Stricter rules for accountants handling client money
Accountants who undertake transactions on behalf of their clients will soon be subject to even stricter requirements introduced by the Accounting Professional and Ethical Standards Board (APESB).
The new standard, ‘Dealing with Client Monies’, aims to broaden accountants’ obligations when it comes to client monies.
Among the changes, audit requirements will soon extend to client bank accounts as well as trust accounts, while the definitions of ‘monies’ and ‘personnel’ have been broadened to provide more clarity.
APESB chairman Kate Spargo said the new policy was in the public interest because it would foster greater client trust in accountants who managed their transactions.
“The clarity of the standard has also been improved with the separation of professional obligations of accountants dealing with client monies from auditors’ obligations,” she said.
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