The Gazette 1967/71

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 "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setting up the trust con tains the usual clause authorising payment of costs to the solicitor-trustee the costs may be withdrawn the Regulations. Regulation 4—

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 75