New Practices
Launching your first firm? We ensure your trust account is set up correctly from Day 1 so you pass your first inspection without sweat.
Growing Firms
High transaction volume? We use streamlined tech to audit your accounts without slowing down your fee earners
Established Partners
Need reliability? We provide consistent, low disruption annual audits for large firms requiring absolute accuracy.
The Law Society Audit Deadline is Non-Negotiable
A Solicitor Trust Account Audit is formally known as an External Examination.
As a practising solicitor, you maintain a trust account to safely handle money on behalf of your clients. According to the relevant state-based legislation, you are required to have this account externally examined at least annually.
Now is the perfect time to plan your External Examination with JMK Advisory. We support you and your firm by ensuring strict compliance while providing valuable insights to protect your practice.
Transparent Pricing.
Fixed-Fee Engagement Model
Solicitor Trust Account Audits from $800 + GST
Full compliance review against Law Society regulations
Independent verification of your monthly trust reconciliations
Regulator-ready External Examiner’s Report
Direct lodgement with your Law Society
Note: Complex structures or Controlled Money Accounts may incur additional fees.
From "Stressed" to "Submitted" in 4 Steps
01
Upload
Securely upload your records to our portal
02
Review
We perform the independent examination
03
Report
We draft the Qualified External Examiner’s report
04
Lodge
We submit directly to the Law Society on your behalf
FAQ
Formally referred to as an External Examination, this is a mandatory annual review designed to validate the integrity of your practice's trust records.
While it is a statutory requirement under the Legal Profession Uniform Law, at JMK Advisory, we view it as a critical "health check" for your firm. You manage significant funds on behalf of your clients; our role is to provide the independent assurance that those funds are secure and your reputation is protected.
The examination process involves:
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Verifying Accuracy: Confirming that your trust accounting records are maintained with the precision required by the Law Society.
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Safeguarding Funds: Ensuring there is no loss, deficiency, or irregularity in client monies.
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Assuring Compliance: Validating that your systems and workflows adhere to all strict legal obligations regarding the receipt, holding, and disbursement of trust money.
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Under the relevant state-based legislation , an annual External Examination is mandatory for any practice receiving trust money. It is a non-negotiable requirement for the renewal of your Practising Certificate.
Beyond the statute, these audits provide the independent assurance required by state regulatory bodies. They verify that your firm is maintaining the highest standards of financial integrity, safeguarding both your clients' funds and your professional reputation.
Solicitor Trust Account Audits are a statutory requirement governed by the relevant state based legislation. While specific reporting cycles may vary for individual firms, the standard year end and audit due dates are outlined below.
In accordance with Australian state and territory regulations, Solicitor Trust Account Audits must be conducted by a qualified External Examiner. These individuals must maintain specific professional qualifications and hold formal approval from the relevant regulatory body within their respective jurisdictions
Our examiners possess the technical foundations required to navigate complex trust account regulations across VIC, NSW, QLD, and SA.
Effective preparation is essential for a compliant and efficient audit process. To ensure your records are ready for examination, we recommend adhering to the following operational standards.
1. Maintain Current Records
Ensure all trust account records accurately reflect current transactions. Receipts should be issued immediately upon the clearance of funds, and payments must be recorded in the ledger at the time of the transaction. Timely data entry is the foundation of compliance.
2. Adhere to Reconciliation Deadlines
State regulations require trust accounts to be reconciled within 15 working days of the end of each month. Strictly adhering to this statutory time frame is necessary to identify discrepancies early and prevent potential compliance breaches.
3. Utilise Software Compliance Features
Your practice management system likely contains built-in safeguards. We advise staff to pay attention to these system alerts. If the software flags a potential issue, such as an overdrawn ledger, investigate the matter immediately before proceeding with the transaction.
4. Organise Documentation
Ensure all supporting documentation is retrievable. Please ensure End of Month reports, ADI confirmations, and Authority to Act documents are filed in a secure and logical manner. As many firms now use cloud-based storage, it is also critical to ensure these records are backed up and protected.
5. Internal Compliance Reviews
We recommend implementing a schedule of internal reviews throughout the financial year. A senior staff member should periodically review a sample of files against a compliance checklist to ensure internal procedures are being followed correctly.
6. Staff Training
Staff members responsible for trust accounting must be adequately trained in the relevant state regulations. When the administrative team understands the specific requirements of the legislation, the risk of error is significantly reduced.
Under the relevant state legislation, an External Examiner is authorised to access all records relating to trust money. To ensure a comprehensive review, we typically require access to the following documentation:
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Trust account bank statements
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Trust account bank reconciliation
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Statutory deposit account records (if applicable)
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Statement of trust money
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Trust ledgers
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Trust journals
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Trust transfer journals reports
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Trust receipts
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Duplicate deposit slips
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Trust payments, including by both cheque and electronic funds transfers
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Cash receipts and cash payment reports
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Controlled money bank statements
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Controlled money registers
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Controlled money receipts and payment records
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Transit money registers
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Investment money registers and accounts
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Dormant balances listings with reasoning for aged matters
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Register of open files
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Register of safe custody documents
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Register of powers and estates
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Register of trust money subject to a specific power
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Register of financial interests
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Deficiencies reported to regulatory bodies
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Any other relevant documents that support the transactions in the trust account
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Following our initial planning meeting with management, we provide a schedule of required audit documents for the solicitor trust account audit and confirm the audit dates.
We conduct solicitor trust account audits using either a hybrid or fully remote approach, combining on-site and remote visits as appropriate to minimise disruption to your operations. When electronic information is required, we utilise our secure platform solution to facilitate efficient information transfer, including the capability to upload large files expeditiously.