LEGAL PROFESSION (ACCOUNTANT

Requested version was=20 24 Feb 2011; Closest available version is 31 May 2010; Generated on 24 = Feb 2011=20 08:41:07(GMT+8).

Front = Page

[ Jump to: Front = Page / Arrangement=20 of Provisions / Actual=20 Provisions ]

LEGAL PROFESSION ACT

(CHAPTER 161, SECTION 73(4))

LEGAL PROFESSION (ACCOUNTANT=92S REPORT) RULES

History

1990 REVISEDEDITION

1999 REVISEDEDITION0

R10
2010 REVISED=20 = EDITION

[8th August 1985]
Arrangement of=20 Provisions

[ Jump to: Front=20 Page / Arrangement of Provisions / Actual=20 = Provisions]

1=20 Citation
2=20 Definitions
3=20 Qualified accountant
4=20 Duties of accountant
5=20 Privilege
6=20 Accountant=92s report
7=20 Where accountant=92s report unnecessary
8=20 Accounting period for solicitor exempted under rule 7 obliged to = deliver=20 first report
9=20 Accounting period for other solicitors
10=20 Requirements of Council =97 how made
11=20 Notice given by Council to accountants
12=20 Power to waive provisions

THE SCHEDULE
LEGAL PROFESSION ACT (CHAPTER=20 161)

Actual = Provisions

[ Jump to: Front=20 Page / Arrangement=20 of Provisions/ Actual Provisions=20 ]

LEGAL PROFESSION ACT

(CHAPTER 161, SECTION 73(4))

LEGAL PROFESSION (ACCOUNTANT=92S REPORT) RULES

[8th August 1985]

Citation
1.These=20 Rules may be cited as the Legal Profession = (Accountant=92s Report)=20 Rules.

Definitions
2.In=20 these Rules =97

"approved finance company" means any finance = company=20 registered under the Finance Companies Act (Cap. 108) which is = approved=20 by the Minister to accept deposits of client=92s money for the = purposes=20 of these Rules;

"bank" has the same meaning as in the Banking Act = (Cap.=20 19);

"bank statement" means a statement issued by a bank = in=20 respect of any client account maintained at such bank, and = includes a=20 statement issued by an approved finance company in respect of a = client=20 account maintained at such finance company;

=93client=94, =93client account=94, =93client=92s = money=94 and=20 =93trust money=94 have the meanings respectively = assigned to them by=20 the Legal Profession (Solicitors=92 Accounts) Rules (R 8);

"Public Accountants Oversight Committee" means the = Public=20 Accountants Oversight Committee appointed under section 4 of = the=20 Accountants Act (Cap. 2);

"trust account" has the meaning assigned to it by = the Legal=20 Profession (Solicitors' Trust Accounts) Rules (R 9).

Qualified=20 accountant
3.=97(1) An accountant shall be = qualified=20 to give an accountant=92s report on behalf of a solicitor if =97

(a) he is practising in Singapore and is = authorised to=20 practise as a public accountant under the Accountants Act;

(b) he has neither been at any time during the=20 accounting period, nor subsequently, before giving the report, = become =97

(i) a partner or an employee of the solicitor or = of any=20 partner of his; or

(ii) a partner, a director, a member or an = employee of a=20 limited liability law partnership, a law corporation, a = Joint Law=20 Venture, a constituent foreign law practice (of a Joint = Law Venture),=20 a Qualifying Foreign Law Practice or a licensed foreign law = practice=20 in which the solicitor is a partner or director; and

(c) he is not subject to a notice of = disqualification under=20 paragraph (2) or under rule 11A(4) of the Legal = Profession (Solicitors=92=20 Accounts) Rules.

(2) Where =97

(a) the Public Accountants Oversight Committee = has made a=20 disciplinary order against a public accountant under = section 52(2) of=20 the Accountants Act (Cap. 2) or an equivalent provision under = the=20 repealed Accountants Act (Cap. 2, 2001 Ed.); or

(b) the Council is satisfied that a solicitor = has not=20 complied with the provisions of the Legal Profession (Solicitors=92=20 Accounts) Rules (R 8) in respect of matters not specified in an = accountant=92s report and that the accountant who gave the = report was=20 negligent in giving the report, whether or not an application = be made=20 for a grant out of the Compensation Fund,

the Council may, in its discretion, at any time notify the=20 accountant that he is not qualified to give an accountant=92s = report. =20

(3) The Council may give notice, of the fact that an=20 accountant is not qualified to give an accountant=92s report, to = any=20 solicitor who appears to the Council to be likely to engage or = employ=20 that accountant for the purpose of giving an = accountant=92s report or to be=20 a book-keeper for the purposes of rule 11(8) of the Legal = Profession=20 (Solicitors' Accounts) Rules. =20

(4) After the accountant has been notified by = the Council=20 that he is not qualified to give an accountant=92s report and = until such=20 notice of disqualification has been withdrawn by the Council, he = shall=20 not =97

(a) be qualified to give an accountant=92s report; = and

(b) be engaged or employed as a book-keeper for=20 the purposes of rule 11(8) of the Legal Profession = (Solicitors=92=20 Accounts) Rules.

(5) In coming to its decision, the Council shall = (if the=20 decision is based on a matter referred to in paragraph (2)(a)) = take=20 into consideration any observation or explanation made or given = by the=20 accountant or on his behalf by the Public Accountants Oversight=20 Committee.

Duties of=20 accountant
4.=97(1) For the purpose of giving = an=20 accountant=92s report, an accountant shall ascertain from the = solicitor=20 particulars of all accounts (excluding trust accounts) maintained = by the=20 solicitor at any bank or with any approved finance company kept,=20 maintained or operated by the solicitor in connection with his = practice=20 at any time during the accounting period to which his report=20 relates and, subject to paragraph (2), make the following = examinations=20 of the books, accounts and other relevant documents of the = solicitor:

(a) examine the book-keeping system in every = office of the=20 solicitor so as to enable the accountant to verify that such = system=20 complies with rule 11 of the Legal Profession (Solicitors=92=20 Accounts) Rules (R 8), and is so designed that =97

(i) an appropriate ledger account is kept for=20 each client;

(ii) such ledger accounts show separately from=20 other information particulars of all clients=92 money=20 received, held or paid on account of each client;

(iii) transactions relating to clients=92 = money and any=20 other money dealt with through a client account are = recorded in the=20 solicitor=92s books so as to distinguish such = transactions from=20 transactions relating to any other money received, held = or paid by=20 the solicitor;

(b) make test checks of postings to clients=92=20 ledger accounts from records of receipts and payments of = clients=92=20 money and make test checks of the costs of such accounts and=20 records;

(c) compare a sample of lodgments into and = payments from=20 the client account as shown in bank statements with the=20 solicitor=92s records of receipts and payments of clients=92 = money;

(d) enquire into and test check the system of=20 recording costs and of making transfers in respect of costs = from the=20 client account;

(e) make a test examination of such documents as = he shall=20 request the solicitor to produce to him with the object = of ascertaining=20 and confirming =97

(i) that the financial transactions, (including=20 those giving rise to transfers from one ledger account to = another)=20 evidenced by such documents, are in accordance with the Legal = Profession (Solicitors=92 Accounts) Rules; and

(ii) that the entries in clients=92 = ledger accounts reflect=20 those transactions in a manner complying with the Legal = Profession=20 (Solicitors=92 Accounts) Rules;

(f) extract (or check extractions of) balances = on the=20 clients=92 ledger accounts during the accounting period under = review at=20 not fewer than 2 dates selected by the accountant (one of which = may be=20 the last day of the accounting period), and at each such date = =97

(i) compare the total as shown by such ledger = accounts of=20 the liabilities to the clients including those for whom = trust money=20 is held in the client account, with the cash book balances on = client=20 account, clients=92 fixed deposit accounts with banks and = approved=20 finance companies including those for whom trust money is = held and=20 other fixed deposit accounts; and

(ii) reconcile such cash book balances and fixed=20 deposit with confirmations obtained by the accountant direct = from the=20 bank or approved finance company;

(g) satisfy himself that reconciliation = statements have=20 been kept in accordance with rule 11(4) of the Legal=20 Profession (Solicitors=92 Accounts) Rules (R 8);

(h) make a test examination of the clients=92 = ledger accounts=20 in order to ascertain whether payments from the client account = have=20 been made on any individual account in excess of money held on = behalf=20 of that client;

(i) peruse such office ledger and cash accounts = and bank=20 statements as the solicitor maintains with a view to=20 ascertaining whether any client=92s money has not been paid = into a=20 client account; and

(j) ask for such information and explanations as = he may=20 require arising out of sub-paragraphs (a) to = (i).

(2) Nothing in paragraph (1) shall require the accountant = =97

(a) to extend his enquiries beyond the=20 information contained in the relevant documents relating to any = client=92s matter produced to him supplemented by such = information and=20 explanations as he may obtain from the solicitor;

(b) to enquire into the stocks, shares, other = securities or=20 documents of title held by the solicitor on behalf of his=20 clients; or

(c) to consider whether the books or accounts of=20 the solicitor have been properly written up in accordance with=20 rule 11 of the Legal Profession (Solicitors=92 Accounts) = Rules at=20 any time other than the times as at which his examination = of those=20 books and accounts takes place.

(3) If after making an examination under = paragraph (1), it=20 appears to the accountant that there is evidence that the Legal=20 Profession (Solicitors=92 Accounts) Rules (R 8) have not been = complied=20 with, the accountant shall make such further examination as may = be=20 necessary in order to complete his report with or=20 without qualification.

Privilege
5.=97(1)&n= bsp;Nothing=20 in these Rules shall deprive a solicitor of the right on the = grounds of=20 privilege as between solicitor and client to decline to produce = to the=20 accountant any document which the accountant may consider it = necessary=20 for him to inspect for the purposes of his examination in = accordance=20 with rule 4. =20

(2) Where the solicitor so declines, the = accountant shall=20 qualify his report to that effect setting out the circumstances. =

Accountant=92s=20 report
6.=97(1) An accountant=92s report = delivered by=20 a solicitor or a partner or director of a limited liability=20 law partnership or law corporation under these Rules shall be in=20 the form set out in the Schedule or in a form to the like effect=20 approved by the Council. =20

(2) The accountant=92s report must include the = identification=20 number of the accountant giving the report.

Where accountant=92s = report=20 unnecessary
7.The Council will, in each practice = year, be=20 satisfied that the delivery of an accountant's report under=20 section 73(1) of the Act is unnecessary and shall not require = evidence=20 of that fact, in the case of any solicitor who =97

(a) does not hold a practising certificate and =97

(i) has never held one; or

(ii) having held one, has not practised in any=20 Singapore law practice at any time during the accounting = period=20 ending on the date upon which he ceased to practise, or has = delivered=20 an accountant=92s report in respect of his practice in a = Singapore law=20 practice covering the accounting period ending on the date = upon which=20 he ceased to practise and to hold or receive client=92s = money; or

(b) holds a current practising certificate =97

(i) for the first time;

(ii) for the first time, after having for 12 = months or=20 more ceased to do so; or

(iii) has satisfied the Council that =97

(A) the Legal Profession (Solicitors=92 = Accounts) Rules=20 (R 8) are not applicable to him because he is employed = only as an=20 assistant solicitor by another solicitor or firm of = solicitors or=20 limited liability law partnership or law corporation and = has not,=20 during the period to which the said application relates,=20 practised alone or in partnership or been held out to the = public as=20 a partner or director of a firm of solicitors, limited = liability=20 law partnership or law corporation or held or received = client=92s=20 money; or

(B) the Legal Profession (Solicitors=92 = Accounts) Rules=20 are not applicable to him because during the period to = which the=20 said application relates he has not practised as a = solicitor alone=20 or as a partner or director of a firm of solicitors,=20 limited liability law partnership or law corporation or = been held=20 out to the public as a partner or director of a firm of = solicitors,=20 limited liability law partnership or law corporation or has = not=20 held or received client=92s money.

Accounting period for = solicitor=20 exempted under rule 7 obliged to deliver first=20 report
8.=97(1) In the case of a solicitor who = =97

(a) becomes under an obligation to deliver his=20 first accountant=92s report; or

(b) having been exempt under rule 7 from = delivering an=20 accountant=92s report in the preceding practice year, becomes = under an=20 obligation to deliver an accountant=92s report,

the accounting period shall begin on the date upon which he=20 first held or received client=92s money, or, after such=20 exemption, began again to hold or receive client=92s money. =

(2) The accounting period referred to in = paragraph (1) may=20 cover less than 12 months and shall in other respects comply with = the=20 requirements of section 73(3) of the Act. =20

(3) In the case of a solicitor retiring from = practice who,=20 having ceased to hold or receive client=92s money, is under an = obligation=20 to deliver his final accountant=92s report, the accounting period = =97

(a) shall end on the date upon which he ceased = to hold or=20 receive client=92s money;

(b) may cover less than 12 months; and

Accounting period for = other=20 solicitors
9.In the case of a solicitor who =97

(a) was not exempt under rule 7 from delivering=20 an accountant=92s report in the preceding practice year; = and

(b) since the expiry of the accounting period = covered by=20 his last accountant=92s report has become, or ceased to be, a = member of a=20 firm of solicitors or a partner or director of a limited = liability law=20 partnership or a law corporation,

the accounting period may cover less than 12 months and = shall in=20 all other respects comply with the requirements of section = 73(3) of the=20 Act.

Requirements of Council = =97=20 how made
10.Every requirement to be made by the = Council=20 of a solicitor under these Rules =97

(a) shall be made in writing under the hand of = the Director=20 or a member of the Council designated by the Council for the = purpose;=20 and

(b) may be served on the solicitor by sending = the document=20 by registered post to his usual or last known address.

Notice given by Council = to=20 accountants
11.Every notice to be given by the = Council to an=20 accountant under these Rules =97

(a) shall be in writing under the hand of the = Director or a=20 member of the Council designated by the Council for this=20 purpose; and

(b) may be served on the accountant by sending = the notice=20 by registered post to the address of the accountant as shown on = the=20 accountant=92s report or appearing in the Register of Public = Accountants=20 kept and maintained under the Accountants Act (Cap. = 2).

Power to waive=20 provisions
12.The Council may, if it thinks fit in = any=20 particular case, waive any of the provisions of these Rules in = writing,=20 subject to such terms and conditions as the Council may = impose.

THE SCHEDULE

Rule 6(1)

LEGAL PROFESSION ACT
(CHAPTER 161)

LEGAL PROFESSION=20
(ACCOUNTANT=92S REPORT)
RULES

ACCOUNTANT=92S = REPORT
FOR=20 SOLICITOR IN LAW FIRM, LIMITED LIABILITY
LAW PARTNERSHIP OR = LAW=20 CORPORATION

3D2010-SLREVED-161-R-10-1275345796-0001=20

3D2010-SLREVED-161-R-10-1275345796-0002=20

3D2010-SLREVED-161-R-10-1275345796-0003=20

[G.N. Nos. S 204/85; S325/85; S 209/87; S = 382/98; S=20 75/2000;S 467/2001; S 108/2004; S 661/2006; S479/2008] =

Requested version was=20 24 Feb 2011; Closest available version is 31 May 2010; Generated on 24 = Feb 2011=20 08:41:07(GMT+8).

[ Jump to: Front = Page / Arrangement=20 of Provisions / Actual=20 Provisions ]

LEGAL PROFESSION ACT

(CHAPTER 161, SECTION 73(4))

LEGAL PROFESSION (ACCOUNTANT=92S REPORT) RULES

1990 REVISEDEDITION

1999 REVISEDEDITION0

R102010 REVISED=20 = EDITION

[ Jump to: Front=20 Page / Arrangement of Provisions / Actual=20 = Provisions]

[ Jump to: Front=20 Page / Arrangement=20 of Provisions/ Actual Provisions=20 ]

LEGAL PROFESSION ACT

(CHAPTER 161, SECTION 73(4))

LEGAL PROFESSION (ACCOUNTANT=92S REPORT) RULES

THE SCHEDULE

LEGAL PROFESSION ACT(CHAPTER 161)

LEGAL PROFESSION=20 (ACCOUNTANT=92S REPORT)RULESACCOUNTANT=92S = REPORTFOR=20 SOLICITOR IN LAW FIRM, LIMITED LIABILITYLAW PARTNERSHIP OR = LAW=20 CORPORATION

[ Jump to: Front=20 Page / Arrangement=20 of Provisions/ Actual=20 Provisions=20 ]

R10
2010 REVISED=20 = EDITION

LEGAL PROFESSION ACT
(CHAPTER 161)

LEGAL PROFESSION=20
(ACCOUNTANT=92S REPORT)
RULES

ACCOUNTANT=92S = REPORT
FOR=20 SOLICITOR IN LAW FIRM, LIMITED LIABILITY
LAW PARTNERSHIP OR = LAW=20 CORPORATION