Select an active examiner from all registered external examiners of The Law Society of SA. Call 1300 133 244 for simple engagement process
Get started with your trust account audit
In South Australia, the term "designated person" is used instead of "external examiner." Adelaide law practices operating under the Law Society of South Australia regulations must engage approved designated persons for annual trust account examinations under SA's Legal Practitioners Act 1981.
While most Australian states use "external examiner," South Australia uses "designated person" to describe the independent auditor who examines law firm trust accounts. The role and responsibilities are essentially the same - providing independent verification of trust account compliance.
Every Adelaide law practice receiving trust money must engage a Law Society of SA approved designated person for annual examinations. The examination period is April 1 to March 31 each year, and the report must be submitted by May 31.
Adelaide has a strong boutique legal market with many specialized firms. Designated persons need to understand diverse practice areas from wine industry law to defense contracting.
Many Adelaide firms serve regional SA, handling rural property, agricultural businesses, and regional commercial matters requiring understanding of regional trust account management.
Adelaide's steady property market creates consistent conveyancing work. Designated persons should be familiar with PEXA and SA-specific property settlement procedures.
SA has some unique trust account regulations. Designated persons must be thoroughly familiar with Law Society of SA requirements, which may differ from other states.
Adelaide Tip: Adelaide's smaller legal market means fewer designated persons available. Early booking (July-August) is essential to secure your preferred examiner during the busy season.
Must be registered with the Law Society of South Australia as an approved designated person. Registration requirements are specific to SA and may differ from other states.
Must be a registered company auditor or member of recognized professional accounting bodies (CPA, CA ANZ, IPA) with relevant audit experience.
Must maintain independence from your law practice - cannot provide bookkeeping or other services that would compromise their objectivity.
External Examiner connects Adelaide law firms with Law Society of SA approved designated persons who understand South Australian regulations and local market requirements. Submit your specifications and receive quotes from qualified professionals.
Request Designated PersonIn South Australia, the term "designated person" refers to the independent professional who examines law firm trust accounts. This role is unique to SA, whereas other Australian states use terms like "external examiner" or "trust account auditor." Despite the different terminology, the function and legal requirements are essentially identical.
The Law Society of South Australia mandates that all law practices receiving or holding client trust money must engage a designated person for annual examination. This requirement exists under the Legal Practitioners Act 1981 and associated regulations, ensuring that client funds are properly managed and accounted for at all times.
Designated persons provide an independent verification that your trust account complies with all Law Society of SA requirements. Their examination protects both your clients and your practice from potential fraud, mismanagement, or regulatory breaches.
Designated persons must maintain complete independence from your law practice. They cannot provide bookkeeping, accounting, or other services that might compromise their objectivity in the examination process.
South Australia's trust account regulatory framework operates under the Legal Practitioners Act 1981, the Legal Practitioners Regulations 2014, and guidelines issued by the Law Society of SA. Understanding these requirements is essential for maintaining compliance and avoiding penalties.
Any law practice in South Australia that receives or holds any amount of trust money during the financial year must engage a designated person. This applies regardless of whether the amount is large or small, or whether the transactions are frequent or occasional.
The requirement applies to all practice sizes, from sole practitioners operating from home offices to large commercial firms with multiple offices across South Australia.
Law firms based in other states but conducting business in South Australia must also comply with SA trust account requirements when handling client funds in this jurisdiction.
Failing to complete your designated person examination on time can result in serious consequences, including fines, conditions on your practising certificate, or even suspension from practice. Mark these deadlines in your calendar well in advance.
Understanding the examination process helps you prepare effectively and ensures a smooth, efficient examination. Here's what to expect when engaging a designated person for your Adelaide law practice.
Contact your chosen designated person to discuss your requirements. They'll provide an engagement letter outlining the scope of work, timeline, and fees. Ensure they are registered with the Law Society of SA before proceeding.
Gather all relevant documents including bank statements, trust ledger reports, client matter records, reconciliation reports, and any correspondence with the Law Society. Your designated person will provide a comprehensive checklist.
The designated person will conduct their examination, which typically involves visiting your premises to review original documentation, verify reconciliations, and test internal controls. This usually takes 1-3 days depending on practice size.
The examination includes testing sample transactions, verifying client authorisations, checking bank reconciliations, and confirming compliance with Law Society of SA rules. Any discrepancies are noted for your attention.
Once the examination is complete, your designated person will discuss their findings with you. This is an opportunity to address any issues and implement improvements to your trust account procedures.
The designated person prepares a formal report for the Law Society of SA, certifying whether your trust account complies with regulatory requirements. This report must be submitted by May 31.
You'll also receive a management letter detailing any recommendations for improving your trust accounting procedures, regardless of whether any issues were found during the examination.
Book your designated person 2-3 months before the March 31 deadline. Adelaide has a limited number of registered designated persons, and they book up quickly during the busy pre-deadline period.
Selecting the right designated person is crucial for ensuring compliance and maintaining the integrity of your trust account. Here are the key factors Adelaide law practices should consider when making their choice.
Verify the person is currently registered with the Law Society of South Australia as an approved designated person. Only registered practitioners can conduct the examination.
Look for experience examining law firm trust accounts specifically. General auditing experience is valuable, but understanding SA legal industry nuances is essential.
Ensure the designated person doesn't provide bookkeeping, accounting, or other services to your practice that could compromise their independence.
Confirm they can complete the examination within your required timeframe, especially if you're approaching the May 31 deadline.
Maintaining compliance with Law Society of SA trust account requirements is an ongoing responsibility. Understanding these requirements helps you stay compliant and avoid penalties.
Maintain a dedicated trust account separate from your practice's operating account. All client funds must be deposited into this account and cannot be commingled with practice money.
Prepare and review trust account reconciliations at least monthly. These must show the relationship between the trust ledger, bank statements, and any individual client balances.
Ensure all trust account withdrawals are properly authorised by the responsible practitioner. Maintain written authorisations for all disbursements from trust funds.
Maintain comprehensive records of all trust transactions for at least 7 years. This includes deposit slips, withdrawal authorisations, client matter records, and reconciliation reports.
Engage a designated person to conduct an annual examination of your trust account and submit the required report to the Law Society of SA by May 31 each year.
| Issue | Consequence |
|---|---|
| Late examination report | Penalties, conditions on practising certificate |
| Unreconciled trust account | Failure to pass examination, potential disciplinary action |
| Commingling funds | Serious breach, potential suspension |
| Unauthorised withdrawals | Regulatory breach, possible criminal implications |
| Inadequate record keeping | Cannot demonstrate compliance, examination failure |
Understanding the Adelaide legal market helps you select a designated person who understands the unique characteristics and challenges of practicing law in South Australia.
Adelaide and South Australia are globally recognised for wine production. Many local law firms specialise in wine industry law, including vineyard acquisitions, distribution agreements, and export compliance. Designated persons should understand the unique trust requirements of this sector.
Adelaide's growing defence and aerospace industry creates specialised legal work. With major projects like the Attack-class submarine program, local firms handle significant commercial transactions requiring careful trust account management.
South Australia's healthcare sector is a significant employer. Law firms working with hospitals, aged care facilities, and medical practices often handle large trust accounts with complex compliance requirements.
South Australia's agricultural sector remains vital to the economy. Rural property transactions, water rights, and agribusiness deals form a substantial part of many regional and city firms' work.
Adelaide serves as the gateway to regional South Australia. Many law firms maintain practices that span both the city and regional areas, creating unique trust account challenges including:
Proper preparation ensures your examination proceeds smoothly and efficiently. Taking time to organize your records before the designated person arrives saves time and reduces stress.
Confirm your engagement with your chosen designated person. Ensure they understand your practice size and any special circumstances. Request their document checklist and timeline expectations.
Start gathering the documents your designated person will need. This includes bank statements, trust ledger reports, client matter records, reconciliation working papers, and any correspondence with the Law Society.
Ensure all trust account reconciliations are up to date. Review them for any outstanding items that need investigation. Address any discrepancies before the examination begins.
Document your trust account procedures, including who has access, authorisation processes, and review procedures. Prepare to discuss these controls with your designated person.
Ensure staff responsible for trust accounting are available during the examination. Brief them on what to expect and what questions they may be asked.
Common questions about designated persons and trust account examinations in Adelaide and South Australia.
Yes. If your Adelaide law practice receives or holds any trust money during the financial year, you must engage a Law Society of SA registered designated person for an annual examination. This requirement applies regardless of the volume of trust transactions or the size of your practice.
In South Australia, the examination must cover the period April 1 to March 31, and the report must be submitted to the Law Society of SA by May 31 each year. Failing to meet this deadline can result in penalties and conditions on your practising certificate.
Costs vary based on practice size and complexity: Sole practitioners typically pay $1,500-$3,500, medium firms $3,000-$5,500, and large firms $5,000-$15,000+. Factors affecting cost include transaction volume, practice complexity, and timing. Early booking typically secures better rates.
Failing to submit your examination report by May 31 is a breach of Law Society of SA requirements. Consequences may include fines, conditions placed on your practising certificate, or in serious cases, suspension from practice. It's essential to engage your designated person well in advance of the deadline.
Yes, you can engage the same designated person consecutively. Many firms do this for continuity and efficiency. However, ensure they remain independent and don't provide other services that could compromise their objectivity. You can also change designated persons if you wish to do so.
You'll need: bank statements for all trust accounts, trust ledger reports, client matter records, monthly reconciliation working papers, deposit slips and withdrawal authorisations, and any correspondence with the Law Society of SA. Your designated person will provide a detailed checklist.
External Examiner connects Adelaide law firms with Law Society of SA approved designated persons. Submit your specifications and receive quotes from qualified professionals.
Registered with Law Society of SA
Experienced with SA Law Firms
Competitive Pricing
Ready to begin your external examination? Download our South Australia Law Society compliant engagement letter to get started.