Accountant's Trust Account Audit VIC
A Modified Audit Report Gives You 15 Business Days to Notify Your Professional Body. Are You Prepared for That Conversation?
If your accounting practice in Victoria holds or receives money on behalf of clients, whether that is tax refunds, settlement proceeds, or any other client funds, you are legally required to have that account independently audited every year.
APES 310 Client Monies sets out mandatory requirements and guidance for members in public practice who deal with client monies or who act as an auditor of client monies. This standard is enforced by CPA Australia, Chartered Accountants Australia and New Zealand (CA ANZ), and the Institute of Public Accountants (IPA), and applies to every member in public practice across Victoria, from Melbourne CBD and Carlton to Geelong, Ballarat, Bendigo, and beyond.
Non-compliance is not treated as an administrative oversight. It is a breach of professional standards that can trigger a disciplinary referral, mandatory reporting, and in serious cases, the loss of your Public Practising Certificate.
At Number Solutions Tax & Accounting, we specialise in accounting trust account audits across all of Victoria. We understand what APES 310 requires, how the audit period rules work, and how to deliver a compliant assurance engagement that protects your practice and your clients.
Time and Deadline for Submitting Your Accountant's Trust Account Audit VIC
Annual Audit Requirement
Victorian accountants who operate a trust account are required to comply with APES 310 Dealing with Client Monies and have their trust accounts examined by an approved auditor annually. The applicable year-end date is 31 March for accounts opened pre 1 July 2011, or 12 months from the month the account was opened for newer accounts.
Audit Completion Deadline
Australian accountants operating trust accounts must comply with APES 310 Dealing with Client Monies, requiring annual audits within 3 months of the applicable year-end date. For a 31 March year-end, this means the assurance engagement must be completed by 30 June each year.
Lodgement of Reports
Unmodified audit reports are not required to be lodged with Consumer Affairs Victoria or your professional body. However, they must be retained and may be reviewed as part of your professional body’s Best Practice Program at any time.
Modified Reports Trigger Immediate Action
A copy of a modified auditor’s report must be forwarded by the auditor to the General Manager, Professional Conduct at CPA Australia within 15 business days of the completion of the assurance engagement. Although unmodified reports are not required to be lodged, they must be maintained and may be reviewed as part of the Best Practice Program.
The same 15 business day lodgement obligation applies for CA ANZ and IPA members under the equivalent professional standards. This is a non-negotiable requirement. Missing it is itself a disciplinary breach.
Deficiency Reporting
If a deficiency in client monies is discovered at any point during the year, not just during the annual audit, you must notify your professional body within five business days of becoming aware of it. This obligation exists independently of the annual audit cycle.
Auditor Appointment Notification
You must notify your professional body of your appointed auditor’s membership details within 20 business days of making the appointment. If you change auditors, the same notification requirement applies.
The Revised APES 310 Standard (Effective April 2025)
The revised standard is effective for engagements commencing on or after 1 April 2025. The October 2024 revision introduced updated requirements around auditor obligations, modified report lodgement, and deficiency notifications. If your annual engagement commences after 1 April 2025, the revised standard applies in full to your audit.
We help Victorian accounting practices stay compliant and audit-ready with an affordable, independent APES 310 assurance engagement.
- Dedicated client monies audit for VIC accounting firms
- Fast turnaround before your annual completion deadline
- Clear, practical fixes explained in plain language
What APES 310 Actually Covers in Your Annual Audit
Many Victorian accounting practices underestimate the scope of what an APES 310 assurance engagement actually examines. The accountants’ trust account audit involves various facets in accordance with APES 310. This includes auditing internal controls, audit of documentation, managing of the trust account, record keeping, dealing with disbursements, notification to clients, and other standardised conditions.
More specifically, your auditor will assess compliance across these areas:
- Segregation of client monies: All client funds must be held in a dedicated trust or client bank account, completely separate from the practice’s own operating funds.
- Client instructions and authorisation: Every receipt and disbursement of client money must be supported by documented client instructions or agreement.
- Receipt and disbursement timeframes: Client funds must be receipted and disbursed within three business days of the relevant instruction or receipt.
- Notification to clients: Clients must be notified promptly when their monies are received and when they are disbursed.
- Record keeping accuracy: All ledger entries, receipt records, and reconciliation documents must be complete, accurate, and maintained in a retrievable format.
- Prohibition on fees from trust: The fee for the audit cannot be paid from the member’s or the accountants’ trust account and is instead a cost to the business. This also extends to professional fees generally. Funds cannot be drawn from the trust account for the practice’s own benefit without proper authorisation and disbursement procedures.
- Conflicts of interest: Your auditor must assess whether any conflicts of interest arising under APES 110 Code of Ethics have been properly managed in relation to client monies.
Why Victorian Accounting Practices Choose Number Solutions for Their APES 310 Audit
Accounting practices from Melbourne’s CBD and inner suburbs like Fitzroy, Richmond, and South Yarra to Dandenong, Frankston, Geelong, Ballarat, and Bendigo trust Number Solutions to deliver their annual client monies assurance engagement.
Expert Knowledge of APES 310 Requirements
We understand the APES 310 standard in full, including the October 2024 revisions that take effect for engagements commencing on or after 1 April 2025. You get an auditor who understands every obligation under the standard, not just the basic compliance checklist.
Qualified and Independent Auditors
Members who hold a certificate of public practice of IPA, CPA, and CA ANZ can undertake a trust account audit for another accountant. Our team holds all required qualifications and maintains strict independence from the practices we audit. You receive a fully compliant, independent assurance engagement every time.
Affordable and Transparent Service
We offer clear, upfront pricing with no hidden fees. Whether you are a sole practitioner in Coburg or a multi-partner firm in the Melbourne CBD, our pricing is designed to suit your practice size and transaction volumes.
Fast Turnaround
We understand that your three-month deadline from year-end is fixed. We complete your assurance engagement efficiently and deliver your report well before the completion deadline, leaving no risk of an overdue audit.
Clear, Jargon-Free Reports
After every engagement, you receive a straightforward assurance report covering all findings and any practical recommendations. If the report is unmodified, you get confirmation quickly. If there are issues, we help you address them immediately and guide you through any required notification steps.
Remote Service Across All of Victoria
We work with accounting practices across all of Victoria entirely remotely. You do not need to be in metropolitan Melbourne to access our services. We serve practices across regional Victoria, including Geelong, Ballarat, Bendigo, Shepparton, Albury-Wodonga, and Warrnambool.
Key Requirements for Accountant Trust Account Auditing in VIC
Understanding your obligations under APES 310 prepares your practice for a smooth, compliant annual engagement. Here is what every Victorian accounting practice needs to know:
- Annual Assurance Engagement: Every member in public practice who deals with client monies must arrange an independent annual assurance engagement. This must be completed within three months of your applicable year-end date.
- Year-End Date: For accounts opened before 1 July 2011, the year-end is 31 March. For accounts opened after that date, the year-end is 12 months from the month the account was opened. Contact your professional body if you are unsure of your specific year-end date.
- Auditor Independence: Your auditor must be genuinely independent and must not be involved in the management or day-to-day administration of your trust account or client monies.
- Qualified Auditor: Your auditor must hold a current Public Practising Certificate and be a member of IPA, CPA Australia, or CA ANZ, or hold registration as a company auditor under the Corporations Act 2001.
- Auditor Appointment Notification: You must notify your professional body of your auditor’s details within 20 business days of appointment and similarly advise them of any change in auditor.
- Record Retention: All audit reports, working papers, and client monies records must be retained securely. Unmodified audit reports must be maintained and may be reviewed during your professional body’s Best Practice Program inspections at any time.
- Deficiency Notification: Any deficiency in client monies must be reported to your professional body within five business days of you becoming aware of it, regardless of whether it is discovered during the annual audit or at any other time during the year.
What Documents Your Auditor Will Need Access To
For a complete APES 310 assurance engagement, you will need to provide:
- Client bank account or trust account bank statements for the full audit period
- All receipts and disbursement records for client monies
- Client ledger entries for the audit period
- Account reconciliation records
- Client instructions or agreements authorising transactions
- Prior audit reports and any professional body correspondence relating to the client monies account
- Records of any notifications provided to clients about their monies
We guide you through preparing every document from the beginning, so the engagement runs efficiently and nothing is missed.
Not Sure Where to Start for Your Accountant's Trust Account Audit in VIC?
Whether you are preparing for your first annual audit, catching up after a missed engagement, or transitioning to the revised APES 310 standard that takes effect in April 2025, we are here to give you clear, practical answers.
We serve practices across Melbourne, Geelong, Ballarat, Bendigo, Dandenong, Frankston, Ringwood, Box Hill, Sunshine, Footscray, and all of regional Victoria.
FAQs
Yes, if your practice receives or holds money on behalf of clients, you are required to comply with APES 310 Client Monies and arrange an annual assurance engagement by a qualified, independent auditor. This obligation applies to all members in public practice who are members of CPA Australia, CA ANZ, or the IPA. A typical example is an accounting practice that receives ATO tax refunds on behalf of clients, collects professional fees from those refunds, and remits the balance to clients. If your practice operates this type of arrangement, the annual audit obligation applies.
The annual assurance engagement must be completed within three months of your applicable year-end date. For practices with accounts opened before 1 July 2011, the year-end is 31 March and the engagement must be completed by 30 June. For accounts opened after 1 July 2011, the year-end is 12 months from the month the account was first opened. If you are unsure of your specific year-end date, contact your professional body directly or call us, and we will help you confirm it.
A modified opinion means your auditor identified material non-compliance with the APES 310 requirements. When this occurs, your auditor is required to forward the modified report to the General Manager of Professional Conduct at your professional body (CPA Australia, CA ANZ, or IPA) within 15 business days of completing the engagement. Your professional body may then commence a review or disciplinary process. This is why it is important to identify and address any compliance weaknesses before the audit begins rather than after. Our team helps you review your records and resolve issues before the formal engagement starts.
No. Your auditor must be genuinely independent. This means the person or firm conducting your APES 310 assurance engagement cannot be the same individual or firm that manages your day-to-day accounting, tax work, or trust account administration. They must hold a current Public Practising Certificate and be a member of IPA, CPA Australia, or CA ANZ. Using a non-independent auditor is itself a breach of APES 310 and could result in a disciplinary referral if identified during a professional body review.
Yes. We conduct APES 310 assurance engagements entirely remotely for accounting practices across all of Victoria. You provide your records securely, and we complete the full engagement without requiring an in-person visit. This makes our services equally accessible to sole practitioners in regional areas such as Ballarat, Bendigo, Shepparton, and Warrnambool as they are for larger firms in Melbourne’s CBD and inner suburbs. Remote delivery does not affect the quality or independence of the engagement.
