Standard Trust Account Transactions | My Assignment Tutor

2. ASSESSMENT CPPREP4005 Version 1.0 25 March 2020 Page 16 of 19DOCUMENT LOCATION: Sharepoint/NSW/CPP41419/CPPREP4005Project 3 – Standard Trust Account TransactionsIn this section you will demonstrate your skills and knowledge in relation to:• Standard transactions that occur in the trust account• Common sources of inaccuracies in trust account transactions and how they can be corrected• The monthly processes required for the trust account by legislation.What you need to do:Follow the instructions below to complete a portfolio of evidence related to the management of trust accounts.What you will need:§ Research materials such as books, internet, magazines, workplace documentation etc.§ Access to agency policies, procedures and other relevant documentation§ Access to a computer§ Access to the Internet.When:During your own timeWhat you need to submit:You will complete in the available spaces your answers to the questions belowINSTRUCTIONS:Provide your responses to the following in the spaces provideda. Standard transactionsExplain what are the following items are in trust account records. In your responses explain what makes up the itemsand where information is drawn from:- ITEMEXPLANATIONDepositsWithdrawalsJournalsLedgers 2. ASSESSMENT CPPREP4005 Version 1.0 25 March 2020 Page 17 of 19DOCUMENT LOCATION: Sharepoint/NSW/CPP41419/CPPREP4005 Balances and ReconciliationStatements and reportsASSESSOR USE ONLYSNS b. Common Sources of Inaccuracies in Trust Account transactionsi. List down four of the most common errors that are found in your office with the monthly reconciliation isbeing undertaken at the end of the month. ASSESSOR USE ONLYSNS ii Explain how you would handle the situation when you discovered that a trust account was overdrawn. In youranswer include who you would report the discrepancy to outside your office as required by legislation. ASSESSOR USE ONLYSNS 2. ASSESSMENT CPPREP4005 Version 1.0 25 March 2020 Page 18 of 19DOCUMENT LOCATION: Sharepoint/NSW/CPP41419/CPPREP4005c. Trust account cyclei. List the five steps in the trust account cycle ASSESSOR USE ONLYSNS ii. Review the relevant legislation and report in your own words the monthly trust account processes requiredby legislation and the Supervision Requirements of the Property and Stock Agents Act 2002, Section 32. ASSESSOR USE ONLYSNS 2. ASSESSMENT CPPREP4005 Version 1.0 25 March 2020 Page 19 of 19DOCUMENT LOCATION: Sharepoint/NSW/CPP41419/CPPREP4005iii. Explain the purpose of internal and external audits. In your answer refer to the appropriate legislationgoverning real estate trust accounts. ASSESSOR USE ONLYSNS THIS IS THE END OF THE ASSESSMENT


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