Home Regulated Industries Attorneysʼ Trust Account Attorneys' Trust Account

Attorneys' Trust Account

 

In terms of the Attorneys’ Act, No. 53 of 1979 and the Rules of the Provincial Law Societies, auditors are required to report on their audit of attorneys’ trust accounts within 6 months after financial year end.

 

The revised transitional report, is to be used by Registered Auditors for 2010 financial year ends. The reports are to be submitted to the client firm of attorneys, the relevant Provincial Law Society and the Attorneys’ Fidelity Fund. The Supplementary Schedule of Interest Payments that is included on page 6 of the attached assurance report is NOT subject to the auditor’s assurance engagement and therefore no assurance is expressed on that schedule.

 

Background

 

In 2007 a need was identified to update the then existing auditor’s report for the audit of attorneys’ trust accounts, and a revised report format was issued by the IRBA in August 2007. This revised auditor’s report was not accepted by some of the Provincial Law Societies on the basis that it was not in accordance with the Rules of the respective Law Societies.

 

Recent discussions with the representatives from the Provincial Law Societies and the Joint Attorneys’ and Accountants’ Committee, the Law Society of South Africa and the Attorneys’ Fidelity Fund has enabled consensus to be reached on the format of the attached revised transitional report pending further discussions amongst the parties to consider changes to the engagement, and the update of the current SAICA Guide “SAICA Guidance for Auditors: The Audit of Attorney’s Trust Accounts in terms of the Attorney’s Act, No 53 of 1979 (soon to be withdrawn and replaced by the IRBA guide) and the Applicable Rules of the Provincial Law Societies”.

 

As the process for changes to Rules of the Law Societies ordinarily is lengthy, the Cape Law Society, the Law Society of the Northern Province and Kwa-Zulu Natal Law Society have sought, and obtained, approval from their respective Councils for this transitional arrangement without necessitating a change to their respective Rules regarding the format of the report. The Attorneys’ Fidelity Fund has also expressed its support for the revised transitional report format.

Should you have any further queries, please do not hesitate to contact us.

 

• Attorneys' Trust Account Revised Transitional Report - Issued 8 August 2008 (MS-Word DOC / PDF)