All Authorised Entities need to submit either an annual Accountant's Report if they hold client money, or an Accounts Certificate, if they do not hold client money. The Accountant's Report or Accounts Certificate must cover a period of no more than 12 months and there must not be any gaps in the reporting periods.
An Accountant’s Report covers an examination of your accounts records to ensure compliance with the requirements of the CILEx Accounts Rules in respect of the management of client money.
Who can provide an Accountant's Report?
An accountant who is a member of an accountancy body incorporated by Royal Charter or the Association of Authorised Public Accountants, or a registered auditor, as defined in the CILEx Accounts Rules.
Purpose and benefits of an Accountant’s Report
An Accountant's Report is a key part of managing the risk for a legal practice because:
- Consumers have confidence that money is looked after properly.
- Insurers gain an external check on the processes to prevent the risk of fraud.
- You know you and your team are managing client money correctly.
Action for Authorised Entities
The requirements for an Accountant's Report or an Accounts Certificate are covered in sections 10 – 16 of the CILEx Accounts Rules.