Overview of Trust Account Examination
What is a Trust Account Examination?
A Trust Account Examination ensures that a law firm is maintaining proper accounting records for its trust accounts, in line with Legal Services Board and Commissioner (LSBC) guidelines. This process verifies that the trust account balances are accurate and that client funds are properly managed.
Why Is Trust Account Examination Important?
A properly examined trust account safeguards your clients’ funds and ensures you comply with regulatory requirements. Non-compliance can lead to penalties and reputational damage. Trust account audits help to:
✅ Ensure accurate records of client funds
✅ Confirm compliance with the Legal Services Regulations
✅ Prevent potential fraud or mismanagement
Our Trust Account Examination Process
We follow a systematic process to thoroughly examine trust accounts:
- Initial Review: Assessment of trust account records
- Compliance Check: Cross-reference records against regulatory standards
- Detailed Examination: Examining deposits, withdrawals, and reconciliations
- Audit Report: Providing a detailed audit report with recommendations
- Final Verification: Ensuring all discrepancies are resolved and the trust account is compliant
Benefits of External Examination
External examinations offer significant advantages to law firms:
✅ Expertise: An external examiner brings specialised knowledge of trust accounting regulations
✅ Impartiality: Objective verification of trust account records without internal bias
✅ Efficiency: Streamlined process that saves time and minimises errors
Legal Requirements for Trust Account Examinations
According to the Legal Services Board and Commissioner (LSBC), law firms must ensure:
✅ Annual examinations of trust accounts
✅ Reporting of findings to LSBC
✅ Timely submission of audit reports for compliance
Why Choose Us for Your Trust Account Examination?
Our team specialises in trust account examinations and offers:
✅ In-depth expertise in law firm trust accounting
✅ Comprehensive audit reports with actionable insights
✅ Efficient and timely services ensuring minimal disruption to your operations