What happens when a Law Society audit starts when the trust reconciliations are not current?
If the trust reconciliations are not current, both the Law Society and the law firm are unable to ascertain whether the trust assets are sufficient to meet the trust obligations of the law firm. Therefore, without proof of the completeness of the trust assets, the law firm may be prejudicing clients by making payments from their trust bank accounts. The Law Society will ask the members of the law firm to sign an undertaking not to use the law firm trust bank accounts until such time as the bank accounts are reconciled and no trust shortages exist within the client trust ledger accounts.
