SRA Audit Services at Jack Ross Chartered Accountants

Introduction Guide to SRA

At Jack Ross Chartered Accountants, we pride ourselves on delivering top-notch audit, accounting, and advisory services across numerous sectors and professions. Today, we spotlight a highly specialised service: SRA Client Money Audits. This comprehensive guide covers everything you need to know about SRA audits, their significance, and how our expert team can assist you throughout the process.

Who Requires an SRA Audit?

Suppose you are a solicitor or law firm operating in England and Wales and handle client money as part of your services. In that case, you are mandated to undergo an SRA client money audit.

Understanding SRA Accounts Rules and Client Money Audit

The Solicitors Accounts Rules, dictated by the Solicitors Regulation Authority (SRA), form part of their standards and regulations, last updated on 25th November 2019. These rules necessitate obtaining and submitting accountant’s reports, which incorporate the requirement for an annual audit of the firm’s client money.

Managing Money Belonging to Clients or Third Parties: What You Need to Know

Handling money that belongs to clients or third parties is a responsibility that comes with strict regulatory oversight, particularly for solicitors and law firms. It’s crucial to understand that such funds must be promptly deposited into a separate client money bank account. This is not just a best practice but a requirement under the Solicitors Regulation Authority (SRA) Accounts Rules. The aim is to ensure the highest level of transparency and trust between the firm and its clients or any third parties involved. Failing to adhere to these rules can result in severe penalties, including legal actions that could jeopardise the firm’s reputation and operations.

Reporting Requirements if You Hold Client Money

These regulations specify that an accountant—a member of one of the chartered accountancy bodies and either a registered auditor or working for one—must report on the firm’s compliance with the Accounts Rules. This report is provided in a format prescribed by the SRA and delivered to a firm representative.

Who can carry out the SRA audit?

An SRA (Solicitors Regulation Authority) audit is a specialised type of audit that requires a deep understanding of the legal sector and its regulatory requirements, particularly the SRA Accounts Rules. Therefore, only some accountants can carry out an SRA audit. According to the SRA regulations, the audit must be conducted by an accountant who is a member of one of the chartered accountancy bodies and is, or works for, a registered auditor.

The accountant must report on various aspects, such as the firm’s compliance with the Accounts Rules, the systems and controls in place, and the management of client money. The report is then provided to a firm representative in a format the SRA prescribes.

Firms like Jack Ross Chartered Accountants are well-equipped to carry out SRA audits thanks to a team of qualified accountants well-versed in the intricacies of SRA regulations and the legal sector. The aim is to ensure compliance and provide valuable insights into improving systems and processes for better financial management.

By choosing a qualified and experienced accountant to conduct your SRA audit, you ensure a seamless process that meets regulatory requirements and adds value to your law firm’s operational efficiency.

Areas Covered in the Audit

The accountant focuses on the following:

Ensuring adequate systems, controls, and records are in place within the firm and reconciled regularly.
Confirming client money is promptly deposited into a separate client money bank account.
Verifying money is withdrawn from the client account only for authorised purposes and when sufficient funds exist for a specific client.
Making sure client money is returned to the client promptly when there’s no longer a proper reason to hold those funds.
Correcting any rule breaches promptly upon discovery.

Report to the SRA Submission Guidelines

The Accountant’s Report must be obtained within six months of the end of the accounting period to which it pertains. This report must only be submitted to the SRA if it’s qualified to show non-compliance with the rules that put client money at risk.

The SRA Audit Process at Jack Ross

We strive to make your SRA audit as seamless and stress-free as possible. Our team works with you to gain access to your firm’s records, select audit samples, and gather necessary information in advance. We focus on a partnership approach, ensuring the audit doesn’t disrupt your firm’s daily operations.

Tools and Resources Required

We require access to bank statements, client ledgers, cashbooks, and client files for a comprehensive audit. We aim to work collaboratively with your team to complete the audit efficiently.

Communication and Transparency

We believe in open communication. Any potential issues identified during the audit process are discussed with you immediately so there are no unpleasant surprises later. We aim to understand your business and its transactions thoroughly.

How Jack Ross Adds Value to Your SRA Audit

At Jack Ross, we go beyond just meeting minimal reporting requirements. We closely examine a firm’s systems and controls, offering practical recommendations for improvement. Our team also works with you to develop systems ensuring client accounts are secure and compliant with the Accounts Rules.

Contact Us

If you’re a solicitor or law firm based in Manchester or the surrounding regions and are preparing for an upcoming SRA audit, contact our team at Jack Ross. We are committed to helping you navigate your SRA audit effortlessly, ensuring your client accounts are secure and compliant. Contact us online or by phone to find out how we can assist you.

What is the Solicitors Regulation Authority (SRA) Audit?

The SRA audit is a compliance assessment undertaken by the Solicitors Regulation Authority to assess whether a solicitor or law firm holds or receives client money according to their rules. It requires that firms obtain an accountant’s report from six months after the end of the period to which the report relates.

What are the requirements for obtaining an accountant's report?

A solicitor or law firm must obtain a qualified report from an independent accountant showing whether it has complied with the SRA rules relating to holding or receiving client money during the period the report relates to. If the accountant’s report is qualified in any respect, then the SRA may impose additional reporting requirements.

What if I fail to comply with SRA rules?

If you fail to comply with SRA rules regarding holding or receiving client money, you may be subject to disciplinary action and sanctions from the Solicitors Regulation Authority. In such cases, you may also have a requirement to obtain an accountant’s further report six months after the end of the accounting period if your initial accountant’s report was qualified in any respect.

Client Testimonials

Explore the success stories of audit clients we’ve helped achieve great things.

The Jack Ross Team has been an absolute delight. Professional, nice and fast during the Audit procedure. Thank you Jack Ross Team. Engaging with the Jack Ross Team for our audit was one of the best decisions we've made this fiscal year. I was particularly impressed with their swift and streamlined audit process. Unlike other firms that drag on for weeks, Jack Ross was able to conclude our audit in record time without cutting corners.

Their professionalism is unparalleled; from initial consultation to final report, every interaction was marked by courtesy, respect, and a deep understanding of our unique business needs.

But what surprised me most was their warmth and friendliness; they made a typically stressful process feel almost enjoyable. It's refreshing to work with a team that combines speed and efficiency with such high levels of customer service.

If you're looking for an audit service that respects your time without compromising on quality, then look no further than Jack Ross Audit.

Sofia Carlini

Financial Controller

Excellent service from the Jack Ross Audit Team. They gave us good advice and completed a very efficient audit. They have a friendly and competent team. I would surely recommend them.

I've always considered auditing a cumbersome process, but my experience with the Jack Ross Audit Team has completely changed my perspective. Their service was impeccable from start to finish. The team not only offered us invaluable advice to streamline our financial systems, but they also executed an extremely efficient audit that was far less intrusive than I've experienced in the past.

What truly sets Jack Ross Audit apart, however, is their team. Each member we interacted with was incredibly competent and genuinely friendly and approachable. They made us feel like a valued client rather than just another case file.

If you're unsure which accounting firm to choose for your audit, I can't recommend Jack Ross Audit highly enough. Their blend of professionalism, efficiency, and genuine care for their clients is rare in the financial world.