During a California broker's monthly trust account reconciliation, a beneficiary ledger shows $2,000 more than the amount the escrow company confirms was actually received. The discrepancy appears to be a data entry error. Under DRE trust account regulations, what must the broker do first?
Correct Answer
A) Correct the ledger entry to match the confirmed receipt and retain the supporting escrow documentation
Under DRE regulations (Cal. Code of Regs. §2831 and §2831.1), brokers must maintain accurate beneficiary ledgers that reflect actual funds received. When a reconciliation reveals a discrepancy traceable to a data entry error, the broker must correct the ledger to match the verified amount, retain the supporting escrow documentation as the audit trail, and document the nature and resolution of the error. Accurate recordkeeping and a clear audit trail are the core regulatory requirements.
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Related Topics & Key Terms
Key Terms:
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