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Trust Account Audits

 

What is a Trust Account?

A Trust Account is where an adviser, solicitor or other professional holds a client’s money on behalf of them. The trust account is usually used to park a client’s money until they decide how they want to invest their money. In each circumstance where a professional holds money on behalf of their client in trust, they are required to have their trust accounts audited annually.

If you would like further information on trust account audits relevant to your profession, click on your selection below:

 

Key Dates for Trust Account Audits

 

Trust Account Review Period
Lawyer’s trust account 31 May
Real Estate Agents and Business Broker’s trust account 30 September annually, or within 3 months of any separate audit period applicable
Accountant’s trust account 31 March annually, within 90 days of that date or such other date as determined by the ICAA

What records does the auditor need?

Essentially, the auditor will need access to all records and documents relating to money held in a trust account. It is best if you have this information already prepared, and then meet with the auditor before the auditor starts any work. You do not have to wait until you obtain a report form to provide access, you can provide these details to the auditor as soon as possible after the end of the audit period.

The auditor will need:

  • All trust account statements for the reporting period
  • Trust account deposit books
  • Trust account receipt books
  • Trust account cheque butts or details of electronic funds transfers
  • Cash book (details of daily receipt and payment transactions) – manual and computer systems
  • Monthly trust reconciliations records
  • Trust account journals and client ledgers
  • Monthly trust account trial balances and records of any overdrafts

Apart from providing you with a report at the end of the audit, Quinns can offer you additional services:

  • Work with our professionals who have a good knowledge of trust account practices and are available to give useful advice
  • Have someone to turn to should a problem with the trust account arise; such as being unable to reconcile the trust account or being uncertain how to treat certain transactions
  • Have someone who can provide training for your staff in trust account procedures. This is particularly relevant should you need to replace your existing trust accountant
  • Receive advice on changes to trust account rules, regulations and guidelines and how they may affect your practice
  • Draw on our experience as auditors of other trust accounts which enables us to advise on systems and procedures that may be better suited to your practice.

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Our dedicated team can assist you with all your auditing needs. Complete and submit the Express Enquiry form on the top right hand side of this page and we will contact you to discuss your enquiry or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment.