Get AU Independent Assurance Report To The Licensed Estate Agent 2020-2023

1) identify the scope of the trust audit; 2) describe the agreed-upon procedures performed; 3) identify the number, type and dollar volume of accounts examined; 4) indicate the results of the audit procedures performed with any exceptions noted; and 5) report on department internal control weaknesses identified, as the ...

The auditor will need: All trust account statements for the reporting period. Trust account deposit books. Trust account receipt books. Trust account cheque butts or details of electronic funds transfers. Cash book (details of daily receipt and payment transactions) – manual and computer systems.

The purpose of a trust account audit is to report on whether the records relating to trust monies have been properly kept, whether there are any discrepancies in trust monies and whether the trust account is compliant with legislation. Failure to comply can result in hefty penalties and even loss of licence.

Auditing of Accounts So when the total income coming from the trust is getting above the threshold limit of non-taxable income, as defined in the Income Tax Act, of 1961, the private trust must audit all its accounts with the help of a Chartered Accountant.

Even though the income of a Trust may be exempt, if the turnover of Trust in business exceeds Rs 1 crore, Trust is required to get its accounts audited under section 44AB.

An external audit helps to detect any fraud or errors on an annual basis. Any fraud or error found is reported directly to the relevant State department. The State department will rely on the audit report to determine whether a licence can be granted or renewed.

Under the Act, the records of any trust money held by conveyancers must be audited.

Improper handling of a trust account can lead to an ethics violation, and many states conduct random audits.