Wednesday, May 27, 2009

External Examiner - reporting obligation if money disbursed by Electronic Funds Transfer (EFT)

A law practice can only disburse trust money by EFT if it has been approved to do so by the Queensland Law Society (QLS).

The Law Practice Statutory Declaration & Trust Money Statement (QLS Form 4 (LPR)) is to be completed by law practices and provided to external examiners prior to the commencement of the final examination. QLS Form 4 (LPR) requires a law practice to state whether funds were disbursed by EFT and whether the law practice has complied with the QLS' EFT Guidelines.

If trust funds were disbursed by EFT and the law practice did not have approval from QLS to do so, or did not comply with the QLS' EFT Guidelines, or stated in QLS Form 4 (LPR) that it had not disbursed trust funds by EFT, the External Examiner is required to report this at Item 2 of the External Examiner's Report (QLS Form 5 (LPR)).

It is suggested that the External Examiner should sight the letter of approval from QLS and the QLS' EFT Guidelines.

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