Trust Audits, sometimes referred to as Law Firm Trust Audits or External Examinations,
are a crucial part of trust accounting.
A Trust External Examiner must be appointed by the Law Practice as soon as a trust account is opened. The Trust External Examiner is required to lodge the Trust Audit by 31 May each year. When an External Examiner’s Report is qualified or an adverse report is made, a copy of the Report is to be forwarded by the external examiner within 7 days to the Chief Trust Account Investigator & Supervisor, Trust Accounts Department of the Law Society.
The report must include an examination of all general trust accounts and accounts where trust money was held (e.g. controlled money accounts, account subject of a power) that have been opened or closed by the law practice during the reporting period.