APES 310

Dealing with Client Monies Fact Sheet

APES 310 Dealing with Client Monies (the Standard) sets out mandatory requirements and guidance for members in
public practice who deal with client monies or who act as an auditor of client monies.

Scope and application
APES 310, which is effective for engagements commencing on or after 1

October 2013, requires members in public
practice in Australia to adhere to its mandatory requirements when they deal with client monies or act as an auditor of
client monies. For members in public practice outside of Australia the provisions of APES 305 must be followed as long as
local laws and/or regulations are not contravened. The revised Standard supersedes the Standard issued in December
2010. The Standard does not apply where a member in public practice is acting as a trustee or under a power of attorney
as in these circumstances the member is not acting in a client relationship.

Fundamental responsibili ties of members
APES 310 requires members in public practice who deal with client monies or act as an auditor of client monies to comply
with APES 110 Code of Ethics for Professional Accountants (the Code) in respect of:

• Section 100 - Introduction and Fundamental Principles
• Section 130 – Professional Competence and Due Care
• Section 140 - Confidentiality
• Section 220 - Conflicts of Interest
• Section 280 – Objectivity - All Services.

Professional obligations of a member in public practice who deals with client monies
Some of the general principles in relation to dealing with client monies require a member to:

• comply with Section 270 – Custody of Client Assets of the Code
• only deal with client monies through a client bank account or a trust account and only in accordance with the
client’s instructions
• be accountable for all client monies and keep client monies separate from the member’s all other monies
• implement appropriate internal controls and procedures in respect of the operation of trust accounts and client
bank accounts
• not obtain any benefit from dealing with client monies without prior written authority from the client
• only charge professional fees in respect of dealing with client monies in accordance with Section 240 – Fees and
Other Types of Remuneration of the Code
• comply with relevant legal and fiduciary duties when acting as a trustee or under a power of attorney
• not be involved in any money laundering transactions or in the utilisation of the proceeds of crime or terrorist

Audit of a member in public practice’s compliance with this standard
A member in public practice must ensure that the member’s compliance with the requirements of the Standard is audited
annually within three months of the applicable year-end date and must appoint another member in public practice as
auditor of client monies to perform the audit.

APES 310:
Dealing with Client Monies Fact Sheet

Professional obligations of an auditor of a member in public practice’s compliance with this standard
A member in public practice who acts as an auditor of client monies is required to:

• perform the audit and prepare the auditor’s report in accordance with auditing and assurance standards
• comply with Section 291 – Independence – Other Assurance Engagements of the Code
• report any deficiency of client monies to the member’s professional body within five business days upon becoming
aware of the deficiency
• report to the member’s professional body within 10 business days of becoming aware of any material failure by a
member, uncorrected error reflected in a statement issued by a financial institution or circumstances where client
monies have not been transacted or maintained in accordance with this standard
• retain relevant working papers for a period of at least seven years
• obtain the written approval of the applicable professional body prior to resigning from the position of auditor of
client monies.

Refer to the Standard for information concerning:

• definitions
• public interest
• professional competence and due care
• confidentiality
• opening a trust account
• dealing with client monies
• disbursement of client monies
• documentation
• conformity with international pronouncements.

The above material is only general in nature and not intended to be specific to the reader’s circumstances. The material does not relieve you of your
obligation, as a member of CPA Australia, to ensure that you comply with professional standards. To keep up-to-date members should visit the APESB
website at apesb.org.au.

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Issued September 2013

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