Lawyer’s Representations Pursuant to CPA Examination of Lawyer’s Trust Account(s)
(Lawyer’s Representation Form)
Pursuant to the policy of the North Carolina State Bar Council, a lawyer or law firm may seek exemption
from the random audit of trust accounts authorized by 27 NCAC 1B, Rule .0128(b) by having a CPA or
CPA firm perform an examination pursuant to the Agreed Upon Procedures for CPA Examination of
Lawyers’ Trust Accounts (“Agreed Upon Procedures”) to provide information to the lawyer and the North
Carolina State Bar regarding the management of the lawyer’s trust account(s). As a condition of the
exemption, the lawyer must make certain representations regarding the management of client and/or
fiduciary funds held in trust. This representation form and any attachments must be provided to the
CPA/CPA firm prior to commencement of the examination and must be attached to the CPA report
sent to the North Carolina State Bar.
____________________, hereafter “Lawyer” , must attach a list of all bank accounts into which Lawyer
has deposited client or other fiduciary funds, including all general, dedicated, and fiduciary trust accounts
(Attachment 1), and list all lawyers affiliated with Lawyer’s firm to which the exemption would apply
I hereby certify personally and on behalf of any lawyers affiliated with this firm, whose names are listed
in Attachment 2, that the account(s) listed in Attachment 1 is/are the only trust account(s) to which such
lawyer(s) has had access during the past year, that the records and documents provided to
______________________, hereafter CPA, are the full and accurate records of the trust accounts and,
further, with respect to transactions occurring during the past year, that the following statements are true:
1) The lawyer/firm does not maintain any trust accounts outside the state of North Carolina.
2) The lawyer/firm is aware of his/her duty to report trust/fiduciary account misappropriation.
3) The lawyer/firm retains required trust account records for at least the six (6) year period
immediately preceding the lawyer’s most recent fiscal year end.
4) The lawyer/firm has not used or pledged any entrusted property to obtain credit or other
personal financial benefit for the lawyer or any other person other than the legal or beneficial
owner of that property.
5) Entrusted properties belonging to a client received by the lawyer are promptly identified and
labeled as the property of the client.
6) Entrusted property not deposited in a trust account or fiduciary account when received by
lawyer/firm is placed in a place of safe keeping as soon as practical. Specifically, it is placed in:
N/A Safe Deposit Box Office Safe Other_______________
7) The lawyer/firm promptly notifies client of the receipt of any funds, securities or property
belonging in whole or in part to client.