Your auditor is a key resource…. are you using them? Just think of them as a close friend with detailed knowledge of the legislation in your state.
They can help with just about any situation you come across in the real estate industry. They will provide advice on any unusual transaction to help ensure your agency and your trust account remain compliant.
Staying in touch with your auditor gives them confidence knowing you will discuss anything unusual with them prior to your audit.
Preparing for your auditor will not only assist them, it will give you an opportunity to review your trust and perhaps also some of your office systems and processes.
Try this checklist to make this year’s audit a stress-free process:
Read-only access will do.
This is ideally completed regularly, if not daily.
Auditors and the relevant authority in your state both love to see your trust is reconciled when they visit.
This is a sign of a well-managed trust account.
Provide your auditor with copies of your bank statements. These can be digital copies.
Your auditor will randomly check your property files. You want to ensure you have all relevant documents for each property. Ideally, you have these saved in your Property software
- Executed Contract of Sale
- Management & Sale Authority Agreements
- Condition Reports
- Bond Receipts
- Marketing Schedule
- Other relevant compliance requirements as per your state.
Each employee file should contain each of the following:
- Copy of the employee’s qualifications
- Registration with the relevant body for your state
- Police Check
A copy of your Registration with the relevant body for your state. A digital copy will suffice.
Review and save any notes to adjustments or corrections made to your trust account during the month and make these available to your auditor on request.