Document ID: chunk:federal_register_of_legislation:F2023C00203:clause:6_41:p1
Version: federal_register_of_legislation:F2023C00203
Segment Type: clause
Provision Reference: sch 6 cl 41 (pt 1/2)
Character Range: 105352–107961

41  Audit of trust accounts—section 126
 (1) For the purposes of paragraph 126(1)(a), the audit period in respect of which a manager must have the accounts and records audited is a financial year.
 (2) In carrying out an audit, the auditor must:
 (a) make checks that will enable the auditor to give an opinion as to whether the manager has, during the period covered by the audit, complied with this Act relating to the manager's accounts and records; and
 (b) ascertain what trust accounts were kept by the manager during that period; and
 (c) make a general test examination of any trust account kept by the manager and of the passbooks and statements relating to any such account during that period; and
 (d) make a comparison as to no fewer than 2 dates (1 to be the last day of the period of the audit and 1 other to be a date within that period selected by the auditor) between:
 (i) the liabilities of the manager to the manager's clients as shown by the manager's trust ledger accounts and the records kept under this Schedule; and
 (ii) the aggregate of the balances standing to the credit of the manager's trust account; and
 (e) ask for such information and explanations as the auditor may require for the purposes of this clause.
 (3) For the purposes of paragraph 126(1)(b), the statement relating to the audit must be prepared by the auditor and must include all matters relating to the manager's accounts and records that should, in the auditor's opinion, be communicated to the body corporate and, in particular, deal with each of the following matters:
 (a) whether the accounts and records appear to have been kept regularly and properly written up at all times;
 (b) whether the accounts and records have been ready for examination at the periods appointed by the auditor;
 (c) whether the manager has complied with the auditor's requirements;
 (d) whether, at any time during the period of the audit, the manager's trust account was overdrawn and, if so, the full explanation for that given by the manager;
 (e) whether the manager has, or has had, any debit balances in his or her trust account and the explanation or reason for such a debit given by the manager;
 (f) whether the auditor has received and examined the notice given to the auditor under clause 42 and the result of that examination;
 (g) if the manager uses a computer program to keep the manager's accounts and records, whether the program allows for the accounts and records to be conveniently and properly audited.
 (4) The auditor must attach to the auditor's statement a copy of the manager's notice delivered to the