Accountant’s Trust Account Audits

• Do you always have to file an audit report?
• Who can complete the audit?
• Penalties and offences

Do you always have to file an audit report?

All members of the Institute of Chartered Accountants in Australia and CPA Australia are required to have their trust accounts examined by an approved auditor at least annually, if you are entrusted with money in the course of your practice on behalf of a client, and you are a member or affiliate in public practice or act as an investment adviser. This is also in accordance with Institute of Chartered Accountants in Australia – APS 10, Trust Accounts.

Who can complete the audit?

The auditor must be a member of the Institute of Chartered Accountants in Australia or CPA Australia, and hold a Certificate of Public Practice and have adequate training, experience and competence in auditing.

Michael Quinn is a certified auditor by the Australian Institute of Chartered Accountants. Thereby Quinns can undertake the audit, in accordance with the applicable Australian Auditing Standards, on your behalf, with the exception of below, if applicable.

An Auditor is disqualified from accepting or continuing with an audit of another Member’s Trust Bank Account where:

(a) the Auditor is, or at any time within two (2) years before appointment has been, an employee or partner of the Member; or

(b) the Auditor has, or had at any time within two (2) years before appointment, any material financial interest in any enterprise, corporation or business with the Member pursuant to Professional Statement F.1″Professional Independence”; or

(c) the other Member audits the Member’s Trust Bank Account; or

(d) where it may be considered that independence may be or may appear to be impaired, pursuant to Professional Statement F.1 “Professional Independence”.

Penalties and offences

Should you be unable to have the audit completed within the required time frame it is expected that you would advise the Institute of Chartered Accountants in Australia (ICAA). The resultant action taken is dependent on the circumstances surrounding the delay. The ICAA response may vary as widely as simply acknowledgement in writing to disciplinary proceedings.

If there is a reported breach, then the action taken is firstly dependent on the nature of the breach, amount of deficiency, if any, and the rectifying action taken by the member. The ICAA response may vary as widely as simple acknowledgement in writing of the issue and its rectification to disciplinary proceedings.

In the instances of penalties and offences, the primary focus is to ensure resolution of the issues as soon as possible, in accordance with maintenance of the ongoing requirements.

Our dedicated team can assist you with Accountant Trust Audits and other Auditing needs. Complete and submit the Express Enquiry form on the top right hand side of this page and we will contact you to discuss your enquiry or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment.