Current Regulatory Environment
As from 1 December 2014 there are new laws in place that dictate to a large extent how you can run your business. One requirement you will face is that you need to appoint an auditor and have your trust account audited three times a year. Not only do you need to appoint an auditor but the Office of Fair Trading (OFT) expects you and the auditor to inform them of the initial appointment. You need to have informed the OFT of the Auditor appointment within 14 days of opening the trust bank account.
Unless you have just started trading, you need three (3) visits a year from your auditor to be compliant. The auditor also needs to compile and lodge an Audit Report for the year under review. The audit cycle is determined by the issuance date of your licence.
If your auditor fails to show up during the year it is your responsibility to engage a new auditor. If you haven’t seen your auditor for at least five months you must contact them to find out why, and if this cannot be resolved to your satisfaction (that is to say they will come out immediately) then the onus is on you to engage a new auditor who will come out and see you.
What Value Can A Good Auditor Bring?
A good auditor will be able to determine whether you are following the correct procedures or whether at some point in time you have been given some erroneous advice. There are a lot of things that people get wrong (usually on the advice of someone who has been in the business for years) and even though they are not doing anything inherently dishonest, ignorance is no excuse in the eyes of the law.
For business owners who employ other people to manage the trust account in any aspect, an audit is critical to ensure that the trust account is not being abused.
A good auditor will be able to give you ideas on how to make your paperwork easier to manage, how to file things, what to keep on record and how to prepare for the next audit.
They will also show up at least three times a year and give you feedback on how you are doing as they go through the audit process.
Our Experience
Andrea Frost, the Director and Principal of Frost Accounting, is a Chartered Accountant who has been an Auditor for over 8 years and has been working as a real estate trust account auditor since 2011. She knows the previous laws, forms and legal requirements that were covered under the Property Agents and Motor Dealers Act 2000 and is thoroughly familiar with the new AgentsFinancial Administration Act 2014 and the Property Occupations Act 2014.
She also has industry wide contacts with lawyers and management rights consultants should you require assistance with issues such as with selling your property management business, buying a new business or dealing with body corporate committees.
We cover the geographical areas of the Gold Coast and Brisbane.
We have a consistent quality record of managing audits and complying with the laws.
Contact us today for more information.