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QUALITY REVIEW PROGRAM CLIENT MONIES QUESTIONNAIRE

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INTRODUCTION

APES 310 Client Monies sets the standards for members who deal with client monies or who act as an auditor of client monies. APES 310 was first issued in December 2010 replacing APS 10 Trust Accounts and GN 3 Operation of Trust Accounts. The main changes from APS 10 to APES 310 was not only did APES 310 require the audit of a member’s trust account but it also required any members dealing with client monies to have those transactions audited on an annual basis.

This questionnaire has been designed to assess a member’s compliance with the revised version of APES 310 issued May 2018 effective 1 October 2018.

Dealing with client monies refers to holding, receiving or disbursing client monies. Client monies are those monies controlled by a member, or member’s personnel, and which are the property of a client, where the member nor their personnel have a present entitlement over those monies. In this respect, control refers to being able to authorise the transacting of client monies.

This questionnaire begins with a preliminary section for all members who deal with client monies or who act as auditors of client monies. The questionnaire then splits into two parts as follows:

Part A – Professional obligations of a member who deals with client monies.

Part B – Professional obligations of an auditor of a member’s compliance with APES 310.

Where there are two or more partners who perform an audit of a member’s compliance with APES 310, separate questionnaires for each partner must be completed.

The questionnaire should be marked “Y”, “N”, or “N/A”. In the event that any commentary is provided it should be clearly referenced to the particular question in the questionnaire. All non-compliance with mandatory professional or legislative requirements is to be reported in the quality review report. The reviewer is advised to comment on all non-mandatory breaches in the Other Matters Report.

PRIVACY

In this Privacy Statement, “Personal Information” has the same meaning as in the Privacy Act 1988 (Cth).

CPA Australia Ltd is committed to protecting the privacy and security of the Personal Information which it holds about you.

The Personal Information which you provide us with in this Questionnaire will be used by CPA Australia Ltd to process your Quality Review; and may be used for aggregated statistics for monitoring and research. This information may be viewed by the CPA Australia Quality Review Advisory Committee and also the Financial Reporting Council and any other Regulatory authority.

If you do not provide us with this Personal Information, we may not be able to process your review.

You have the right to access any Personal Information which CPA Australia Ltd holds about you, subject to the exceptions in the Privacy Act 1988 (Cth). You may also request the correction of information which is inaccurate. Access and/or correction requests can be made at your local CPA Australia office.

For more information on CPA Australia’s Privacy Policy, visit our website at cpaaustralia.com.au/utilities/privacy

Review Code(s)

Reviewer

Review Date

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PART A – PROFESSIONAL OBLIGATIONS OF A MEMBER IN PUBLIC PRACTICE WHO DEALS WITH CLIENT MONIES

1. (a) Where a member has dealt with client monies, is there evidence the member has ensured their compliance with APES 310 was audited within 3 months of the Applicable Year-End Date? (APES 310.7.1) (Where trust accounts are audited according to the Trust Accounts Act (Qld) the member must adhere to those legislative requirements)

Note: If answered ‘No’ the member is in breach of APES 310.7.1. Not complying with the requirement of an annual audit is a breach of APES 310.7.1. Further, without a signed audit report, there is no certainty that the member has complied with APES 310.3-7

(b) Where a member has had their compliance audited please confirm

a. date of the latest Applicable Year End date

b. date of audit report

c. name of the auditor

d. accounting body they are member of

e. membership number

f. audit opinion

(c) Is the quality review being conducted between the applicable year end and when the audit report is required to be issued? If yes, please complete (b) based on the last audit report received, confirm that the member has engaged another member in practice to perform the audit (through sighting the engagement letter) and have the member sign the declaration at Appendix 1

COMMENTS

2. Has the member changed their auditor since the last signed audit report? If yes, is there evidence that the member:

(a) appointed a replacement auditor within 20 Business Days of the resignation/removal of the previous auditor; and

(b) notified CPA of the membership details of the new auditor within 20 business days of the appointment of the auditor.

Note: If answering ‘No’ to either or both of a and b the member is in breach of APES 310.7.9.

COMMENTS

Yes No

Yes No

Yes No

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PART B – PROFESSIONAL OBLIGATIONS OF AN AUDITOR OF CLIENT MONIES

3. Has the member complied with APES 110 Section 291 Independence – Other Assurance Engagements of the Code? (APES 310.8.1 and APES 110.291)

Note: If answered ‘No’ to the above, the member is in breach of APES 310.8.1 and APES 110.291.

COMMENTS

4. Has the member undertaken an audit of another member in public practice’s compliance with APES 310 in circumstances where a reasonable and informed third party having knowledge of all relevant information (including safeguards applied) would determine that the independence of the member was impaired as a result of a past, existing or proposed relationship? (APES 310.8.2)

Note: If answered ‘Yes’ to the above, the member is in breach of APES 310.8.2.

COMMENTS

5. Is there evidence that the member, having received permission from the other member in public practice, requested in writing from the existing auditor any known information which the Member needed to be aware of before accepting the Engagement? (APES 310.8.3)

Note: If answered ‘No’ to the above the member is in breach of APES 310.8.3.

COMMENTS

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6. When providing the services as an auditor of client monies, has the member included in the terms of engagement the option to notify the relevant Professional Body of the auditee about any concerns that might arise in relation to the Auditor’s appointment, resignation or removal? (APES 310.8.4)

Note: If answered ‘No’ to the above the member is in breach of APES 310.8.4.

COMMENTS

7. Subject to any legal requirements, has the member performed the audit of client monies in accordance with auditing and assurance standards, including the preparation of the auditor’s report? (APES 310.8.5 and APES 310.8.6)

Note: If answered ‘No’ to the above, the member is in breach of APES 310.8.5 and APES 310.8.6.

COMMENTS

8. Has the member prepared the Assurance Engagement report in accordance with Auditing and Assurance Standards? (APES 310.8.6)

Note: If answered ‘No’ to the above, the member is in breach of APES 310.8.6.

COMMENTS

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9. Where the member has issued an assurance engagement report containing a modified opinion, is there evidence the member has lodged the report with the applicable Professional Body within 15 Business Days of completion of the applicable Assurance Engagement? (APES 310.8.8)

Note: If answered ‘No’ to the above, the member is in breach of APES 310.8.8.

COMMENTS

10. Is there evidence that in the instance the member became aware of any deficiency of client monies the member reported this to the auditee’s professional body within 5 business days? (APES 310.8.9)

Note: If answered ‘No’ to the above, the member is in breach of APES 310.8.9.

COMMENTS

11. Is there evidence that the member reported to the auditee’s professional body within 10 business days of when they became aware of any material:

(a) failure by an auditee to comply with APES 310.5.13, APES 310.5.24, APES 310.6.2 or APES 310.6.10;

(b) uncorrected error reflected in a statement issued by a financial institution; or

(c) circumstances where client monies have not been transacted or maintained in accordance with APES 310? (APES 310.8.10)

Note: If answered ‘No’ to the above, the member is in breach of APES 310.8.10.

COMMENTS

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12. Subject to legislative requirements, is there evidence that the member has retained relevant working papers for a period of at least 7 years? (APES 310.8.12)

Note: If answered ‘No’ to the above, the member is in breach of APES 310.8.12.

COMMENTS

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OVERALL FINDINGS

BREACHES OF MANDATORY REQUIREMENTS IDENTIFIED:

POSITIVE FEEDBACK TO BE CONVEYED TO THE MEMBER(S) IN THE REVIEWER’S SUMMARY – OTHER MATTERS REPORT:

DEFICIENCIES IN THE QUALITY CONTROL SYSTEM THAT WILL BE NOTED IN THE REVIEWER’S SUMMARY – OTHER MATTERS REPORT WITH SUGGESTIONS FOR IMPROVEMENT:

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APPENDIX 1

DATE:

Quality Review Department

CPA Australia

GPO Box 2820

MELBOURNE VIC 3001

DECLARATION OF INTENDED COMPLIANCE WITH AUDIT REQUIREMENTS UNDER APES 310

I, the undersigned, declare that the requirements of APES 310 Client Monies applies to me. Therefore, I will have my compliance with APES 310 audited in accordance with the standard which stipulates that this audit will be conducted within 3 months of the applicable year or in accordance with applicable legislative requirements.

I understand that a failure to meet my professional obligations under APES 310 will result in a modified audit opinion being issued which will oblige the auditor to forward this opinion to CPA Australia as required by APES 310.

Signed

Signature

Print name

Membership number

cpaaustralia.com.au

CPAH3244_05.2019