Page 292 - IOM Law Society Rules Book

ADVOCATES ACCOUNTS RULES 2008

Rule 47 – Form of accountant’s report

The accountant must complete and sign his or her report in the form published from time to
time by the Council.

Notes

(i) The current form of accountant’s report appears at Appendix 3.
(ii) The form of report is prepared and issued by the Society to advocates at the
appropriate time for completion by their reporting accountants. Separate
reports can be delivered for each principal in a partnership but most firms
deliver one report in the name of all the principals. For assistant advocates and
consultants, see rule 35, notes (v) and (vi).

(iii) A recognised body will deliver only one report, on behalf of the company and
its directors, or on behalf of the limited liability partnership and its members –
see rule 35(1).

(iv) Although it may be agreed that the accountant send the report direct to the
Society, the responsibility for delivery is that of the advocate. The form of
report requires the accountant to confirm that either a copy of the report has
been sent to each of the advocates to whom the report relates, or a copy of the
report has been sent to a named partner on behalf of all the partners in the firm.
A similar confirmation is required in respect of the directors of a recognised
body which is a company.

(v) A reporting accountant is not required to report on breaches that are not
material, provided that they have been rectified on discovery and the accountant
is satisfied that no client suffered any loss as a result.

(vi) In many practices, clerical and book-keeping errors will arise. In the majority
of cases these may be classified by the reporting accountant as breaches which
are not material. A breach of the rules is material if its omission from an
accountant’s report would reasonably influence the decisions of the Society.
The amount involved, the nature of the breach, whether the breach is deliberate
or accidental, how often the same breach has occurred, and the time outstanding
before correction (especially the replacement of any shortage) are all factors
which may be relevant in determining whether a breach is material or not.

(vii) The Society may receive reports which are qualified only by reference to
breaches which are not material, but which show a significant difference
between liabilities to clients and client money held in client and other accounts.
An explanation for this difference, from either the accountant or the advocate,
must be given.

(viii) Accountants’ report should be sent to the Council.

(ix) For direct reporting by the accountant to the Society in cases of concern, see
rule 38 and note (i) to that rule.

Rule 47 – Form of accountant’s report page 49