64Annual audit of trust accounts

64 Annual audit of trust accounts S. 64(1) amended by No. 9925 s. 5(a), substituted by No. 10028 s. 36(a), amended by Nos 41/2003 s. 41(1), 63/2010 s. 47(1). (1) Within three months after 30 June in each year, every person who carried on business as an estate agent during the whole or any part of the previous financial year shall cause his accounts of trust money for the whole or the part of that financial year to be audited. 1. 120 penalty units. S. 64(1A) inserted by No. 41/2003 s. 41(2). (1A) The agent must not engage a person or firm as an auditor for the purposes of subsection (1) if the person or firm is not qualified under section 66 to act as the auditor. S. 64(2) substituted by No. 10028 s. 36(b). (2) The auditor shall— (a) take all reasonable steps to ensure that his report is completed within three months after 30 June; and S. 64(2)(b) amended by Nos 86/1994 s. 47(zp), 52/1998 s. 99(1), substituted by No. 63/2010 s. 47(2). (b) as soon as the report is completed, deliver the report to the agent concerned. S. 64(2A) inserted by No. 63/2010 s. 47(3). (2A) Within 10 business days after receiving the report under subsection (2)(b), the agent must lodge a copy of it with the Director. Penalty: 120 penalty units. S. 64(3) amended by No. 8/2003 s. 54(a)(b). (3) The agent shall retain the signed copy of the report for a period of 7 years after it was delivered to the agent and produce it on demand pursuant to this section. S. 64(4) amended by Nos 9925 s. 5(a), 86/1994 s. 47(zp), 52/1998 s. 99(1). (4) If an estate agent carries on business at more than one place the Director may give such directions as he thinks fit for separate audits of the accounts of trust money in respect of the business carried on at each place or for the acceptance by the auditor of the certificates of some person approved by the Director with respect to the examination of the accounts of trust money kept at any branch of the business. S. 64(5) amended by Nos 9925 s. 5(b), 86/1994 s. 47(zp), 52/1998 s. 99(1). (5) The Director may if in his opinion just cause exists for doing so vary or revoke any approval or direction granted or given by him under this section. (6) For the purpose of any audit or report under this section every estate agent shall as and when the auditor so requires produce to the auditor all such books papers accounts documents and securities in his possession custody or power as are reasonably necessary for the purpose of the audit and shall furnish the auditor with all such information and particulars as he reasonably requires. (7) The auditor may examine such books papers accounts documents and securities at any time either during or after the end of the period in respect of which the audit is made. S. 64(8) amended by No. 29/1989 s. 19(2). (8) The manager or other officer for the time being in charge of the authorised financial institution in which the agent has his trust account shall on request of the auditor produce all such books papers accounts documents and securities as are reasonably necessary for the purpose of the audit. S. 64(9) amended by No. 8/2003 s. 54(c). (9) The auditor's report shall be in the form approved by the Director and contain such particulars as are prescribed. (10) Every estate agent shall prepare and certify under his own hand and produce to the auditor a statement setting forth in detail particulars of— (a) moneys on the last day of the period to which the audit relates held by the agent for or on behalf of any other person; and (b) negotiable or bearer securities or deposit receipts in the name of the agent which represent money drawn from the agent's trust account and which are held by the agent on that day. (11) The auditor shall examine the statement and write on or attach to it a report of his examination in which he shall express his opinion as to whether or not the statement is correct and shall deliver the statement and the report to the agent. (12) The statement delivered pursuant to subsection (11) shall be retained by the agent and produced on demand to the auditor making the next succeeding audit of the agent's accounts together with a signed copy of the report of the last preceding audit. (13) Where the estate agent's accounts are being audited for the first time or where for any other reason no statement containing the particulars set out in subsection (10) and relating to the previous period of audit is available for the purpose of audit the agent shall in lieu thereof make out and produce to the auditor before the making of his report a statement containing the like particulars as to money and negotiable securities held on the first day of the period to which the audit relates. (14) Every statement made under subsections (10) and (13) shall be verified by the statutory declaration of the agent or, in the case of partnership, by the statutory declaration of one of the partners or, in the case of a corporation, by the statutory declaration of a director or the secretary thereof or of the person in effective control of the estate agency business of the corporation. (15) If an auditor in the course of auditing an estate agent's accounts discovers that the accounts are not kept in such a manner as to enable them to be properly audited or discovers any matter which appears to him to involve dishonesty or a breach of the law on the part of the agent, or discovers loss or deficiency of trust money or failure to pay or account for any such money or to comply with the provisions of this section, he shall— S. 64(15)(a) amended by Nos 9925 s. 5(a), 86/1994 s. 47(zp), 52/1998 s. 99(1). (a) forthwith send or deliver to the Director a report setting out the facts so discovered and deliver a signed copy of the report to the agent; and (b) set out the facts so discovered in his report of the result of the audit. S. 64(16) inserted by No. 103/2004 s. 39(1). (16) An auditor is not required to report a deficiency under this section if— (a) the deficiency was caused solely by an error by an authorised deposit-taking institution or by inadvertence; and (b) the deficiency is rectified within 2 business days of its discovery. S. 64A inserted by No. 10028 s. 37.