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Rules of Practice 1994 (S.R. 1994, No. 229)
|Requested: 28 Jun 2017|
|Consolidated as at: 17 Mar 2006|
(1) A trust account inspector is to carry out an examination, at least once in every 12 month period, of each legal practitioner who holds a practising certificate.
(2) An examination is to consist of the following:
(a) an examination of the book-keeping system in each place of business of the legal practitioner to determine whether or not the system complies with the requirements of this Part;
(b) a check of a sample of postings to each trust ledger from records of receipts and payments of clients' money;
(c) a check of the arithmetical accuracy of those records;
(d) a comparison of a sample of lodgements into, and payments from, the trust account, as shown in bank statements, with the records of receipts and payments of clients' money;
(e) a check of the system of recording costs and making withdrawals in respect of costs from the trust account;
(f) a sample of transactions recorded in each trust ledger during the accounting period in order to ascertain
(i) whether the entries relating to those transactions are in accordance with the rights of each client as those rights appear to the trust account inspector from the documents held by the legal practitioner; and
(ii) whether the accounting has been carried out in accordance with this Part;
(g) a check of the extraction of balances of the trust ledger accounts at any one date during the accounting period including
(i) a check of the additions of the extraction of balances; and
(ii) a check of the reconciliation of the total of the balance with the balance shown in the bank statement; and
(iii) a check that any amount shown in the reconciliation as being money in hand was promptly deposited; and
(iv) direct confirmation with the bank concerned of the accuracy of the bank balance used in the reconciliation;
(h) a check that, as at the date chosen for the check of the extraction of balances and the check of the reconciliation, the total of any debit balances in the trust ledger account was covered in accordance with rule 37;
(i) a check of some money taken to the credit of the office account of the legal practitioner to ascertain that the credit was not money which should have been credited to a client's trust account;
(j) an inquiry into the amount on deposit with the Trust.
(3) A trust account inspector may carry out an approved inspection of a legal practitioner's affairs if the inspection relates to the operation of that legal practitioner's trust bank account.
(4) The Council may fix and impose a scale of fees for an examination.
(5) A trust account inspector may carry out an examination in the presence of a legal practitioner appointed by the Council under subrule (6).
(6) The Council may appoint a legal practitioner to be present at an examination.