SRA Audits

What is it?

We help many solicitors with client money audits to ensure they comply with the Solicitors Regulation Authority (SRA). SRA client money audits are an important tool for ensuring that solicitors in England and Wales are properly handling client money. These audits help to protect the public by ensuring that solicitors are maintaining proper records, holding client money in separate accounts, and following proper procedures for handling client money. They also help to maintain the integrity and reputation of the legal profession by ensuring that solicitors are operating in an ethical and responsible manner.

The rules and regulations

The SRA's rules and regulations related to client money are set out in the SRA Accounts Rules 2019, which require solicitors to maintain proper records, hold client money in separate accounts, and follow proper procedures for handling client money. During a client money audit, the auditor will review a solicitor's records, bank statements, and other documentation to ensure that they are in compliance with these rules.

The process

The audit process typically begins with the selection of an audit team, which will include a lead auditor and other team members with the appropriate skills and experience. The audit team will then develop an audit plan, which outlines the scope and objectives of the audit, as well as the procedures that will be used to collect and analyse data. The audit team will typically review the solicitor's records, bank statements, and other documentation to ensure that they are in compliance with the SRA's rules and regulations related to client money.

How we can help

The audit team will also conduct on-site inspections at the solicitor's office, where they will review the solicitor's procedures and practices for handling client money. They may also interview key personnel, such as management and employees, to gather additional information about the solicitor's operations and compliance with regulations.

Once the audit is complete, the audit team will prepare a report that summarises their findings and recommendations. If any non-compliance is found, an AR30 form is prepared and sent to the SRA to determine any further action to be taken.