The first question many firms ask is ‘What constitutes an audit?’ Here’s the good news! An audit is broadly defined under the Audit Shield Master Policy to include any official audit, review, enquiry or investigation in respect of your client’s lodged returns, undertaken by IR or other New Zealand government revenue authorities, and which your client is compelled to respond to, or act on.
A claim can be lodged for the professional fees you would normally charge your client for assisting them to respond to audit activity instigated by IR or other New Zealand government revenue authorities. There is no excess on any claims made by your client on the Audit Shield Master Policy and there is also no minimum claim amount.
Once your client is covered under the Audit Shield Master Policy, the client’s previous lodgements are all covered.
The audit activity must be instigated during the period of cover, and includes responding to audit activity of returns you did not lodge or prepare providing you are the registered tax agent of the client when the audit activity commences.
Insurance Council of New Zealand
Lloyd’s is a member of the Insurance Council of New Zealand and its New Zealand coverholders adhere to the Fair Insurance Code, which provides you with assurance that we have high standards of service for our customers.