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- The firm's trust records must be available for audit at any time
- This means trust records must not be taken off site; not by a bookkeeper, principal of the firm, nor an auditor!
- You must reconcile your trust account within 14 days of the end of the month.
- This means don’t put it off! All computer generated reports are dated, allowing auditors to easily verify if this deadline has been met.
- Never draw a cheque without having first receipted the money into your accounting system.
- If you make a mistake, make it very clear what happened and what you did to fix it. Ensure there are memos filed with the End Of Month Reports indicating the mistake, and the appropriate actions taken to amend it. Mistakes happen, but trying to hide them makes it worse.
Filing of Trust Record - Hard Copy
We recommend the best way to file trust records is to use a lever arch folder, for the trust audit year, 1st April to 31st March.
This file should contain:
- Trust receipts, office copy, filed in strict numerical order
- Trust deposit slips
- Trust end of month reports, with one tab for each month
- A separate tab for the trust account bank statements
Trust Accounting
TODO
Generic Audit Log
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