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A listing broker in Greenville is answering a client question about trust account reconciliation, audit trail, and account designation. Which statement best applies under current North Carolina law?

Correct Answer

D) The purpose of monthly trust reconciliation is to protect client money and allow prompt detection of errors or shortages.

The purpose of monthly trust reconciliation is to protect client money and allow prompt detection of errors or shortages.

Answer Options
A
A broker with software need not reconcile manually or review the reports.
B
Reconciliation exists only to prepare tax returns under current North Carolina rules
C
Reconciliation is required only when the Commission announces an audit.
D
The purpose of monthly trust reconciliation is to protect client money and allow prompt detection of errors or shortages.

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Related Topics & Key Terms

Key Terms:

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