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notes is not a legal one and, accordingly, is subject
to any decisions of bodies which may have to con
strue them under statutory powers.
NOTES
Regulation 2—
Banks in which client's money may be lodged :
Unless a client otherwise directs, a solicitor is
not permitted to lodge client's money in any bank
other than those listed in the First Schedule to
the Regulations.
Regulation 4—
"Unnecessary delay" in lodging client's money :
The question of unreasonable delay is a matter
for the accountant having regard to all the cir
cumstances including whether the money is held
in cash or in the form of cheques but it is con
sidered that lodgments should not be less frequent
than weekly and in certain circumstances the in
terval should be shorter. The decision as to
whether a particular certificate should be qualified
by reference to delay in making a lodgment is a
matter for the discretion of the accountant having
regard to the facts of the case.
Withholding Money from client accounts :
Regulations paragraph 4 (e) provides that the
Council of the Incorporated Law Society may on
application by the solicitor authorise him to with
hold specified monies from the client account.
This provision has never been operated and is un
likely to arise. It is intended to provide for unfore
seen circumstances e.g. a client account balance
being insufficient to meet all the solicitor's obliga
tions towards clients in which event new clients
might suffer loss if their monies were paid into the
account. The Council are empowered to give
specific directions with regard to clients' monies
in such cases.
Regulation 5—
Withdrawal of client's money for payment of
costs :
If any question arises as to the regularity of a
withdrawal for costs, then if a statement has been
furnished to the client showing such withdrawal
and if there is no objection to such statement by
the client the withdrawal will be deemed to have
been in order.
Regulation 8 (a)—
Drawing of Costs by Solicitor-Trustee :
Where the instrument setting up the trust con
tains the usual clause authorising payment of costs
to the solicitor-trustee the costs may be withdrawn
by the solicitor after ascertainment in accordance
with the terms of the instrument, being money
properly required for a payment in the execution
of the trust.
Regulation 10 (2) —
Submission of Accountant's Certificate by Solici
tors in Partnership :
In the case of a firm that they are named in
the certificate.
Regulations 11 and 12—
Accountants' Certificates Form A and B—Nature
and Extent of Accountant's examination :
The accountant's certificate in Form A provides
for two test checks at dates selected by the
accountant. The books would have to be balanced
as of each date. The Society see no objection to
advance notification by the accountant to the
Solicitor that the books should be balanced at the
appointed dates followed by an inspection by the
accountant and comparison with the bank state
ments carried out at a later date.
The accountant's certificate in Form B is signed
after a normal audit carried out in accordance
with the accepted auditing procedure.
It is not envisaged that an accountant, in order
to furnish a certificate in the form of either A or
B, will be required to carry out a complete
examination of all books, vouchers, etc., notwith
standing that the wording of certificate B ("have
examined the books, accounts and documents")
might indicate otherwise. The accountant is en
titled to adhere to normal auditing practice and
the accountant's certificate does not necessarily en
dorse the complete integrity of the solicitor con
cerned. For instance, the complete omission of
certain items from the books is unlikely to be dis
covered during the course of a normal examina
tion. It is anticipated that the extent of the
examination required to furnish either certificate
A or B will not be materially different.
Qualifications on Certificate :
Irregularities appearing from the investigation,
if serious, must be noted as qualifications on the
accountant's certificate. Minor irregularities which
in the opinion of the accountant are not due to
any dishonesty or serious neglect may be dis
regarded provided that no loss or damage has
resulted. This is a matter for the discretion of the
individual accountant.
Regulation 15—
Books and Accounts :
A strict interpretation need not be taken in
regard to the minimum books which a solicitor
must keep as described in Regulation 15 (3). This
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