadline for delivery is not met, and delivery has still not occurred within one week after written notice was received from the Client and exceeding the deadline is not due to circumstances on the part of the Client.

The Client will be considered to have materially breached the agreement if:

  • The Client has not paid fees due plus interest within 14 days from BDO's reminder.
  • BDO is not given an opportunity to perform the Engagement in a proper manner through BDO not receiving necessary documentation.
  • An attempt is made to instruct BDO to perform the Engagement contrary to laws and rules.
  • The Client deliberately makes bookings or records etc. in the system to avoid a tax or charge contrary to applicable regulations.

If one of the parties unjustifiably shuts out or, in another way, hinders the other party's access to the IT system as stipulated in the agreement document ‟Joint use of IT systems”, this will also be regarded as material breach.

If the Client materially breaches the Engagement Agreement and BDO terminates the agreement, BDO is entitled to compensation in the amount of at least three times the monthly accounting fee. The monthly accounting fee for which compensation may be claimed will generally be set at the average monthly fee for the last 12 months, or a shorter period of time if the duration of the Engagement has been shorter. If the fee for the subsequent three months would have been higher than the average monthly fee this will be the basis for the compensation claim.

Contrary to what appears under Section 15.5 in Part I, our total financial liability is limited to 10 times the annual accounting fee, limited to a maximum of NOK 1 million.

If debt settlement, voluntary arrangement or bankruptcy proceedings are opened for the Client, or the Client becomes insolvent, we are entitled to terminate the agreement with immediate effect unless otherwise provided under mandatory law.


21.9 Termination

The parties may terminate the agreement with four months' written notice, calculated from the first day of the month after the notice. If another period is specified in the Engagement Agreement, it applies. If the Client does not contribute to our being able to deliver the agreed services during the notice of termination period, this is regarded as material breach and grants a right to compensation under the rules in Section 21.8.


21.10 Use of IT systems

In the event of joint use of our IT systems, we are not liable for any changes, additions or deletions of recorded information that are carried out by the Client in our IT system. This also includes any consequences if this results in errors or delays in the Client's accounts, mandatory accounting reporting and/or other official forms, etc.


21.11 Liability for errors that arise from the client

BDO also disclaims any liability for errors or deficiencies in IT systems, communications, data security, lack of maintenance, backup copies, reconstruction or other errors or deficiencies.


21.12 BDO’s use of third-party software

We use third-party software in deliveries to our clients. This third party is responsible for the service being available according to terms and conditions agreed between us and the third party. In the event of an error, we will report the error to the third party, but we are not liable to the Client beyond the duty to monitor the error.


21.13 Use of subcontractors

We reserve the right to make use of subcontractors in the performance of the Engagement.