The Property Agents and Land Transactions Act 2005 refers, in Section 147(1)(d), to the making of regulations regarding the auditing of accounts in which trust money is held by real estate agents, property managers and general auctioneers.
The Property Agents and Land Transactions Regulations 2006 refer, in regulations 30-37, to the provisions which relate to the conduct of audits and the lodgement of an audit report.
Regulation 30 – defines the “audit year” for the lodgement of an audit report as being the period of twelve (12) calendar months ending on 30 June each year and a “prescribed period” in relation to a property agent who dies or a person who ceases to carry on the business of a property agent in any audit year, as being the period from immediately after the end of the previous audit year to the day in the audit year on which the person dies or ceases to carry on the business.
Regulation 31 – an audit undertaken by an auditor must be completed within three months after the end of each year. Also, an audit must be undertaken within three months after the day on which a business ceases to be conducted and also within three months of the date on which a licensee dies. The Board, at any time and at its own expense, may cause the trust account records of a property agent to be audited.
Regulation 32 – property agents who do not have any trust account transactions may lodge with the Board a declaration to that effect and the lodgement of that declaration has the same effect as the lodgement of an audit report. (Form 10 is available on the website for that purpose).
Regulation 33 – all property agents, whether their trust accounts are being audited at their own request, or at the request of the Board, must co-operate fully with the auditor and allow access to the records at all reasonable times.
Regulation 34 – an auditor is required to complete an audit within three months of the end of the year in respect of which the audit is carried out, or in the case of an audit for a person who has ceased to carry on business, or has died, within three months after the end of that period.
When an audit is requested by the Board, the Board may specify the time for its completion.
Regulation 35 (1) – as soon as possible after the audit is completed, the report must be given to the person who appointed him or her (the property agent), together with a copy certified by the auditor to be a true copy.
Regulation 35 (2) – sets out the information an auditor must provide to the Board in the audit report.
Regulation 35 (3) – requires that the auditor, should he/she discover that the requirements of the Act in respect of trust money and the keeping of trust accounts have not been complied with fully, the auditor must specify in the audit report the matters in respect of which the Act has not been complied with fully.
Regulation 36 – provides that an auditor must give a report to the Board as soon as practicable after discovering one or more irregularities, that is the trust accounts were being kept in a manner which prevented them from being properly audited; something that appears to the auditor to involve dishonesty or a breach of the law; a deficiency of trust money in the trust account or ledger account, a failure to pay or account for trust money, or a failure to comply with the provisions of the Act relating to the keeping of trust accounts.
A report lodged as required above is to specify the details of each irregularity discovered by the auditor and be signed by the auditor with a copy being given to the property agent.
Regulation 37 – requires the property agent to give the audit report to the Board within seven days after receiving it from the auditor.
Visit the Property Agent Board for more information.
Audit Period: 1 July to 30 June
Audit Due Date: Estate agents are required to procure their audit reports by 30 September, and to have lodged a copy of the audit report within 7 days of receiving it from the auditor.
Audit Report submitted to: Agents are to submit the report by email, fax or post to:
(03) 6281 3477
Property Agents Board
Level 2, 172 Collins Street
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.