Managing a solicitor’s trust account is a serious responsibility. The money in these accounts isn’t yours—it belongs to your clients. That’s why the law requires regular audits to ensure everything is handled correctly.
But not just anyone can conduct a trust account audit. You need a qualified, experienced, and registered auditor who understands the legal requirements in Victoria. Picking the right one is crucial, and that’s what we’re here to help with.
Solicitors in Melbourne who handle client funds must follow strict trust accounting rules. A professional audit ensures compliance with the Legal Profession Uniform Law (LPUL) and protects both clients and your practice.
An auditor examines your records, checks for discrepancies, and confirms that you’re handling client money properly. If errors or mismanagement occur, you could face penalties or even risk your practising certificate.
Not every accountant can audit a solicitor’s trust account. In Victoria, auditors must be registered and approved by the Victorian Legal Services Board + Commissioner (VLSB+C).
A qualified auditor should have:
A solid understanding of trust accounting laws.
Experience auditing legal trust accounts.
Registration with the appropriate regulatory bodies.
A reputation for accuracy and attention to detail.
Choosing the wrong auditor can lead to unnecessary stress, missed deadlines, and compliance issues. That’s why it’s important to get this decision right.
When selecting a trust account audit expert, there are a few key things to consider.
First, check their credentials. Make sure they are legally allowed to conduct trust account audits in Victoria. This information is usually available on the VLSB+C website.
Next, consider their experience. A qualified solicitor’s trust account auditor in Melbourne who regularly works with solicitors will know the ins and outs of trust account regulations. They’ll be able to spot issues quickly and guide you through any necessary corrections.
Communication is also important. A good auditor should explain things clearly and answer your questions without making you feel overwhelmed.
Finally, think about their reliability. You need someone who will complete the audit on time and provide accurate reporting. Late submissions can lead to penalties, and errors can cause unnecessary headaches.
Choosing an auditor isn’t just about ticking a box—it’s about making sure your trust account is in good hands. Here are some common mistakes to avoid:
Waiting Until the Last Minute – Audits are due by 31 May each year. Don’t leave it too late to find an auditor.
Picking the Cheapest Option – A low-cost auditor might not have the right experience. You get what you pay for.
Ignoring Their Reputation – Look at reviews, and testimonials, or ask other solicitors for recommendations.
Not Asking Questions – Make sure you understand what they’ll be doing and how they’ll conduct the audit.
Taking the time to choose wisely can save you from a lot of stress down the track.
A trust account audit isn’t just a glance at your books. It’s a detailed process where the auditor checks:
Whether your records match your bank statements.
If transactions are recorded correctly.
Whether client funds are kept separate from business funds.
If you’re following all LPUL requirements.
If they find issues, they’ll report them to you and, in serious cases, to the VLSB+C. That’s why keeping accurate records throughout the year is so important. It makes the audit smoother and reduces the chance of unexpected problems.
Choosing the right auditor for your solicitor’s trust account is an important decision. They ensure compliance, protect your clients’ funds, and help maintain your professional reputation.
Don’t wait until the last minute or settle for the first option you find. Do your research, ask the right questions, and work with an auditor who knows the industry inside out.