The Importance of NSW Law Society External Examinations for Solicitors

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For legal practitioners in New South Wales, maintaining a compliant trust account is not just a matter of good practice—it is a regulatory requirement. The NSW Law Society mandates that all solicitors operating a trust account undergo an annual external examination to ensure compliance with legal and ethical standards.

At Trinity Accounting Practice, we are registered NSW Law Society External Examiners, providing solicitors and legal firms with the independent oversight required to meet their trust account obligations. But why is this examination crucial, and how can your firm benefit from a proactive approach?

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What is an NSW Law Society External Examination?

A trust account examination is an annual review of a solicitor’s statutory trust account to ensure compliance with the Legal Profession Uniform Law (NSW) and the Legal Profession Uniform General Rules 2015. These regulations exist to protect clients’ funds and uphold public trust in the legal profession.

During the external examination, an accredited examiner will assess whether the trust account records have been maintained correctly, reconciliations are accurate, and funds are managed in accordance with regulatory requirements.

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Why Are External Examinations Essential for Solicitors?

✅ Ensures Compliance with the Law
Solicitors are legally required to submit an external examination report to the NSW Law Society by May 31 each year. Failing to comply can result in penalties, audits, or disciplinary actions.

✅ Prevents Financial Mismanagement
A professional review identifies errors, discrepancies, or risks in the management of trust funds before they escalate into legal or financial issues.

✅ Maintains Client Confidence
Clients trust solicitors to handle their funds securely. Regular external examinations reinforce transparency and reliability, strengthening a firm’s professional reputation.

✅ Avoids Legal and Ethical Risks
Non-compliance with trust account rules can lead to serious legal consequences, fines, or even disqualification from legal practice. Regular reviews ensure compliance and mitigate risk.

✅ Streamlines Internal Financial Practices
An external examiner provides guidance on best practices, improving internal trust account management, reducing administrative errors, and enhancing financial transparency.

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What Does a Trust Account Examination Cover?

At Trinity Accounting Practice, our NSW Law Society External Examination services include:

🔹 Verification of trust account records to ensure compliance with statutory regulations.
🔹 Assessment of bank reconciliations to confirm proper fund management.
🔹 Review of trust transactions, including client deposits and withdrawals.
🔹 Identification of compliance risks and recommendations for improvement.
🔹 Lodgement of the external examination report with the NSW Law Society.

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Who Needs a Trust Account Examination?

Any solicitor or law firm that operates a trust account in NSW must have it examined annually. This includes:

✔ Law firms holding funds on behalf of clients.
✔ Solicitors managing property settlements or transactions.
✔ Practitioners receiving client payments in advance.

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Why Choose Trinity Accounting Practice?

🔹 Accredited NSW Law Society External Examiners – We are fully qualified to conduct trust account examinations.
🔹 Industry Expertise – Our team has extensive experience in legal accounting and compliance.
🔹 Fast & Efficient Process – We conduct examinations promptly, ensuring timely submission to the NSW Law Society.
🔹 Confidential & Professional Service – We uphold the highest standards of integrity and discretion.

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Need an External Examination? Contact Us Today!

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If your legal practice requires an NSW Law Society External Examination, we are here to help.

📍 Trinity Accounting Practice
📌 159 Stoney Creek Road Beverly Hills NSW 2209
☎ 02 9543 6804
🌐 www.trinitygroup.com.au
📅 Weekend & after-hours appointments available!

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Ensure your trust account remains compliant—book your external examination today!

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