Page 291 - IOM Law Society Rules Book

ADVOCATES ACCOUNTS RULES 2008

Rule 43 – Departures from guidelines for accounting procedures and systems

The accountant should be aware of the Council’s guidelines for accounting procedures and
systems (see rule 29), and must note in the accountant’s report any substantial departures
from the guidelines discovered whilst carrying out work in preparation of the report. (See also
rule 44(d).)

Rule 44 – Matters outside the accountant’s remit

The accountant is not required:

(a) to extend his or her enquiries beyond the information contained in the
documents produced, supplemented by any information and explanations given
by the advocate;

(b) to enquire into the stocks, shares, other securities or documents of title held by
the advocate on behalf of the advocate’s clients;

(c) to consider whether the accounting records of the advocate have been properly
written up at any time other than the time at which his or her examination of the
accounting records takes place; or

(d) to make a detailed check on compliance with the guidelines for accounting
procedures and systems (see rules 29 and 43).

Rule 45 – Privileged Documents

An advocate, acting on a client’s instructions, always has the right on the grounds of privilege
as between advocate and client to decline to produce any document requested by the
accountant for the purposes of his or her examination. In these circumstances, the accountant
must qualify the report and set out the circumstances.

Rule 46 – Completion of checklist

The accountant should exercise his or her professional judgment in adopting a suitable “audit”
programme, but must also complete and sign a checklist in the form published from time to
time by the Council. The advocate must obtain the completed checklist, retain it for at least
three years from the date of signature and produce it to the Council on request.

Notes
(i) The current checklist appears at Appendix 2. It is issued by the Society to advocates at
the appropriate time for completion by their reporting accountants.
(ii) The letter of engagement required by rule 38 imposes a duty on the accountant to hand
the completed checklist to the advocate, to keep a copy for three years and to produce
the copy to the Society on request.

Rule 46 – Completion of checklist page 48