Checklist · Trust accounting & handling client money
Review checklist for AI-assisted monthly trust reconciliation (Uniform General Rules r 48)
A checklist for the principal who reviews a monthly trust reconciliation prepared with AI matching: inputs and access, the statements r 48 requires, how to test the AI's matches, exceptions to investigate, master-data changes, sign-off within 15 working days, and escalation of irregularities.
- Kind
- Checklist. Steps or checks to work through and tick off.
- Where it applies
- New South Wales, Victoria, Western Australia
- AI use
- Red Keep AI out of the decisive steps. A lawyer does the work.
- Law stated as at
- 17 October 2026
- Status
- Maintained. Checked against the cited sources on 17 October 2026.
- Version
- 1
- Source
- Written for this library
When to use it
Use each month where software or an AI tool has matched bank, cash book and ledger entries. It is the human review layer; it does not replace the reconciliation statements or the external examination.
How AI may be used
Lawyer-led. AI matching can speed up a reconciliation, but the responsible principal reviews every exception and a sample of matches and signs off personally. AI never posts entries or clears differences.
AI may
- Suggest matches between bank statement lines, cash book entries and ledger entries, with the reason for each match.
- List unmatched items, timing differences, aged balances and possible debit balances for review.
- Assemble the month's reconciliation pack and index for the reviewer.
AI must not
- Must not post, edit or reverse entries, or create journal transfers.
- Must not mark differences as resolved or "write off" small amounts.
- Must not use bank data that did not come directly from the bank or the bank feed.
The lawyer checks
- Both r 48(2) statements exist, are dated and were prepared within 15 working days after month end.
- Every exception is explained with evidence, and a sample of AI matches was tested.
- Any irregularity has been escalated under s 154.
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Read the full text
The full text is for signed-in accounts. It is free. When you sign in you can:
- read the whole precedent, with its drafting notes beside it;
- copy it, or download it as a Word file or Markdown;
- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
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