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MAIN AREAS OF NON-COMPLIANCE

As the Reporting Accountant, we are required to complete a substantial work programme that obliges us to test the practice's compliance with the Solicitors Accounts Regulations 2001. We have identified the following main areas that many solicitors should address in order to remain compliant with these regulations:

BALANCING STATEMENTS

Problem
Regulation 20 refers to the preparation of Client Balancing Statements and Office Balancing Statements:

Client Balancing Statements:

  • These statements must be prepared twice per year –at year end and at half year
  • These statements must be prepared within two months of the relevant date
  • The Reporting accountant will include details of balancing statement as Appendix 3 to Accountants Report to be submitted to Law Society

Office Balancing Statements:

  • This statement must be prepared once a year –at year end
  • This statement must be prepared within two months of the relevant date
  • The Reporting accountant will include details of balancing statement as Appendix 5 to Accountants Report to be submitted to Law Society
Recommendation
It is imperative that these Balancing Statements are prepared within the relevant time frames. In order to do so, bank accounts must be reconciled at these dates in order to give accurate figures.
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