Let’s be honest—trust account audits aren’t exactly the highlight of an accountant’s year.
They can be fiddly, time-consuming, and occasionally frustrating. But they’re also a non-negotiable part of staying compliant if you or your clients hold money on behalf of others.
To help clear up some confusion, we sat down with a seasoned audit specialist who’s seen it all—from spotless ledgers to total messes (and everything in between). Below, we answer some of the most common trust account audit questions accountants often ask—plus a few they wish they’d asked sooner.
1. Do I really need a trust account audit?
If you're managing funds on behalf of clients in your accounting practice—yes, you do.
Trust account audits are mandatory for members of CPA Australia and Chartered Accountants ANZ who deal with client monies. This applies whether you're in public practice, acting as an investment adviser, or running a solo firm. The requirements are set out in APES 310, and they’re not optional.
Skipping it? That's a sure-fire way to get in trouble with your professional body.
2. What’s the audit period, and when is it due?
It depends on when the account was opened.
If your trust account was opened before 1 July 2011, your audit period ends 31 March each year.
If it was opened after 1 July 2011, the audit period is 12 months from the end of the month in which the account was opened.
The audit report must be completed within 3 months of the period end date. Don’t wait until the last minute—it’s one of the biggest traps firms fall into.
Check the Accountant Trust Account Audit Service
3. Who can conduct a trust account audit?
Not just anyone with “auditor” in their email signature.
Your auditor must be a member of either CPA Australia or Chartered Accountants ANZ and hold a current Certificate of Public Practice. They also need appropriate experience and competence in auditing trust accounts.
You can’t use an auditor who:
Is a current or recent (within 2 years) partner or employee of your firm.
Has a financial interest in your business.
Might be seen as lacking independence.
Even if the auditor ticks all the boxes technically, perceived conflicts of interest can still disqualify them.
4. What happens if I don’t get my trust account audited in time?
It’s not something you want on your professional record.
If you miss the audit deadline or fail to complete the audit altogether, your professional body (CPA Australia or CA ANZ) might take disciplinary action. This can range from a warning to formal investigation or even suspension, depending on the circumstances.
It’s always better to inform them early if you foresee a delay. Trying to sweep it under the rug never works out well.
5. What are the most common mistakes firms make during trust account
audits?
According to our audit specialist, the top culprits are:
Missing documentation: Think signed client agreements, bank reconciliations, or transaction histories.
Not separating trust funds properly: Mixing trust and operational funds is a big no-no.
Late audits: Procrastination is common, but it can backfire fast.
Poor record-keeping: If your files are all over the place, your audit will be too.
Using an ineligible auditor: This one catches a lot of firms off guard.
The key takeaway? Stay organised, stay on top of deadlines, and work with a qualified auditor who knows what they’re doing.
6. Can I lodge the audit report myself?
Here’s where it gets interesting.
You don’t need to lodge unqualified audit reports (i.e. those with no issues) unless specifically required by your professional body or another authority. But you do need to retain the report on file and be ready to show it during a practice review or compliance check.
If your auditor flags any concerns in their report, you may need to lodge it and take further action. In these cases, your professional body will guide you on next steps.
7. Should I outsource my audits or keep them in-house?
It depends on your firm’s size, expertise, and bandwidth.
Some firms have the resources to keep trust account audits in-house—especially if they’re auditing accounts for external clients. Others find it more efficient (and less stressful) to outsource the process to an approved auditor who handles everything independently.
If you’re offering trust account audit for accountant clients, outsourcing can also provide a level of objectivity that builds trust and credibility in your service.
Final Thoughts
Trust account audits don’t have to be painful.
With the right planning, the right auditor, and a solid understanding of the rules, your firm can breeze through audit season without breaking a sweat. Knowing what to expect—and what can go wrong—is half the battle.
So whether you’re preparing your own audit or helping clients meet their compliance obligations, keeping this advice in your back pocket will save you stress, time, and possibly a call from your professional body.
Still unsure? Don’t wing it. Speak to an audit specialist early. A 10-minute chat now could save you weeks of hassle later.
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