Trust Audit

There are special accounting rules for trust accounts and a Trust Audit is designed to ensure compliance with accounting rules.

It aims to set out the thought process that should be adopted when considering who, within an audit firm, can or should act as a trustee of a trust which has an investment in an audit client.A Trust Report is asked to be made each financial year by Chartered Professional Accountant to summarize the findings of the Trust Audit. The relevant Professional Standards Regulation Board will provide a list of procedures to be followed to complete the annual Trust Audit. The Accountant will choose a sample of accounts to audit based on the guidelines provided and complete the required procedures on the sample chosen.

Any findings of non-compliance with the regulations laid out by the Professional Standards Regulation Board are reported in the Trust Report. The Trust Report is then sent to the appropriate Professional Standards Regulation Board for the Board to review and act upon if required. Contact your nearest gst suvidha center.

Reasons Why It Is Important

 Provides Objective Insight

 Improves Efficiency of Operations

 Evaluates Risks and Protects Assets

 Assesses Controls

Ensure Compliance with Laws and Regulations 

Documents Required For Trust Audit

 Certified copy of the instrument under which the trust/institution was created/established, if applicable

 Certified copy of the document evidencing the creation of the trust or the establishment of the institution, if applicable

 Certified copy of registration with RoC/Registrar of Firms & Societies/Registrar of Public Trusts, whichever applicable

 Certified copy of the documents evidencing adoption or modification of the objects, if any

 Certified copy of the annual reports of the trust/institution for a maximum three immediately preceding financial years, if applicable

 Note on activities

 Certified copy of existing order granting registration under section 12A or section 12AA, if any.

 Certified copy of order of rejection of application for grant of registration under section 12A or section 12AA, if any.