In relation to trust account auditing requirements, how frequently must a licensed real estate agency typically undergo an external audit of their trust account records?
Correct Answer
C) Annually, by an approved external auditor
Most Australian jurisdictions require real estate agencies to have their trust accounts audited annually by an approved external auditor. This ensures ongoing compliance with trust account regulations and protects consumer funds through regular independent oversight.
Why This Is the Correct Answer
Trust accounts are generally audited once a year by an independent, approved auditor, whose report goes to the regulator.
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In a situation where a real estate agent provides a comparative market analysis (CMA) that significantly overestimates a property's value to secure a listing, which legal principles under Australian Consumer Law are most relevant?
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In the context of trust account auditing requirements, which statement best describes the auditor's primary responsibility?