Short Answer Questions about Trust Account:

Q1: Define 'trust money' in accordance with the Conveyancers Act 2006.

Q2: What is controlled money?

Q3: As a conveyancer who receives trust money, you must maintain a general trust account in Victoria. You must deposit all trust money into your general trust account, as soon as possible. Provide four (4) examples of circumstances that overrule this requirement.

Q4: What two (2) items of information must be included in the general trust account name?

Q5: If you receive transit money in cash, must you first deposit it in your general trust account or your controlled money account? Explain why and what procedure you must follow.

Q6: Explain how money is protected in a conveyancer's trust account. List what trust money cannot be used for.

Q7: Detail the system requirements for keeping a computerised accounting system.

Q8: Discuss the requirement for back-ups if you maintain a computerised accounting system. Refer to Regulation 10 of Conveyancers (Trust Account and General) Regulations 2018.

Q9: A)List 10 items that are to be contained within your trust account cash receipts book. B)List the details that are to be contained within your trust account cash payments book, including in respect to both cheques and electronic funds transfers. C)List the requirements for a trust account journal transfer, and the particulars which must be recorded. D)Within what time period must records in the cash books and trust ledger accounts be made?

Q10: If you receive trust money that is required to be paid into a general trust account and the money is not paid in by direct deposit, what should you do? Refer to Regulation 13 of the Conveyancers (Trust Account and General) Regulations 2018.

Q11: You must disclose to a client the costs of the conveyancing work that you are to carry out before or at the time you are retained or, if this is not possible, as soon as practicable after being retained. What 3 key points must you disclose?

Q12: Identify three (3) pieces of information recorded in the trust ledger account's title. For each client file.

Q13: For each receipt of trust money, what must you record in the trust ledger account? List at least four (4) items.

Q14: Discuss the requirements for reconciling the general trust account records. Refer to Regulation 21 of the Conveyancers (Trust Account and General) Regulations 2018.

Q15: What information must a trust account statement contain?

Q16: When must the trust account statement be provided?

Q17: Discuss the requirements for keeping trust records as per Regulation 32 of the Conveyancers (Trust Account and General) Regulations 2018.

Q18: Summarise the requirements for auditing of trust records.

Q19: List three (3) types of irregularities that the auditor must report to the Director of Consumer Affairs Victoria.

Q20: Who can you use to audit your trust record? What are the requirements for an approved auditor?

Q21: What is the timeframe for lodging the audit report with the Director of Consumer Affairs Victoria each year?

Q22: Is there any difference between the time allowed for clearance of trust receipts by way of cash/eft, personal cheque or Bank Cheque (absent a special clearance)?

Q23: The business is holding a total of $120,000.00 in its general trust account.

On 2 September it receives and banks a personal cheque from John Jones in the sum of $1,000.00 on account of disbursements. The business does not hold any other funds on behalf of John Jones.

On 3 September, on instructions from John Jones, the business pays $555.00 from trust to UBeaut Builders for a building report. Are there any potential issues?

Q24: What is the maximum penalty for causing a deficiency in any trust account or trust ledger account or failing to pay or deliver any trust money?

Q25: Identify two (2) IT business software systems and two (2) IT management systems (one of which is a trust management system and the other management software). For each of these, outline at least 3 features.