A special type of bank account where a deposit is held by an agent on behalf of another person in relation to real estate, or settlement transactions.

"Money you handle on behalf of someone else, under your appointment to act as an agent." It might include payments for residential, commercial, or retail rent, sales deposits, utilities if they are not already included in the rent, advertising expenses, maintenance costs, strata levies, and bonds.

In every situation where a professional manages funds on behalf of their client in a fiduciary capacity, they must undergo an annual audit of their entrusted accounts. This crucial practice ensures transparency and compliance with financial regulations, ultimately fostering trust and accountability between service providers and their clientele.

For a trust account audit, it's vital to prepare and provide all necessary financial records in advance, fostering a smooth process. These documents include trust account statements for the reporting period, deposit and receipt books, cheque or electronic transfer details, cash book records, monthly reconciliations, trust account journals, client ledgers, and monthly trial balances. Cooperation and readiness with your auditor ensure an efficient audit.

The list of eligible trust account auditors under the Act now includes authorised audit companies, as well as members of Professional Accounting Bodies defined by ASIC Regulations 2001, including CPA Australia, Institute of Chartered Accountants in Australia, and National Institute of Chartered Accountants. These auditors are required to possess a Public Practising Certificate from one or more of these professional bodies.