APES 310:: Dealing With Client Monies Fact Sheet

APES 310:
Dealing with Client Monies Fact Sheet

Objective
APES 310 Dealing with Client Monies (the Standard) sets out mandatory requirements and guidance for members in
public practice who deal with client monies or who act as an auditor of client monies.

Scope and application
APES 310, which is effective for engagements commencing on or after 1

October 2013, requires members in public
practice in Australia to adhere to its mandatory requirements when they deal with client monies or act as an auditor of
client monies. For members in public practice outside of Australia the provisions of APES 305 must be followed as long as
local laws and/or regulations are not contravened. The revised Standard supersedes the Standard issued in December
2010. The Standard does not apply where a member in public practice is acting as a trustee or under a power of attorney
as in these circumstances the member is not acting in a client relationship.

Fundamental responsibili ties of members
APES 310 requires members in public practice who deal with client monies or act as an auditor of client monies to comply
with APES 110 Code of Ethics for Professional Accountants (the Code) in respect of:

Section 100 - Introduction and Fundamental Principles
Section 130 Professional Competence and Due Care
Section 140 - Confidentiality
Section 220 - Conflicts of Interest
Section 280 Objectivity - All Services.

Professional obligations of a member in public practice who deals with client monies
Some of the general principles in relation to dealing with client monies require a member to:

comply with Section 270 Custody of Client Assets of the Code
only deal with client monies through a client bank account or a trust account and only in accordance with the
clients instructions
be accountable for all client monies and keep client monies separate from the members all other monies
implement appropriate internal controls and procedures in respect of the operation of trust accounts and client
bank accounts
not obtain any benefit from dealing with client monies without prior written authority from the client
only charge professional fees in respect of dealing with client monies in accordance with Section 240 Fees and
Other Types of Remuneration of the Code
comply with relevant legal and fiduciary duties when acting as a trustee or under a power of attorney
not be involved in any money laundering transactions or in the utilisation of the proceeds of crime or terrorist
funding.

Audit of a member in public practices compliance with this standard
A member in public practice must ensure that the members compliance with the requirements of the Standard is audited
annually within three months of the applicable year-end date and must appoint another member in public practice as
auditor of client monies to perform the audit.

APES 310:
Dealing with Client Monies Fact Sheet

Professional obligations of an auditor of a member in public practices compliance with this standard
A member in public practice who acts as an auditor of client monies is required to:

perform the audit and prepare the auditors report in accordance with auditing and assurance standards
comply with Section 291 Independence Other Assurance Engagements of the Code
report any deficiency of client monies to the members professional body within five business days upon becoming
aware of the deficiency
report to the members professional body within 10 business days of becoming aware of any material failure by a
member, uncorrected error reflected in a statement issued by a financial institution or circumstances where client
monies have not been transacted or maintained in accordance with this standard
retain relevant working papers for a period of at least seven years
obtain the written approval of the applicable professional body prior to resigning from the position of auditor of
client monies.

Refer to the Standard for information concerning:

definitions
public interest
professional competence and due care
confidentiality
opening a trust account
dealing with client monies
disbursement of client monies
documentation
conformity with international pronouncements.

Disclaimer
The above material is only general in nature and not intended to be specific to the readers circumstances. The material does not relieve you of your
obligation, as a member of CPA Australia, to ensure that you comply with professional standards. To keep up-to-date members should visit the APESB
website at apesb.org.au.

Copyright CPA Australia Ltd (CPA Australia) (ABN 64 008 392 452), 2013. All rights reserved. All trade marks and trade names are proprietary to
CPA Australia and must not be downloaded, reproduced or otherwise used without the express consent of CPA Australia. You may access and display
these materials on your computer, monitor or other video display device and make one printed copy of any whole page or pages for your personal use
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throughout the world), or as otherwise provided for herein, you may not use these materials in any manner without the prior written permission of the
copyright owner.
CPA Australia and the author have used reasonable care and skill in compiling the content of these materials. However, CPA Australia makes no
warranty as to the accuracy or completeness of any information contained therein nor does CPA Australia accept responsibility for any acts or omissions
in reliance upon these materials. These materials are intended to be a guide only and no part is intended to be advice, whether legal or professional. All
persons are advised to seek professional advice to keep abreast of any legal or other reforms and developments. To the extent permitted by applicable
law, CPA Australia, its employees, agents and consultants exclude all liability for any loss or damage claims and expenses including but not limited to
legal costs, indirect special or consequential loss or damage (including but not limited to, negligence) arising out of the information in the materials.
Where any law prohibits the exclusion of such liability, CPA Australia limits its liability to the resupply of the information.
Issued September 2013

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