Trust account surprise check checklist
Firm principals are responsible for surprise checks of trust accounts as part of supervision obligations. This checklist is for supervising principals carrying out periodic surprise checks under the Legal Profession Uniform Law.
This is a 12-step trust account surprise check. It covers cash balance, ledgers, receipts, reconciliation, and sign-off.
The checklist
Confirm scope
Confirm the check covers the general trust account and any controlled money accounts.
Obtain bank statements
Obtain current bank statements for all trust accounts on the day of check.
Obtain trust cash book
Obtain the trust cash book balance as at the check date.
Check receipts issued
Check that trust receipts have been issued for all recent deposits.
Check unissued receipts
Check there are no unissued receipts for received monies.
Reconcile cash book
Reconcile the cash book to the bank statement.
Reconcile trust ledgers
Reconcile matter ledgers to the cash book balance.
Investigate variances
Investigate and document any variances identified.
Check cheque signatories
Confirm only authorised signatories can disburse trust money.
Check unpresented cheques
Review unpresented cheques for age and legitimacy.
Review suspicious transactions
Review any suspicious or unusual transactions for AML/CTF reporting.
Document and sign off
Document the surprise check with results and sign off by a principal.
When this checklist applies
Use for periodic unannounced trust account checks by a firm principal.
Common pitfalls
- Check not actually unannounced
- Variances not investigated
- Ledgers not reconciled to bank statement
- Unissued receipts not checked
- Unpresented cheques left unresolved
Run this checklist on a real matter
Quillio can compile trust account surprise check reports from the practice management system. See /practice-areas/firm-management or start a free trial.
General guidance for trust surprise checks. Apply jurisdictional legal profession rules and firm procedures.
Use this checklist on your matter.
Quillio can run this checklist on a specific NSW conveyancing matter — confirm each item, calculate adjustments, and generate the supporting documents. The free trial requires no credit card.
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