Trust Account Audit

Money held on behalf of clients demands accurate records, clear authority for transactions and disciplined oversight. Optimum Auditing Services provides independent trust account audits, client money assurance and external examinations tailored to your profession, jurisdiction and reporting obligations.

Our services cover real estate agents, liquidators, solicitors, barristers and approved clerks, accountants and travel agents. We agree the applicable reporting framework, examination period and scope at the outset, so you understand the records required and the report to be delivered.

Real estate agents’ trust accounts

We audit trust accounts used to hold property sale deposits, rental receipts and other client funds. Our work examines the relationship between bank balances, trust cashbooks and individual client ledgers, with attention to the timing and authority of receipts, payments and transfers.

We consider owner disbursements, commission withdrawals, outstanding reconciling items and unusual or debit ledger balances. The audit is planned around the relevant state or territory requirements, with clear communication about exceptions, supporting evidence and reporting deadlines.

Liquidators and insolvency practitioners

Administration funds require a clear audit trail from asset realisations and other receipts through to payments and distributions. We undertake appropriately scoped audit and assurance engagements over administration accounts and client money records, with attention to the separation of funds between appointments.

Depending on the engagement, our procedures may cover bank reconciliations, supporting receipts and payments, remuneration approvals, disbursements, creditor distributions and the allocation of transactions to the correct administration. We establish the specific statutory, professional, court-ordered or contractual reporting requirement before agreeing the work.

Solicitors’ trust accounts

Our external examinations focus on how a law practice receives, records, holds and disburses trust money. We examine general trust account records and other forms of trust money within the applicable scope, including controlled money and money held under a specific power where relevant.

Key areas include client matter ledgers, bank reconciliations, payment authorities, transfers to the office account, costs withdrawals and unresolved balances. We communicate discrepancies promptly and prepare the required external examiner’s report, reflecting any reportable matters identified during the examination.

Law Society External Examiners — NSW, VIC, ACT & WA

We provide external examination services for legal practices in New South Wales, Victoria, the Australian Capital Territory and Western Australia, subject to the relevant appointment and eligibility requirements. Each engagement follows the rules and reporting process applying to the practice’s jurisdiction.

• NSW: Trust record examinations and reporting under the Law Society of NSW requirements.
• VIC: External examinations and reporting under the Victorian Legal Services Board and Commissioner framework.
• ACT: Examinations under the ACT Law Society framework, including its examiner designation and appointment requirements.
• WA: Trust record examinations and reporting under the Legal Practice Board of Western Australia requirements.

We clarify the reporting period, required declarations, supporting records and submission arrangements when planning the engagement.

Barristers and approved barristers’ clerks

Client money arrangements for barristers and clerks require careful consideration of who is authorised to receive and hold funds. We assess the practice structure and applicable rules before agreeing an external examination or other assurance engagement.

For eligible arrangements, our work considers receipts, allocation to the correct client or matter, payment authorities, fee disbursements and reconciliations. In Victoria, the external examination framework expressly includes approved barristers’ clerks operating trust accounts. The requirements for an individual barrister or another arrangement must be assessed separately.

Accountants’ trust accounts and client monies

Accounting practices entrusted with client money need reliable records and clear instructions governing its use. We undertake client monies audit or review engagements, as applicable, with reference to APES 310 Client Monies and the agreed professional reporting requirements.

Our work considers client authorisations, segregation of funds, receipts and payments, reconciliations, supporting records and relevant controls over access to client money. We determine the applicable engagement and reporting requirements from the way funds are held or controlled, rather than assume every arrangement has the same obligations.

Travel agents’ trust accounts

For travel businesses operating a trust or designated client money account, we provide appropriately scoped audit and assurance services over customer deposits, supplier payments, refunds and outstanding booking balances.

We examine reconciliations between booking records, customer balances and bank accounts, together with the supporting authority for payments and transfers. The scope may arise from a trust deed, accreditation arrangement, contractual requirement or an independently commissioned engagement. We confirm that requirement first; a trust account audit is not automatically mandatory for every Australian travel agent.

Clear preparation. Focused examination. Practical reporting.

We typically request bank statements, reconciliations, client or matter ledgers, transaction listings, payment authorities and prior reports. Information about account openings, closures, software changes and earlier findings helps us focus the work.

Significant discrepancies and missing evidence are raised clearly so the responsible person can respond. Our conclusions reflect the evidence obtained and the relevant reporting obligations. Your organisation remains responsible for safeguarding client funds and maintaining appropriate records and controls.

Professional and regulatory guidance: NSW property trust accounts; ASIC insolvency guidance; APES 310 Client Monies; Law Society of NSW; VLSB+C; ACT Law Society; Legal Practice Board of WA.