by John McCarthy Consulting Ltd. | Mar 3, 2024 | News
Following on from last week’s blog about the introduction of the new Solicitors Accounts Regulations 2023, it’s worth bearing in mind that the existing Solicitors Accounts Regulations 2014 remain applicable for any accounting period that commenced before 1 July 2023, until such time as the solicitor has filed the Reporting Accountant’s report with the Law Society.
Here is a list of some of the changing and new requirements for the accounting by solicitors:
- Balancing statements must be prepared quarterly for client-account transactions;
- A list of client ledger balances outstanding for two years or more must be prepared at the accounting date, and given to the Law Society by the Reporting Accountant;
- A separate client bank account is no longer needed where a solicitor is acting as the personal representative of an estate;
- Client ledger balances must be reviewed for undue/unnecessary delays in discharging client moneys. Immediate action must be taken to clear same, where appropriate;
- Clients are to be given a statement of account for each matter;
- Client moneys are to be returned to clients when the legal service is completed;
- Evidence of payments in cash must include the witnessed signature of the recipient;
- Transfers of funds from the ‘client’ to the ‘office’ account must be for specific clients;
- The Law Society must be notified where a deficit cannot be rectified within seven days of the deficit coming to the solicitor’s attention;
- Cheque signatories or transaction authorisers on the client account are to include a solicitor who is a partner or a sole practitioner with a current practising certificate;
- A ‘Register of Undertakings’ and of ‘Funds Held On Joint Deposit’ are to be maintained;
- A file of documents or record for electronic transfers must be maintained;
- The Compliance Partner is to provide specific confirmation to the Law Society, through the ‘Form of Acknowledgement’, of compliance with the regulations in respect of:
- balancing statements;
- balances outstanding two years or more;
- review of client-ledger balances for undue or unnecessary delays; and
- back-up of computerised accounting systems.
- Borrowing/lending/organising loans from/to Client Accounts are prohibited, as are loans between Client Accounts;
- Client accounts must not hold moneys other than for the legal services provided;
- Client accounts are not to be used to hold/pass through, solicitors’ personal moneys;
- Responsibility for breach of the regulations extends to the solicitor responsible for the actual breach, and not just the principal or partners of the firm;
- The Law Society may conduct investigations remotely;
- The Law Society may instruct an authorised person to communicate with such persons and seek such information and documentation as the Society considers necessary.
The full text of the Regulations is here.
All our courses are listed here.
Please also go to our website to see our:
- Anti-Money Laundering Policies Controls & Procedures Manual (March 2022) – View the Table of Contents click here.
- AML Webinar (December 2023) available here, which accompanies the AML Manual. It explains the latest legal AML reporting position for accountancy firms and includes a quiz. Upon completion, you receive a CPD Certificate of attendance in your inbox.
- letters of engagement and similar templates. Please visit our site here where immediate downloads are available in Word format. A bulk discount is available for orders of five or more items if bought together.
- ISQM TOOLKIT or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard, please contact John McCarthy FCA by e-mail at john@jmcc.ie.
- We typically tailor ISQM training and brainstorming sessions to suit your firm’s unique requirements. The ISQM TOOLKIT 2022 is available to purchase here.
by John McCarthy Consulting Ltd. | Mar 3, 2024 | News
The Law Society of Ireland has introduced new Solicitors Accounts Regulations 2023 which came into operation on 1 July 2023. Among the changes, there are new requirements for reporting accountants.
From 1 July 2023 reporting accountants must:
- Examine Balancing Statements prepared at quarterly intervals in respect of client-account transactions (currently these are examined at six monthly intervals);
- File reports within five months of the accounting date;
- Test-check that withdrawals of fees are notified to the clients;
- Test-check postings before and after the accounting date;
- File the Closing Reporting Accountant’s Reports within three months of cessation;
- Provide reasons for the withdrawal of approval of a Reporting Accountant;
- Report, directly to the Law Society, an opinion or a suspicion of a deficit, rather than waiting to submit an annual report; and
- Provide to the Law Society a list of any client ledger balances outstanding for two years or more prepared as at the accounting date.
The full text of the Regulations is here.
All our courses are listed here.
Please also go to our website to see our:
- Anti-Money Laundering Policies Controls & Procedures Manual (March 2022) – View the Table of Contents click here.
- AML Webinar (December 2023) available here, which accompanies the AML Manual. It explains the latest legal AML reporting position for accountancy firms and includes a quiz. Upon completion, you receive a CPD Certificate of attendance in your inbox.
- letters of engagement and similar templates. Please visit our site here where immediate downloads are available in Word format. A bulk discount is available for orders of five or more items if bought together.
- ISQM TOOLKIT or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard, please contact John McCarthy FCA by e-mail at john@jmcc.ie.
- We typically tailor ISQM training and brainstorming sessions to suit your firm’s unique requirements. The ISQM TOOLKIT 2022 is available to purchase here.
by John McCarthy Consulting Ltd. | Apr 28, 2023 | News
Following on from our earlier blogs on 11 April and 18 April about the introduction of the new Solicitors Accounts Regulations 2023, we thought that a worked example about the transition to the new rules, would be helpful.
The existing Solicitors Accounts Regulations 2014 remain applicable for any accounting period that commenced before 1 July 2023, until such time as the solicitor has filed the Reporting Accountant’s report with the Law Society. The full text of the Regulations is here.
The 2023 Regulations apply for accounting periods commencing on/after 1 July 2023. Let’s take two practical examples to clarify the position:
Law Firm Client with YE 30/4/2023 – apply the existing 2014 regulations for the full financial year to 30/4/2023 because the 2023 regulations don’t commence until 1 July 2023.
Apply the 2023 regulations from the accounting period starting on 1 May 2024 for this client, with the first quarterly test being on 31 July 2024.
Law Firm Client with YE 31/12/2023 – the existing 2014 Regulations apply for the full financial year 2023 and the new 2023 Regulations apply to this client from 1 January 2024 with the first quarterly reconciliation happening on 31 March 2024.
Please go to our website to see our new ISQM TOOLKIT or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard, please contact John McCarthy FCA by e-mail at john@jmcc.ie.
We typically tailor training and brainstorming sessions to suit your firm’s unique requirements.
Publications and AML webinars:
- The ISQM TOOLKIT 2022 is available to purchase here.
- See our latest Anti-Money Laundering Policies Controls & Procedures Manual (March 2022) – View the Table of Contents click here.
- Also we have an updated AML webinar (March 2022) available here, which accompanies the AML Manual. It explains the current legal AML reporting position for accountancy firms and includes a quiz. Upon completion, you receive a CPD Certificate of attendance in your inbox.
- To ensure your letters of engagement and similar templates are up to date visit our site here where immediate downloads are available in Word format. A bulk discount is available for orders of five or more items if bought together.
by John McCarthy Consulting Ltd. | Apr 7, 2023 | News
Following on from last week’s blog about the introduction of the new Solicitors Accounts Regulations 2023, it’s worth bearing in mind that the existing Solicitors Accounts Regulations 2014 remain applicable for any accounting period that commenced before 1 July 2023, until such time as the solicitor has filed the Reporting Accountant’s report with the Law Society.
Here is a list of some of the changing and new requirements for the accounting by solicitors:
- Balancing statements must be prepared quarterly for client-account transactions;
- A list of client ledger balances outstanding for two years or more must be prepared at the accounting date, and given to the Law Society by the Reporting Accountant;
- A separate client bank account is no longer needed where a solicitor is acting as the personal representative of an estate;
- Client ledger balances must be reviewed for undue/unnecessary delays in discharging client moneys. Immediate action must be taken to clear same, where appropriate;
- Clients are to be given a statement of account for each matter;
- Client moneys are to be returned to clients when the legal service is completed;
- Evidence of payments in cash must include the witnessed signature of the recipient;
- Transfers of funds from the ‘client’ to the ‘office’ account must be for specific clients;
- The Law Society must be notified where a deficit cannot be rectified within seven days of the deficit coming to the solicitor’s attention;
- Cheque signatories or transaction authorisers on the client account are to include a solicitor who is a partner or a sole practitioner with a current practising certificate;
- A ‘Register of Undertakings’ and of ‘Funds Held On Joint Deposit’ are to be maintained;
- A file of documents or record for electronic transfers must be maintained;
- The Compliance Partner is to provide specific confirmation to the Law Society, through the ‘Form of Acknowledgement’, of compliance with the regulations in respect of:
- balancing statements;
- balances outstanding two years or more;
- review of client-ledger balances for undue or unnecessary delays; and
- back-up of computerised accounting systems.
- Borrowing/lending/organising loans from/to Client Accounts are prohibited, as are loans between Client Accounts;
- Client accounts must not hold moneys other than for the legal services provided;
- Client accounts are not to be used to hold/pass through, solicitors’ personal moneys;
- Responsibility for breach of the regulations extends to the solicitor responsible for the actual breach, and not just the principal or partners of the firm;
- The Law Society may conduct investigations remotely;
- The Law Society may instruct an authorised person to communicate with such persons and seek such information and documentation as the Society considers necessary.
The full text of the Regulations is here.
Please go to our website to see our new ISQM TOOLKIT or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard, please contact John McCarthy FCA by e-mail at john@jmcc.ie.
We typically tailor training and brainstorming sessions to suit your firm’s unique requirements.
Publications and AML webinars:
- The ISQM TOOLKIT 2022 is available to purchase here.
- See our latest Anti-Money Laundering Policies Controls & Procedures Manual (March 2022) – View the Table of Contents click here.
- Also we have an updated AML webinar (March 2022) available here, which accompanies the AML Manual. It explains the current legal AML reporting position for accountancy firms and includes a quiz. Upon completion, you receive a CPD Certificate of attendance in your inbox.
- To ensure your letters of engagement and similar templates are up to date visit our site here where immediate downloads are available in Word format. A bulk discount is available for orders of five or more items if bought together.
by John McCarthy Consulting Ltd. | Apr 5, 2023 | News
The Law Society of Ireland has introduced new Solicitors Accounts Regulations 2023 which will come into operation on 1 July 2023. Among the changes, there are new requirements for reporting accountants.
From 1 July 2023 reporting accountants must:
- Examine Balancing Statements prepared at quarterly intervals in respect of client-account transactions (currently these are examined at six monthly intervals);
- File reports within five months of the accounting date;
- Test-check that withdrawals of fees are notified to the clients;
- Test-check postings before and after the accounting date;
- File the Closing Reporting Accountant’s Reports within three months of cessation;
- Provide reasons for the withdrawal of approval of a Reporting Accountant;
- Report, directly to the Law Society, an opinion or a suspicion of a deficit, rather than waiting to submit an annual report; and
- Provide to the Law Society a list of any client ledger balances outstanding for two years or more prepared as at the accounting date.
The full text of the Regulations is here.
Please go to our website to see our new ISQM TOOLKIT or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard, please contact John McCarthy FCA by e-mail at john@jmcc.ie.
We typically tailor training and brainstorming sessions to suit your firm’s unique requirements.
Publications and AML webinars:
- The ISQM TOOLKIT 2022 is available to purchase here.
- See our latest Anti-Money Laundering Policies Controls & Procedures Manual (March 2022) – View the Table of Contents click here.
- Also we have an updated AML webinar (March 2022) available here, which accompanies the AML Manual. It explains the current legal AML reporting position for accountancy firms and includes a quiz. Upon completion, you receive a CPD Certificate of attendance in your inbox.
- To ensure your letters of engagement and similar templates are up to date visit our site here where immediate downloads are available in Word format. A bulk discount is available for orders of five or more items if bought together.
