Real Estate Trust Audits
A Real Estate Agent is required by the Legislation of the NSW Fair Trading, to obtain an
Auditors Report for all
Trust Monies held in trust on behalf of a third party for which there is no present entitlement
The Real Estate Industry, represents an area where the regulatory bodies of NSW has specific reporting requirements.
Licensees required to formally notify Fair Trading each time they open a
Trust Account and, must supply Fair Trading a copy of the form they currently provide to the Institution.
Our Services will ensure that the Real Estate Agent:
- Complies with the Legislation in all material aspects with measured suitable criteria including assertions
- Make awareness of all Material deficiencies identified
- Has considered Materiality and Compliance Risks on money held on behalf of a third party
- Understands the concept of Trust Money and the Trust Account Financial Records requirements
- Understands that a Qualified Auditor Report can be issued in the following circumstances:
- A discovery by the auditor of a breach of the Act or Regulation
- Any Discrepancy relating to the trust audit
- Failure to keep records in a manner to enable them to be properly audited
The Legislations has also, specific requirements in relation to
Unclaimed Trust Money.
Our Advice will provide the Real Estate Agent with the insights of:
- Unclaimed Trust Money transfers
- Unclaimed monies held for more than 2 years in a trust account
- Responsibilities with the Office of State Revenue regarding Unclaimed monies
Other considerations such as Reconciliations, Breaches and Subsequent Events are also part of our Audit procedure and they are elements to be discussed with the client.