1964_ACCOUNTANT_S_REPORT_RULES — Page 3

1976 Ed.]

Accountant's Report Rules

[CAP. 159

A 3

[Subsidiary]

(c) he is not subject to notice of disqualification under

paragraph (2).

(2) If either-

(a) the accountant has been found guilty by the Disciplinary Committee appointed under section 33 of the Professional Accountants Ordinance of professional misconduct or dishonourable conduct; or

(b) the Committee is satisfied that a solicitor has not complied with the provisions of the Solicitors' Accounts Rules in respect of matters not specified in an accountant's report and that the accountant was negligent in giving such report,

the Committee may at its discretion at any time notify the account- ant concerned that he is not qualified to give an accountant's report, and the Committee may give notice of such fact to any solicitor on whose behalf he may have given an accountant's report, and after such accountant shall have been so notified, unless and until such notice of disqualification shall have been withdrawn by the Commit- tee, the accountant shall not be qualified to give an accountant's report:

Provided that in coming to its decision under this paragraph, the Committee shall take into consideration any observations or instructions made or given by the accountant or on his behalf by the professional body of which he is a member.

4. (1) With a view to the signing of an accountant's report an accountant shall not be required to do more than-

(a) make a general test examination of the books of account

of the solicitor;

(b) ascertain whether a client account is kept;

(c) make a general test examination of the bank passbooks and statements kept in relation to the solicitor's practice; (d) make a comparison, as at not fewer than 2 dates selected

by the accountant, between-

(i) the liabilities of the solicitor to his clients and, if trust money has been paid into the client account under the Solicitors' Accounts Rules, to the cestuis que trustent, as shown by his books of account, and

(ii) the balances standing to the credit of the client account; and

(e) ask for such information and explanations as he may

require arising out of paragraphs (a) to (d).

(2) If after making the investigation prescribed by paragraph (1) it appears to the accountant that there is evidence that the Solicitors' Accounts Rules have not been complied with, he shall make such further investigation as may be necessary to enable him to sign the accountant's report.

L.N. 197/73.

(Cap. 50.)

(Cap. 159, sub. leg.)

Duties of an accountant. L.N. 20/70.

(Cap. 159, sub. leg.)