SOLICITORS TRUST ACCOUNTS AUDIT MELBOURNE
While performing a solicitor’s trust account audit, the auditor must form an opinion on whether the law practice during the period of the examination have complied with the requirement of the relevant legislation on how to handle trust account money(ies).We are approved solicitor/Lawyer’s trust account auditor and charge a fixed fee, quoted upon request.
The Solicitor’s Trust account auditor must obtain evidence to determine the following:
- That the accounting and transactions record related to the trust have been properly maintained.
- There is no loss or deficiency of the trust monies.
- That there is no failure to comply with the provision of the act.
The solicitor’s trust account must receive the auditor’s approval via the approved auditor’s signature stating that the trust account has been maintained and complies with regulation.
The operation of a solicitor’s trust account is regulated by governing body in those particular state/territories; therefore it is necessary to have a good understanding of the requirements of the relevant Act. The timing of the audit is determined by the Act that governs the state or territories.
The responsibility of organizing and appointing an approved auditor to audit the trust accounts is that of the solicitor. The solicitor must organize the audit within a specific period of time each year. The auditor must also pay for the audit through their general business account and not use any of the trust accounts.
The auditor has the right to examine all the transactions of the trust account as-well as the records and files of the solicitor’s practice.
Before appointing an auditor, the auditor must be qualified in order to conduct the audit. This is outlined in the legislation and before you accept an engagement agreement.
Our engagement agreement to audit the solicitor’s trust account clearly stipulates the scope of our audit. The engagement agreement clearly indicates the responsibility of the solicitor, which includes the requirement to maintain an adequate system of internal controls for proper record keeping.
The Audit Process:
The following documents are examples of supportive documents which should be available to be audited:
- Cheque requisition form for all withdrawals.
- Cash receipts and corresponding register.
- Cash Payments register.
- Trust transfer journals.
- Bank statement, bank deposit slips, cheque butts.
- Trust Account ledger
- Supporting documents for any investment trust accounts.
- All other supporting documents that may form part of the audit process.
- EFT Multipay records.
Looking for a Solicitor’s Trust Account Auditor?
If you are looking for an Auditor and if you would like to discuss your options with us, we have an expert team ready to help. Please get in touch with our friendly team. Give us a call today on 03 8609 1889 or email us on info@a1accountants.com.au and one of our friendly staff will be able to assist you with your queries.