Role of Accountant
The Accountant's Role
Every year a lawyer who such handles client's money is used to created to the Law Society of US a report through a qualified accountant such he has complied along with the rules in the advocate's act. This report is needed once every year, although, a complete audit is not needed nor is there a requirement for the preparation of the loss and profit account or balance sheet. For the reason of giving his report the accountant must:
1. Ascertain from the lawyer specifically of all bank accounts operated or kept through the lawyer in connection along with his practice.
2. Examine the book remaining system in every office of the lawyer to see such the system complies along with the following requirements as:
- In which there is a ledger account for each client
- The ledger accounts exposed separately particulars of all client money obtained, paid or held on account of each client
- In the lawyers books, transactions relating to clients money are recorded like to differentiate them from transactions relating to any another monies
- Test check postings to client's ledger accounts from records of payments and receipts of client's money
- Create test checks of casts of that accounts
- Compare a sample of payments and lodgements as exposed in the bank statement along with the lawyer's records of payments and receipts of client's monies
- Enquire into and test check whether the system of recording costs and of creating withdrawals in respect of costs from the client account
- Satisfy himself through test examination such financial transactions are in accordance along with the rules and which any entries in ledger accounts reflect the transaction in a manner such complies along with the rules
- Extract all client's ledger balances at any rate two dates in the year and reconcile the cash book balance along with that confirmed direct to the accountant through the bank
- Make test examination to ascertain if payments from client account have been created on any individual account in excess of the money held on behalf of such client
- Peruse the office bank statements, cash accounts and ledger to see where client cash has not been paid into a client account.