The audit of trust accounts and investment procedures is known as to fall within the definition of attest function and therefore is at the mercy of practice review. They however fall outside the definition of Public Interest Entities as dependant on the Practice Review Committee. The methods the following should be seen as a broad format only. For detailed techniques practitioners are described the SAICA Guideline released in June 2004, available on the SAICA website. To acknowledging this engagement Prior, the auditor should assess his professional independence and competence. Understanding of Section 78 of the Attorneys Act No 53 of 1979 and the guidelines of the relevant Provincial Law Society are a pre-requisite. Issue a notice of engagement.
Appendix III of the guideline contains a specimen engagement notice. Obtain a sufficient understanding of the business enterprise and document this. Document considerations of regulations and fraud and error. Perform and document the chance assessment. Pay particular attention to completeness of receipts, validity of payments and exchanges, trust shortages and debit balances.
Assess and document materiality to determine sample size. Document an understanding of the accounting systems and assess the internal settings. Prepare an audit program. Bear in mind the minimum techniques based on the guideline. Agree the opening balance owed to the Provincial Law Society. Verify interest received on trust accounts and Section 78(a) investments. Section 78(2A) investments’ interest is due to your client. Consider the reasonableness of the interest rate. Verify bank or investment company charges paid. Agree payments designed to the Provincial Law Society.
- Trading Technology
- Other systems perform the same functions as IWBs
- Maximum limit for an individual loan or overdraft
- Distribute NRs5 million grant to each Village Development Committee
- High Returns (Super)
At season end time and another date before the 12 months end: – Verify all bank or investment company reconciliations. Determine the validity of reconciling items. Obtain bank or investment company balance certificates for those trust funds. Check that trust funds aren’t significantly less than trust creditors. Add any debit amounts in trust lenders when performing this check back.
Verify an example of trust creditor amounts back to client files. Search for any trust creditors with debit amounts and establish the validity thereof. Ensure an investment mandate is available from each customer. Ensure an effective audit trail is available for all transactions. Ensure the client is supplied with a schedule reflecting all details of the investment. Obtain written representations from the attorney.
Appendix IV of the guide includes a specimen representation notice. Issue a management letter according of the control weaknesses identified. Issue the mandatory report to the Provincial Law Society. Appendix I of the guideline contains a specimen survey. A year The are accountable to the Provincial Law Society is due once, year end within half a year of the close of the financial, August usually on 31. No extensions of the dates to lodge the report are granted.
If the report is not lodged timeously, the specialist may apply for condonation and more often than not will be asked to pay a disciplinary fine. The eye due to the Provincial Law Society must be paid by 31 May. The auditor has a right of access to any records considered necessary release his/her responsibility. If access is denied, it ought to be reported to the Provincial Law Society. You can find additional methods in the guide in respect of MVA/Third party conveyancing and promises.