Victorian Numbered Regulations

LEGAL PROFESSION REGULATIONS 2005 (SR NO 152 OF 2005) - REG 3.3.40

r. 3.3.40

    (1)         The law practice or approved clerk must appoint an approved external examiner—

        (a)     within one month after receiving trust money (other than transit money); or

        (b)     if the only trust money received in an audit year is transit money—within sufficient time to allow the trust records in relation to that transit money to be externally examined for the audit year.

    (2)     An approved external examiner is not eligible to be appointed to examine the trust records of a law practice or an approved clerk if—

        (a)     the examiner carries out any work for the practice or clerk, other than—

              (i)     the examination of any records or accounts (other than trust records) kept by the practice or clerk on the practice's or clerk's own account or on behalf of other persons in connection with the business of the practice or clerk; or

              (ii)     advisory or consulting duties consequential on the examiner's function as examiner; or

              (iii)     the preparation of income tax returns for the practice or clerk; or

        (b)     any of the following is, or has been at any time in the last 2 years, engaged in keeping any trust records of the practice or clerk—

              (i)     the examiner; or

              (ii)     a member of a firm of which the examiner is a member or employee; or

              (iii)     an employee of the examiner, or of a firm of which the examiner is a member or employee; or

        (c)     the examiner is, or has been at any time in the last 2 years, an associate of the practice or an employee of the clerk; or

        (d)     the examiner is a member of the immediate family of an associate of the practice, or of the clerk; or

        (e)     the examiner is in practice as an Australian legal practitioner or in business as an approved clerk; or

        (f)     the examiner is an associate of another legal practice.

    (3)     Sub-regulation (2) does not apply if the Board gives prior written approval for the appointment.

    (4)     A law practice or an approved clerk cannot appoint an approved external examiner unless the examiner signs a written consent in or to the effect of the form approved by the Board.