Audit & assurance
Solicitors' trust account external examinations
External examinations of law practice trust records under the Legal Profession Uniform Law, lodged with the Law Society of NSW.
A law practice in New South Wales that received or held trust money during the trust year must have its trust records externally examined and the report lodged with the Law Society of NSW by 31 May. The examination is governed by the Legal Profession Uniform Law (NSW) and the Legal Profession Uniform General Rules, and may only be performed by an external examiner who meets the eligibility requirements and has completed approved training.
What the engagement covers
Examination of trust records
We examine the trust receipts and payments records, trust ledgers, the trust account cash book, reconciliations, controlled money records and the register of investments — testing whether trust money has been received, held, disbursed and recorded in accordance with the Uniform Law and General Rules.
Reconciliation and deficiency testing
We test monthly trust reconciliations, ledger balances and the treatment of any deficiency, overdrawn ledger or unclaimed money, and check that statements of account have been provided to clients.
Lodgement with the Law Society
We complete and lodge the External Examiner's Report so the practice meets the 31 May deadline, and raise any qualification with you well before it is filed.
Practical remediation advice
Where we find a breach, you get specific guidance on how to fix the process — not just a note that it happened. Most trust breaches we see are recording and timing failures, not misappropriation, and they are straightforward to prevent.
Who this is for
Typical clients: Solicitors' Trust Account Audit
- Sole practitioners and small law firms holding general trust money
- Multi-partner practices with controlled money, transit money or power money
- Practices operating a controlled money account or investing trust money at a client's direction
- New practices completing their first trust year
- Practices that have closed a trust account and need a final examination
Solicitors' Trust Account Audit — common questions
We only held trust money for part of the year — do we still need an examination?
Yes. The obligation is triggered by receiving or holding trust money at any point during the trust year, not by holding it at year end. A practice that opened and closed a trust account mid-year still requires an examination.
What happens if we lodge after 31 May?
Late lodgement is a compliance matter the Law Society follows up, and it can affect your practising certificate renewal. If you are approaching the deadline, contact us early — the examination itself is usually not the bottleneck, gathering records is.
Can our regular accountant do the external examination?
Only if they meet the eligibility requirements under the Uniform Law and have completed the approved external examiner training. Being a chartered accountant is not by itself sufficient.
What if the examination finds a breach?
The report is qualified and the breach is disclosed. That is not automatically a disciplinary outcome — the Law Society is far more concerned with practices that conceal issues than with those that identify and correct them. We will work through the correction with you before the report is lodged.
Also from our audit practice
Other audit services
External / Statutory Audit
Independent financial statement audits for companies, not-for-profits, charities and grant recipients.
SMSF Audit
Independent financial and compliance audits of self-managed super funds under the SIS Act.
Real Estate Trust Account Audit
Trust account audits for real estate agents, property and strata managers and conveyancers, lodged with NSW Fair Trading.
Need a quote or a second opinion?
Tell us the entity, the deadline and the type of audit. You will have a fixed-fee proposal back quickly — usually the same day.