Legal Profession Uniform General Rules 2015, a law practice is required to have its trust records externally examined once in each financial year if it has received or held trust money, excluding transit money.
An external examination covers a law practice’s trust records from the beginning of April to the end of March in the following year. A report on the examination must be lodged with the Law Society by 31 May each year.
If you think there may be some breaches due to COVID-19 related delays, you may be able to request assistance from the law society on a proactive basis.
How to prepare for the trust examination:
Short planning call with auditor to agree on logistics and briefing on any relevant changes to prior year and compile or make available the following primary information:
- Bank statements for each month (from April to March).
- Trust trial balance for each month.
- Trust account reconciliations for each month.
- Trust cash books for each month. Samples of receipts will be selected.
- Trust account payments cash books for each month. Samples of payments will be selected.
- Cheque butts and bank statements for each month.
- Trust transfer journals for the year. Samples will be selected from the journals.
- Sample of legal fee documentation for any client in the year outlining cost and the corresponding invoice.
- Controlled money trust records (bank statements, trial balance, receipts and any documents you keep).
- Provide any letter of credit issued for financial year ended 31 March.
- Please have Part A and Part B completed before end of April.
Hall Chadwick carries out numerous external examinations for a reasonable fixed fee. Please contact Sandeep Kumar, Audit Partner om +61 2 9263 2631 or email@example.com if you require a seamless annual external examination of your trust account.