The majority of solicitors and real estate agents have their trust account audited each year, however, never review their auditor performance. So, is it time to change your trust account auditor?
To answer this let’s look at why you complete a trust account audit? Generally, the answer is because it is required as a result of specific legislation.
Obviously, the legal process is an important aspect of governing trust accounts, and it is one which provides stakeholders assurance. But is that all there is to a trust account audit?
There lies an opportunity for your auditor to provide value-add services in addition to completing your audit. A good auditor will:
include recommendations to streamline your business operations;
benchmark best practices and provide observations on industry risks and trends;
as well as designing and improving internal controls.
Other questions to ask yourself is do you have a relationship with your auditor? Do you only see him or her once a year? Do you feel comfortable calling your auditor with a questions? Is your auditor knowledgeable about your industry?
Talk to your staff about the audit itself. Was it done timely? Are the auditors pleasant to work with? Did they respond to all questions? Are they always dealing with new audit staff? You don’t want an audit to be such a laborious task that your people dread it. It should be a positive working relationship, where both parties are striving for effective and efficient audits.
Before you switch, think through what you’re trying to accomplish and what’s giving you angst. What do you want that you’re not getting?