A salesperson who helps prepare the brokerage's monthly trust account reconciliation notices a shortage of $2,500. What is the most appropriate immediate action for the salesperson?
Correct Answer
D) Immediately report the shortage to the broker of record
In Ontario the trust account belongs to the brokerage (TRESA s. 27), and the broker of record must review and sign each monthly reconciliation (O. Reg. 579/05 s. 13(3)). When a shortfall is found, the brokerage must immediately notify the registrar and deposit enough money to eliminate it (s. 14). A salesperson's part is to report the shortage at once to the broker of record so the brokerage can act.
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