South Australian Current Regulations

SECURITY AND INVESTIGATION INDUSTRY REGULATIONS 2011 - REG 38

38—Requirements of audit

        (1)         In carrying out an audit, the auditor must—

            (a)         make checks that will enable the auditor to give an opinion as to whether the agent has, during the period covered by the audit, complied with these regulations relating to the agent's accounts and records; and

            (b)         ascertain whether a trust account under these regulations was kept by the agent during that period; and

            (c)         make a general test examination of any trust account kept by the agent and of the pass books and statements relating to any such account during that period; and

            (d)         make a comparison as to no fewer than 2 dates (1 to be the last day of the period of the audit and 1 other to be a date within that period selected by the auditor) between—

                  (i)         the liabilities of the agent to the agent's clients as shown by the agent's trust ledger accounts and the records kept under these regulations; and

                  (ii)         the aggregate of the balances standing to the credit of the agent's trust account; and

            (e)         ask for such information and explanations as the auditor may require for the purposes of this regulation.

        (2)         The statement prepared by the auditor for lodging with the Commissioner must set out all matters relating to the agent's accounts and records that should, in the auditor's opinion, be communicated to the Commissioner and, in particular, deal with each of the following matters:

            (a)         whether the accounts and records appear to have been kept regularly and properly written up at all times;

            (b)         whether the accounts and records have been ready for examination at the periods appointed by the auditor;

            (c)         whether the agent has complied with the auditor's requirements;

            (d)         whether, at any time during the period of the audit, the agent's trust account was overdrawn and, if so, the full explanation for that given by the agent;

            (e)         whether the agent has, or has had, any debit balances in his or her trust account and the explanation or reason for such a debit given by the agent;

            (f)         whether the auditor has received and examined the notice given to the auditor under regulation 37 and the result of that examination;

            (g)         if the agent uses a computer program to keep the agent's accounts and records—whether the program allows for the accounts and records to be conveniently and properly audited.

        (3)         The statement prepared by the auditor for lodging with the Commissioner must include the name, number and relevant BSB number of each trust account included in the audit.

        (4)         The auditor must give a signed copy of the statement to the agent.

        (5)         If the auditor in the course of auditing the agent's accounts and records discovers—

            (a)         that they are not kept in a manner that enables them to be properly audited; or

            (b)         a matter that appears to the auditor to involve dishonesty or a breach of the law by the agent; or

            (c)         a loss or deficiency of trust money or a failure to pay or account for trust money; or

            (d)         a failure to comply with this Part,

the auditor must, as soon as possible, give a report in respect of the discovery to the Commissioner and the agent concerned.

Maximum penalty: $2 500.

        (6)         Subregulations (2) and (5)(c) do not apply in relation to losses and deficiencies in a trust account that have been promptly rectified and were due to inadvertence (provided that the total of the losses and deficiencies have not exceeded $100 in any 3 month period).