Who is required to have their trust accounts audited?
The following people must have their trust accounts audited if they received or held trust money during the financial year ending 30 June 2019:
a licensee (corporation or individual)
a former licensee (corporation or individual), or
a personal representative of a licensee.
In most cases, it is the licensed corporation that receives and is responsible for trust funds. Therefore, a trust account audit must be effectuated by the licensed corporation.
However, if an individual licensee receives and is responsible for trust money, then a trust account audit must be effectuated by the individual licensee.
Who is required to submit an audit?
All trust account audits must be completed and submitted online by the auditor through the Auditor’s Report Online portal.
When must the audit be submitted?
All audits must be submitted to the Secretary within 3 months after the end of the audit period and no later than 30 September 2019.
Please note that all previously approved alternate audit periods are now rescinded.
If a trust account audit is not submitted by the due date, licensees could be disqualified from holding a licence and possibly prevented from renewing a licence.
Who can conduct the audit?
Auditors must be registered with the Australian Securities and Investments Commission (ASIC) or be qualified under section 115 of the Property Stock and Business Agents Act 2002.
Registered audit companies, authorised company auditors and members of a Professional Accounting Body holding a Public Practising Certificate or Certificate of Public Practice can conduct the audit.
Professional Accounting Body is defined under the Australian Securities and Investments Commission Act 2001 e.g. CPA Australia, the Institute of Chartered Accountants of Australia and the National Institute of Accountants.
If no trust money is held in 2018/19
Licensees, whether a licensed corporation or an individual licensee, no longer need to lodge a statutory declaration with NSW Fair Trading if they have not held any trust money during 2018/19.
Licensees who have not held any trust money during the year preceding their licence renewal date are required to indicate this on their licence renewal form.
Audit Period: 1 July to 30 June
Audit Due Date: 30 September
Audit Report submitted to: From 1 July 2019, the auditor must lodge all audit results with Fair Trading. This is a change from previous years when only qualified audits needed to be lodged with Fair Trading.
We are qualified trust account auditors and can provide independent assurance on the operation of your trust accounts. Our professional team provides their auditing service in a timely and effective manner allowing your firm to fully comply with the regulations without unnecessary hindrance to your staff. Our experienced audit team will:
- Review your practices and procedures.
- Identify potential issues with your trust account.
- Provide you with the necessary audit report.
Our Fixed Fee
We charge a fixed fee as per our Schedule of Fees page.
Utilising best practice approach and with our experience in auditing trust accounts, we are able to employ the most efficient procedure with the value added services to achieve savings to your firm.
Give us a call on 1300 007 673 to speak with one of our fully qualified trust account auditors and benefit from our experience.