Attorneys Act, 1979 (Act No. 53 of 1979)Rules for the Attorneys' ProfessionSchedulesFourth Schedule : Auditor's Report(Second Part): Illustrative Auditor's Report (Qualified opinion) |
FOURTH SCHEDULE
AUDITOR'S REPORT
(Second Part): Illustrative Auditor’s Report (Unmodified opinion)
Circumstances
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Independent Registered Auditor’s Report on Attorneys Trust Accounts
To the <Practitioner / Partners / Directors1> (insert the name of the attorney’s firm)
We have undertaken a reasonable assurance engagement on the compliance of attorneys trust accounts of <insert the name of the attorney’s firm> with Section 78(1), 78(2)(a) and (b), 78(2A), 78(3) and 78(4) of the Attorneys Act, No. 53 of 1979 (the Act), and the Uniform Rules <insert specific rule numbers2> (the “Rules”) of the <insert the name of the relevant Law society> for the <period from <insert date> to <insert date>>/< year ended <insert date>>.
We clarify that we are not required to perform any procedures on records or documents relating to accounting for deceased and insolvent estates and trusts other than those dealt with via the firm’s trust banking account(s).
As part of our assurance engagement we are required to agree the information extracted from the accounting records and included in the attached Attorney’s Annual Statement on Trust Accounts for the <period from <insert date> to <insert date>>/ <year ended <insert date>> to the underlying records that were the subject of our engagement on the compliance of the attorneys trust accounts with the Act and Rules We are also required to read the attorney’s representations and the other disclosures in the Attorney’s Annual Statement on Trust Accounts for the purpose of identifying material inconsistencies with our knowledge obtained in our engagement on the compliance of attorneys trust accounts with the Act and Rules.
<Practitioner’s/Partner’s/Partners’/Director’s/Directors’> responsibility for the trust accounts
The <practitioner/partners/directors> is/are responsible for ensuring that the attorneys trust accounts are maintained in compliance with the Act and the Rules, and for such internal control as the <practitioner/partners/directors> determine(s) is necessary to maintain the integrity of the trust accounts in accordance with the relevant mandates, including such controls as the <practitioner/partners/directors> determine(s) is also necessary to prevent and detect fraud and theft. The <practitioner/partners/directors> is/are responsible for the preparing the Attorney’s Annual Statement on Trust Accounts and for the financial information and declarations contained therein.
Auditor’s responsibility
Our responsibility is to express a reasonable assurance opinion on the compliance of attorneys trust accounts with the Act and the Rules, based on our procedures performed, and to report as required on the Attorney’s Annual Statement on Trust Accounts.
We conducted our assurance engagement in accordance with International Standard on Assurance Engagements ISAE 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information. That standard requires that we comply with ethical requirements and plan and perform the engagement to obtain reasonable assurance about the compliance of the attorney’s trust accounts, in all material respects, with the Act and the Rules.
A reasonable assurance engagement in accordance with ISAE 3000 involves performing procedures to obtain evidence about the compliance of attorneys trust accounts with the Act and the Rules. The nature, timing and extent of procedures selected depend on the auditor’s judgement, including the assessment of the risks of non-compliance with the Act and the Rules, whether due to fraud and error. In making those risk assessments we considered internal control relevant to the circumstances of the engagement. Our reasonable assurance engagement included the following procedures:
| • | Considering, and applying when considered applicable in the engagement circumstances, the guidance in the Guide on Engagements on Attorneys Trust Accounts issued by the Independent Regulatory Board for Auditors; |
| • | Making inquiries of the attorney and the attorney’s staff; |
| • | Testing of transactions for all significant activities with the objective of evaluating whether: |
| o | Transactions were appropriately identified as trust transactions; |
| o | Trust transactions were in accordance with mandates and supported by adequate documentation and narrative to identify from whom funds were received, and for whose credit; |
| o | Deposits and withdrawals from the trust bank account were to, or for, a trust creditor; |
| o | that transfers to the attorney’s business account were only in respect of moneys claimed to be due to the attorney; and |
| • | Testing and/or scrutinising bank reconciliations, as considered appropriate in the engagement circumstances, and evaluating whether confirmations from financial institutions were in support of the records made available to us. |
We believe that our work performed and evidence obtained is sufficient and appropriate to provide a basis for our qualified opinion.
Basis for qualified opinion
The attorneys trust accounts were not maintained in compliance with the Act and the Rules, as follows3;
List …<insert instances of non-compliance identified>
Qualified opinion
In our opinion, except for the instances of non-compliance listed in the preceding paragraph, the attorney’s trust accounts of <insert the name of the attorney’s firm> for the period/year ended <insert date> were maintained in compliance with the Act and the Rules.
Report on Attorney’s Annual Statement on Trust Accounts4
As part of our engagement, on the compliance of attorneys trust accounts with the Act and the Rules, we have agreed the information extracted from the trust accounting records included in the accompanying Attorney’s Annual Statement on Trust Accounts for the <period from <insert date> to <insert date>>/ < year ended <insert date>> to the underlying records that were the subject of our assurance engagement. We have also read the Attorney’s Annual Statement on Trust Accounts for the purpose of identifying whether the information contained therein is inconsistent with our knowledge obtained in the course of our engagement. The Attorney’s Annual Statement on Trust Accounts is the responsibility of the attorney.
Based on our reading we have not identified we have not identified any information contained in the Attorney’s Annual Statement on Trust Accounts that is inconsistent with our knowledge obtained in the course of our engagement.
However, we have not undertaken an assurance engagement on the Attorney’s Annual Statement on Trust Accounts and accordingly we do not express an opinion thereon.5
Report on Other Legal and Regulatory Requirements
<The form and content of this section of the auditor’s report will vary depending on the nature of the auditor’s other reporting responsibilities.>6
Restriction on distribution use
This report is for the purpose of meeting the auditor reporting requirements of the Rules and, as regards the accompanying Attorney’s Annual Statement on Trust Accounts, the additional auditor reporting requirements of the Council and the Attorneys Fidelity Fund. Consequently it may not be suitable for any other purpose. It is intended solely for the use of <practitioner/partners/directors> of the firm, the Council and the Attorneys Fidelity Fund, and should not be distributed to other parties.
Auditor’s Signature
Name of individual registered auditor
IRBA Registration number of firm and/or auditor
Registered audit firm
Date of report
Auditor’s address (if not on a firm letterhead)
| 1 | Throughout the report - delete whichever is not applicable: “proprietor/partners/directors” |
| 2 | Applicable Rules are: 35.5; 35.6; 35.7; 35.8; 35.9; 35.10; 35.12; 35.13.7.6; 35.13.7.7; 35.13.8; 35.13.9; 35.13.12; 35.13.13; 35.13.14; 35.13.15; 35.13.16; 35.14; 35.16; 35.19; 36 |
| 3 | Any contravention of Sections 78(1), 78(2)(a) and (b), 78(2A), 78(3) and 78(4) of the Act, and any instance of contravention of the rules of the relevant society identified in the course of the engagement relating to trust accounts in terms of the Rules is regarded as material and should be reported. |
| 4 | Refer paragraphs 75-77 of the Guide for Registered Auditors: Engagements on Attorneys Trust Accounts for guidance regarding the auditor’s reporting responsibilities. |