Trust Accounts Act 1973

A trustee must, for each financial period for the trustee and within 2 months after the end of the financial period—

ensure the trustee’s auditor audits the accounting and other records and the trust accounts kept by the trustee under this Act; and

give to the supervising entity an auditor’s report containing the information prescribed under a regulation.

However, if the supervising entity is satisfied, on the trustee’s written application, there are special reasons for extending the time for compliance with subsection (1)(b), the supervising entity may approve an extension, of not more than 3 months, of the time for compliance with the subsection.

The supervising entity may approve the extension on conditions stated in the approval.

When in respect of a financial period the accounting and other records and the trust accounts of a trustee, referred to in subsection (1) (the accounts) are produced to the auditor to enable an audit thereof to be made for the purposes of this section, such accounts shall be accompanied by a statement signed by the trustee and, where the trustee carries on practice or business in partnership, every other member of the firm stating—

whether the accounts are true and correct; and

whether all moneys received by the trustee or the firm, as the case may be, during the financial period in question and which constitute trust moneys have been lodged to the credit of a trust account kept under this Act at a financial institution (designating the financial institution and the office or branch thereof) and disclosed to the auditor for the purposes of the audit; and

whether the moneys referred to in paragraph (b) have been applied for the purposes for which they were so received and in accordance with the Act or are still retained in a trust account referred to in that paragraph.

Where the matters set out in a statement made for the purposes of subsection (4) are not within the trustee’s own knowledge, the trustee shall, before signing the statement, take all reasonable steps to ascertain whether the facts and matters set out in the statement are true and correct.

Every trustee who in a statement made for the purposes of subsection (4) makes a statement false in a material particular knowing it to be false is guilty of an offence.Maximum penalty—200 penalty units or 1 year’s imprisonment.

Every auditor shall have a right of access at all times to the accounting and other records of the trustee kept by the trustee in pursuance of section 6 including all files containing information supporting or relevant to entries in the accounts the subject of the audit and to any books, accounts, cheques or other records relating to an account designated or evidenced as a trust account of the trustee established and kept at any bank and shall be entitled to require from the trustee and where the trustee carries on practice or business in partnership, any of the members of the partnership and any of the trustee’s employees or agents and, where the trustee carries on practice or business in partnership, any of the firm’s employees or agents such explanation and information as the trustee desires for the audit or unannounced examination.

Where an auditor is of opinion that, to enable the auditor to properly carry out the audit of the accounting and other records and the trust accounts referred to in subsection (1) or an unannounced examination under section 18, it is necessary or desirable that the auditor should be permitted to examine any other books, accounts or records relating to the practice or business of the trustee or where the trustee carries on practice or business in partnership, of the firm, the auditor may require the trustee, and where the trustee carries on practice or business in partnership, the other members of the partnership, to produce for the auditor’s examination such other books, accounts or records.

The auditor shall forthwith furnish to the supervising entity a report in writing with respect to—

any refusal or failure by the trustee to comply with the auditor’s requirements under subsection (7) or (8) or the regulations; or

any refusal or failure by any person without lawful justification to allow the auditor access to any accounting or other records of the trustee to which the auditor has right of access or to give any information possessed by the person as and when required by the auditor pursuant to subsection (7) or the regulations or where the auditor is otherwise hindered, obstructed or delayed in the performance of the auditor’s duties or the exercise of the auditor’s powers.

Every auditor shall in the conduct of the auditor’s audit or examination for the purposes of this Act have due regard to such auditing procedures and standards (if any) as may be prescribed in relation to the audit or, as the case may be, unannounced examination of accounting and other records and trust accounts under this Act.

If an auditor departs from the prescribed auditing procedures or standards in the conduct of the audit or, as the case may be, unannounced examination the auditor shall state the extent of such departure in the auditor’s report or statement for the purposes of this Act on the audit or, as the case may be, examination and the auditor’s reasons for so doing.Maximum penalty—50 penalty units.