Trust Account Audit Checklist for Accountants [Free Download]
Running a trust account? Then you already know—when audit time rolls around, things can get stressful fast.
Whether you’re in Sydney, Melbourne, Brisbane, or anywhere else in Australia, trust account audits are a big deal. They’re not just a box to tick. They’re a legal requirement and failing to meet them properly can lead to major headaches.
This guide gives you everything you need to know in one place. From what to prepare, how to stay compliant, and tips to make your life easier—we’ve got your back.
Oh, and yes—we’ve included a free downloadable checklist to make things even simpler. Let’s dive in.
Why Are Trust Account Audits Important?
If you’re a licensed accountant, solicitor, real estate agent, or anyone who manages a trust account, you’re legally required to submit your accounts for audit every year.
Audits help ensure trust money is being handled safely, transparently, and in accordance with state and federal legislation.
Mess it up and you could face fines, license issues—or worse, a Qualified Audit that needs to be reported to your regulator.
Who Needs to Do a Trust Account Audit?
Across Australia, trust account audits apply to a wide range of professionals. You’ll likely need an audit if you:
- Receive or hold money on behalf of others
- Operate a trust account regulated by legislation (like the NSW Fair Trading Act, Legal Profession Uniform Law, or the Property and Stock Agents Act)
The rules are similar Australia-wide, but each state and territory has specific deadlines and procedures. Most audits are due within 2–3 months of EOFY.
What Does an Auditor Look For?
A lot. But don’t panic—we’ve broken it down for you.
Here’s what an auditor typically checks:
- Are your trust records up to date?
- Have you done monthly bank reconciliations?
- Have you held funds in trust correctly, without using them for other purposes?
- Has money been banked and withdrawn within required timeframes?
- Is your trust accounting software compliant?
- Are all receipts, payments, and journals properly documented and sequential?
If you can’t clearly show all of the above—your audit might not go so smoothly.
Trust Account Audit Checklist – What You Must Have
Here’s your essential, no-nonsense checklist to stay fully audit-ready:
Trust Records to Prepare:
- General and individual ledger accounts
- Receipts journal or cashbook
- Payments journal or cashbook
- Monthly bank reconciliations for every month in the financial year
- Bank statements (hard copies or PDFs)
- List of unpresented cheques
- List of unpresented deposits
- Copies of EFT transfers and remittance advices
- Trial balance report
- Journal entries (with clear explanations)
- List of account adjustments
Make sure everything is neat, complete, and backed up. If you’re using trust accounting software, be ready to pull out reports and receipts upon request.
Extra Things Auditors Look At
- Are there any dormant transactions?
- Has the trust account balance ever gone negative?
- Were statements of accounts sent as required?
- Has the licensee or principal signed off on records within the right timeframe?
- Is there a clean, logical audit trail?
These might seem small, but they can make or break your audit result.
How to Prepare (Without Losing Your Mind)
- Keep records clean all year round. Waiting until EOFY is a trap.
- Do monthly reconciliations and review reports regularly.
- Back up everything—software, receipts, emails, EFT confirmations.
- Know your obligations based on your profession and your state.
- Use compliant accounting software (and update it when needed).
Don’t Forget About the Trust Deed (If You’re Starting Fresh)
If you’re setting up a new trust account, here’s what you’ll need:
- Full Trust Deed (including any amendments)
- ABN or ARSN (if registered)
- Names and IDs for all trustees and beneficiaries
- Settlor’s name
- Country and date the trust was established
- Identification under AML/CTF laws
- FATCA/CRS declarations (especially if anyone is a foreign tax resident)
Banks and regulators will ask for these details. Have them ready to avoid delays.
What Happens If You Fail the Audit?
A failed or “qualified” audit must be reported to the regulatory authority in your state. That could mean:
- Investigations
- Penalties or fines
- Suspension or cancellation of your license
It’s not something you want on your record. Better to prepare well and breeze through it.
How Number Solutions Can Help
At Number Solutions, we make trust account audits simple.
We don’t just tick boxes—we guide you through the whole process, from start to finish. Whether it’s preparing documents, spotting red flags early, or ensuring your software is compliant, our expert team is here to make your life easier.
We work with professionals across Australia. So whether you’re in NSW, VIC, QLD or WA, we’ve got you covered.
Want peace of mind and fewer audit headaches? Contact us today and let’s make this year’s audit your easiest one yet.
Conclusion
Trust account audits can feel overwhelming—but they don’t have to be.
When you’ve got the right tools, a clear checklist, and some expert support behind you, it becomes a much smoother process. No more last-minute stress, missing documents, or unexpected surprises.
Just stay organised, keep your records tidy all year, and stay on top of the rules that apply to your profession and state.
Need a head start? Download free trust account audit checklist now and take the guesswork out of audit time.
Check Our Trust Account Audit Services:
FAQ
Q: How often do I need to audit a trust account?
A: Most audits are annual and due within 2–3 months of the end of the financial year, depending on your state.
Q: Can I do the audit myself?
A: No. Trust account audits must be carried out by a qualified and registered auditor.
Q: What if I don’t hold any money in trust during the year?
A: You may still need to submit a statutory declaration or audit exemption form—rules vary by state.
Q: Is there a penalty for a late audit?
A: Yes. Late submissions can lead to fines, disciplinary action, or a qualified audit report.
Q: I’m using software to manage trust accounts—is that enough?
A: Only if it’s compliant with state regulations and used properly. Software won’t save you if the data inside is wrong.
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