Trust accounts

Key Points

• Members in practice who receive and/or hold client monies on the client's behalf are required to maintain a trust account
• Members are required to have their compliance with these requirements subjected to an annual audit
• The new standard dealing with client monies extends to situations where a member is a signatory to a client's bank account.

Applicable Standard

The Accounting Professional and Ethical Standards Board (APESB) issued APES 310 Dealing with Client Monies with has effect from 1 July 2011. It replaced the previous standard APS 10 and its associated guidance note GN3.

The standard updates and explains the requirements of members in public practice who deal with client monies, whether through the operation of a trust account or as a signatory to a client’s bank account. 

APES 310 requires a member who holds or receives client monies to:

• Establish and maintain trust account/s and to keep appropriate trust account records
• Ensure there are adequate internal control safeguards and procedures in place
• Cause the member's compliance with the requirements of the standard to be audited annually.

APES 310 is available in the Members' Handbook.

Former obligations

The former obligations that applied to members' operation of trust accounts prior to 1 July 2011 were contained in Miscellaneous Professional Statement APS 10 Trust Accounts. Guidance Note GN3 Operation of Trust Accounts provided guidance on the application of APS 10. For access to these documents, contact the Institute's Knowledge Centre. 

Article last updated 18 January 2012