Accountants Trust Accounts or Transacting in Client Moneys
Accountants who hold, receive or disburse client moneys are subject to APES 310. APES 310 states that Members who opened a trust account accounts or obtained authority to transact in client monies before 1 July 2011 must comply with the audit requirements of APES 310 within three months of the applicable year-end date, which is 31 March each year.
A Member in public practice must ensure that the Member’s compliance with the requirements of the Standard is audited annually within three months of the applicable year-end date and must appoint another member in public practice as auditor of client monies to perform the audit.
An audit would involve, among other compliance and verification testing, obtaining the monthly trust bank account reconciliations and testing the underlying information. It also involves testing receipts and payments from the trust account to supporting documentation, authorisation by clients and engagement letters.
We only report to the accountant’s registered authority (CPA or ICAA) if the audit report is qualified.