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On 02/09/2014, you requested the version in force on 02/09/2014 incorporating all amendments published on or before 02/09/2014. The closest version currently available is that of 04/05/2012.
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Duties of accountant
4.
—(1)  For the purpose of giving an accountant’s report, an accountant shall ascertain from the solicitor particulars of all accounts (excluding trust accounts) maintained by the solicitor at any bank or with any approved finance company kept, maintained or operated by the solicitor in connection with his practice at any time during the accounting period to which his report relates and, subject to paragraph (2), make the following examinations of the books, accounts and other relevant documents of the solicitor:
(a)
examine the book-keeping system in every office of the solicitor so as to enable the accountant to verify that such system complies with rule 11 of the Legal Profession (Solicitors’ Accounts) Rules (R 8), and is so designed that —
(i)
an appropriate ledger account is kept for each client;
(ii)
such ledger accounts show separately from other information particulars of all client’s money, conveyancing money and other money received, held or paid on account of each client; and
(iii)
transactions relating to client’s money and any other money dealt with through a client account, and transactions relating to conveyancing money dealt with through a conveyancing account or conveyancing (CPF) account, are recorded in the solicitor’s books so as to distinguish such transactions from transactions relating to any other money received, held or paid by the solicitor;
(b)
make test checks of —
(i)
postings to clients’ ledger accounts from records of receipts and payments of —
(A)
client’s money and any other money dealt with through a client account; and
(B)
conveyancing money dealt with through a conveyancing account or conveyancing (CPF) account; and
(ii)
the costs of each client account, conveyancing account and conveyancing (CPF) account (if any) and of such records;
(c)
compare —
(i)
a sample of lodgments into and payments from a client account (as shown in bank statements) with the solicitor’s records of receipts and payments of client’s money and any other money dealt with through the client account; and
(ii)
a sample of lodgments into and payments from a conveyancing account or conveyancing (CPF) account (as shown in bank statements) with the solicitor’s records of receipts and payments of conveyancing money dealt with through the conveyancing account or conveyancing (CPF) account, as the case may be; and
(d)
enquire into and test check the system of recording costs and of making transfers in respect of costs from each client account, conveyancing account and conveyancing (CPF) account (if any);
(e)
make a test examination of such documents as he shall request the solicitor to produce to him with the object of ascertaining and confirming —
(i)
that the financial transactions, (including those giving rise to transfers from one ledger account to another) evidenced by such documents, are in accordance with the Legal Profession (Solicitors’ Accounts) Rules; and
(ii)
that the entries in clients’ ledger accounts reflect those transactions in a manner complying with the Legal Profession (Solicitors’ Accounts) Rules;
(f)
extract (or check extractions of) balances on the clients’ ledger accounts during the accounting period under review at not fewer than 2 dates selected by the accountant (one of which may be the last day of the accounting period), and at each such date —
(i)
compare the total as shown by such ledger accounts of the liabilities to the clients (including those for whom trust money is held in a client account, or conveyancing money is held in a conveyancing account or conveyancing (CPF) account), with the cash book balances on every client account, conveyancing account, conveyancing (CPF) account (if any), client’s fixed deposit account with a bank or approved finance company (including such a fixed deposit account in which trust money is held) and other fixed deposit account; and
(ii)
reconcile such cash book balances and fixed deposit with confirmations obtained by the accountant direct from the bank or approved finance company;
(g)
satisfy himself that reconciliation statements have been kept in accordance with rule 11(4) of the Legal Profession (Solicitors’ Accounts) Rules (R 8);
(h)
make a test examination of the clients’ ledger accounts in order to ascertain whether the payments made from any client account, conveyancing account or conveyancing (CPF) account in respect of any client are in excess of the money held on behalf of that client in that account;
(i)
peruse such office ledger and cash accounts and bank statements as the solicitor maintains with a view to ascertaining whether —
(i)
any client’s money has not been paid into a client account; or
(ii)
any conveyancing money has not been paid into a conveyancing account or, if paid by the Central Provident Fund Board, into a conveyancing (CPF) account; and
[S 396/2011 wef 01/08/2011]
(j)
ask for such information and explanations as he may require arising out of sub-paragraphs (a) to (i).
(2)  Nothing in paragraph (1) shall require the accountant —
(a)
to extend his enquiries beyond the information contained in the relevant documents relating to any client’s matter produced to him supplemented by such information and explanations as he may obtain from the solicitor;
(b)
to enquire into the stocks, shares, other securities or documents of title held by the solicitor on behalf of his clients; or
(c)
to consider whether the books or accounts of the solicitor have been properly written up in accordance with rule 11 of the Legal Profession (Solicitors’ Accounts) Rules at any time other than the times as at which his examination of those books and accounts takes place.
(3)  If after making an examination under paragraph (1), it appears to the accountant that there is evidence that the Legal Profession (Solicitors’ Accounts) Rules (R 8) have not been complied with, the accountant shall make such further examination as may be necessary in order to complete his report with or without qualification.