During an examination of a Queensland agent's trust account, the auditor finds a $5,000 shortfall that accounting errors do not explain. Under the Agents Financial Administration Act 2014, which statement is correct?
Correct Answer
B) The auditor must immediately give the chief executive written notice of the problem
Section 37 of the Agents Financial Administration Act 2014 (Qld) requires an auditor to give the chief executive (the Office of Fair Trading) written notice immediately if the auditor cannot report that a trust account has been satisfactorily kept, or finds an irregularity on an unannounced examination. An unexplained shortfall is exactly that kind of problem. The agent must also make good the deficiency and faces disciplinary action if trust money has been misapplied.
Why This Is the Correct Answer
The Agents Financial Administration Act 2014 (Qld) requires an auditor who cannot report that a trust account has been properly kept, or who finds an irregularity, to give the chief executive written notice immediately. An unexplained shortfall triggers that duty.
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