SCHEDULE OF PROFESSIONAL SERVICES - SCHEDULE OF PROFESSIONAL SERVICES: SRA ACCOUNTS RULES COMPLIANCE (SOLICITOR)
The purpose of this schedule to our engagement letter is to set out the basis on which we are to report on your compliance with the Solicitors Regulation Authority (SRA) Accounts Rules 2011 for the period up to 24 November 2019, the Solicitors Regulation Authority (SRA) Accounts Rules for the period from 25 November 2019 and section 34 of the Solicitors Act 1974.
1. YOUR RESPONSIBILITIES
1.1 As solicitors you are responsible for ensuring that for the period up to 24 November 2019 the firm maintains the accounting records required by the SRA Accounts Rules 2011 and for the period from 25 November 2019 the firm maintains the accounting records required by the SRA Accounts Rules. In addition, you are responsible for ensuring that all dealings in client money are dealt with in accordance with those rules.
1.2 In accordance with the section 34 of the Solicitors Act 1974 and section 5, schedule 2 of the Administration of Justice Act 1985 we understand that you have waived your right to confidentiality and that we should report directly to the SRA in certain circumstances. We understand that you will confirm these matters in your reply to this letter.
2. OUR RESPONSIBILITIES
2.1 The SRA Accounts Rules 2011 require us to report to you each year whether in our opinion you have complied with rules 1, 7, 13, 14, 17, 18, 20, 21, 27 and 29 and also rules 8, 9, 10, 15, 16 and 19 where applicable.
The SRA Accounts Rules effective from 25 November 2019 require us to report to you each year whether in our opinion you have complied with rules 2 to 6, 8 to 10 and 13.
2.2 We will qualify our report, where in our professional judgement, there is a significant breach and / or significant weaknesses in the firm’s systems and controls which put client money at risk. We will provide details of the significant breach and/or significant weaknesses in firm’s systems and controls which put client money at risk to the SRA in their prescribed form. This will include sufficient detail to allow the SRA to understand our judgement.
2.3 To provide our report we shall undertake whatever tests and examinations of your records we consider appropriate. Our work will take into account the SRA’s Guidance to Reporting Accountants and firms on planning and completion of the annual Accountant’s Reports, under Rule 32A of the SRA Accounts Rules 2011 for the period up to 24 November 2019 and the SRA’s Guidance: Planning for and completing an accountant’s report for the period from 25 November 2019.
We do not undertake specific work to identify limitations in your systems or any irregularities on the part of your employees, beyond the work required to give the confirmations mandated on the AR1. However, we may advise you of limitations which we may discover during the course of our work.
2.4 Our report will be in the standard form required by the SRA. If the report is qualified it is your responsibility to submit it to the SRA within six months of your accounting period end. However, if instructed by you, we will submit the report on your behalf.
Updated June 2020