Solicitors Regulation Authority (SRA) Audits
SRA Audit Services: Hayvenhursts Chartered Accountants
An SRA audit is essential for any solicitor or SRA-regulated law firm that handles client money, ensuring compliance with the Solicitors Regulation Authority’s strict Accounts Rules. At Hayvenhursts, we provide dependable support and external reviews that confirm your legal firm’s compliance and protect your clients’ funds.
Our certified accountants have decades of experience working with solicitors and law firms across England and Wales. Many of the legal firms we support trust us year after year because of our in-depth knowledge, straightforward approach, and competitive fees. We don’t just perform SRA audits; we provide proactive guidance to make sure your accounting systems, procedures, and controls are robust, accurate, and ready for inspection.
The SRA regularly updates its rules and regulations, which can make compliance challenging for busy legal practices. Having a trusted partner who stays up to date with regulatory changes means you can focus on serving your clients and confidently meeting your compliance obligations. Whether you’re preparing for your first SRA audit or reviewing your processes ahead of a routine check, we’ll ensure your client ledgers, funds, and assets are all properly managed.
Choosing Hayvenhursts means choosing a chartered accountancy team that understands the unique regulatory requirements of the legal profession. From initial consultation to delivering your signed SRA audit report, we work closely with you to minimise risk, strengthen your systems, and give your clients confidence in your financial integrity.
Ensure your law firm is fully compliant with the Solicitors Regulation Authority with Hayvenhursts. Contact us today on 02920 777 756 to arrange an expert SRA audit support tailored to your legal practice.
What SRA Audits Are and Who Needs Them
An SRA audit is a detailed review of a solicitor or law firm’s handling of client money. It ensures compliance with the Solicitors Regulation Authority (SRA) Accounts Rules, which are designed to protect client funds and uphold trust in the legal profession. These audits are mandatory for most SRA-regulated firms that manage or hold client money as part of their services.
When a legal firm conducts work, such as conveyancing or probate, client funds frequently pass through its accounts. For example, during a house purchase, the sale proceeds are temporarily held in the firm’s client account. Even short-term handling of these funds requires an SRA audit. Similarly, probate work often involves holding client assets for distribution. The SRA requires law firms to demonstrate that these funds are safeguarded at all times.
There are limited SRA audit exemptions, but they apply only in specific cases: for instance, when legal firms hold very small amounts of client money or when funds are received solely from the Legal Aid Agency. Even in these cases, law firms must still follow SRA guidelines and be prepared to prove their eligibility for exemption.
At Hayvenhursts, we work with law firms of every size to ensure their systems, reconciliations, and controls fully meet regulatory standards. Our experienced chartered accountants explain your obligations clearly and guide you through effective preparation for the SRA audit process. Whether your legal firm is long-established or you are a newly qualified solicitor setting up your practice, understanding when an SRA audit is required is essential. Complete our contact form today for expert guidance on your SRA audit needs.
SRA Audit Frequency, Requirements, and Scope
An SRA audit is not a one-off obligation. It is an ongoing requirement for most SRA-regulated firms that handle client money. The Solicitors Regulation Authority (SRA) requires legal firms to complete an SRA audit process annually, ensuring that client accounts remain accurate, transparent, and compliant with the Accounts Rules.
Typically, a law firm must obtain its accountant’s report within six months of the end of its accounting period. This deadline ensures timely reviews and prevents prolonged periods where non-compliance could place client funds at risk. Regular audits also allow legal firms to identify and resolve issues early, rather than waiting until a breach has occurred.
The scope of an SRA audit is wide-ranging. Auditors examine bank reconciliations, review the accuracy of your client ledger, and test your transactions to confirm that money is being handled according to SRA requirements. They may also check for breaches, such as inappropriate transfers, delays in depositing funds, or improper withdrawals. In addition, auditors will evaluate the effectiveness of your law firm’s accounting systems and internal controls.
Even legal firms that believe they are fully compliant benefit from treating each audit as an opportunity for improvement. Proactively maintaining your records and conducting internal checks throughout the year makes your external audit smoother and less disruptive.
At Hayvenhursts, our team is knowledgeable in managing the full scope of Solicitors Regulation Authority (SRA) Audits. We guide you through every stage, making sure your accounts, systems, and processes are robust and ready for inspection. Book a consultation with us today to understand your SRA audit schedule and requirements.
Role of Reporting Accountants in SRA Audits
Reporting accountants play a critical role in every Solicitors Regulation Authority audit. Their job is to independently review your law firm’s accounts and processes, ensuring that all handling of client funds meets professional standards and SRA requirements.
To carry out an SRA audit, your reporting accountant must be a qualified professional with the expertise to understand the SRA Accounts Rules, internal controls, and the unique demands of legal practices. Reporting accountants must meet the expectations of the regulatory body and maintain strict professional standards. At Hayvenhursts, our team consists of chartered accountants experienced in the legal sector who understand the challenges SRA-regulated firms face.
During our audit, our reporting accountant evaluates your financial record-keeping and financial reporting processes. We check your bank reconciliations, assess the accuracy of your client ledgers, and trace sample transactions to confirm your compliance. Our report outlines any concerns, highlights your strengths, and recommends improvements where necessary. Our independent review provides reassurance to your clients, your partners, and the SRA that your systems are robust.
Our reporting accountant also acts as a guide, helping legal firms interpret the Solicitors Regulation Authority (SRA) Audits framework and preparing them for potential changes in the regulatory environment. Choosing our chartered accountant ensures your SRA audit is fully compliant and provides valuable insights that support your law firm’s future growth and operational efficiency.
At Hayvenhursts, we provide a proactive partnership, offering clear advice before, during, and after your SRA audit. Get in touch with our qualified accountants today for specialist SRA audit reporting support tailored to your law firm’s needs.
How to Prepare for an SRA Audit
Proper preparation is essential for a smooth Solicitors Regulation Authority audit. By reviewing your internal systems and documents ahead of time, you can minimise stress, avoid last-minute errors, and demonstrate to SRA auditors that your legal firm handles your clients’ funds responsibly.
Building Effective Systems and Records
Start by ensuring your accounting software, client ledgers, and bank reconciliation processes are accurate and up to date. Regular reconciliations between your client accounts, cashbooks, and bank statements confirm that your clients’ assets are fully safeguarded. You should also include transfer of funds records and details of your source of funds checks in your preparation, as SRA auditors will test your controls.
Organise your supporting documents, such as invoices, receipts, and authorisations. Well-maintained bank statements and authorisation records will make it easy for your SRA auditor or external accountant to trace transactions during sampling. Ensuring your internal system is secure and functioning properly is another key step.
Hayvenhursts’ Tailored Pre-Audit Checklist
At Hayvenhursts, we develop a bespoke pre-audit checklist that helps your law firm review high-risk areas, such as investment schemes or unusual transactions. Our experienced team uses risk-based monitoring to identify potential breaches before your SRA audit begins, reducing the possibility of delays or costly findings.
At Hayvenhursts, our dependable support ensures you’re fully prepared for SRA requirements and confident in your audit process. To request your tailored SRA audit checklist and expert guidance, click here.
Consequences of Non-Compliance
Failing to meet the requirements of a Solicitors Regulation Authority audit can have serious repercussions for any legal practice. The Solicitors Regulation Authority (SRA) Audits process exists to safeguard client funds, maintain financial integrity, and protect the reputation of SRA-regulated law firms. Non-compliance can damage your legal firm’s standing, trigger disciplinary measures, and erode client trust.
Potential Regulatory Sanctions and Outcomes
If your accountant’s report highlights your breaches of the Accounts Rules, the SRA may impose regulatory sanctions. These can range from formal warnings to heavy fines, strict conditions on your practising certificates, or even referrals to the Solicitors Disciplinary Tribunal. In severe cases, law firms could face intervention, where the SRA takes control of your firm’s accounts to protect client money.
Beyond the immediate penalties, poor financial management or incomplete accounting records can create long-term risks. An adverse report may trigger increased regulatory inspection or more frequent audits, adding cost and disruption to your law firm’s operations.
Impact on Financial Integrity and Client Trust
Breaches discovered during an SRA audit can undermine your law firm’s reputation in the legal market. Clients need reassurance that their assets and funds are always secure. Even minor lapses in procedure can lead to questions about your legal firm’s reliability. Maintaining compliance within the regulatory framework ensures your business is trusted and competitive.
At Hayvenhursts, we guide law firms through remediation steps if issues are discovered, helping you to correct problems swiftly and strengthen your systems for the future. Our proactive approach reduces risks and protects your legal practice from costly mistakes. Contact us today for compliance advice.
Best Practices for Passing an SRA Audit
Passing a Solicitors Regulation Authority audit requires more than just meeting minimum standards. It means maintaining your law firm’s strong internal controls and transparent accounting practices year-round. Consistent preparation will make the Solicitors Regulation Authority (SRA) Audits process straightforward and help your firm build lasting client trust.
Common Mistakes to Avoid
One of the most common errors SRA-regulated law firms make is neglecting regular bank reconciliations. Waiting until your SRA audit schedule to review balances can expose discrepancies and create unnecessary pressure. Poorly maintained financial records or incomplete transaction histories can also delay your SRA audit and raise concerns. Another frequent mistake is failing to update or test your accounting systems, which can compromise accuracy and your compliance. Avoid shortcuts in recording your clients’ funds and ensure your processes comply fully with SRA requirements.
Strengthening Internal Controls and Bank Reconciliations
Implement robust financial systems that support your accurate bank reconciliations and thorough documentation. Conduct regular external reviews to evaluate your accounting practices and detect potential issues early. Training your staff on SRA audit expectations and maintaining a reliable client ledger will reduce errors. Keeping your bank reconciliations current demonstrates your strong governance and simplifies your SRA auditor’s review.
At Hayvenhursts, we provide professional guidance and tailored recommendations to help your law firm consistently meet SRA standards. Arrange an SRA audit review with our certified accountants today by calling 02920 777 756 to give your legal firm the best chance of success.
Support Available for Solicitors
Complying with the Solicitors Regulation Authority (SRA) audit process can feel complex, especially for law firms balancing client work with administrative obligations. Reliable support helps ensure your legal firm meets every Solicitors Regulation Authority audit requirement and maintains efficiency and client trust.
Professional SRA Audit Guidance and Training Resources
At Hayvenhursts, our chartered accountants specialise in working with SRA-regulated firms. We provide tailored compliance audits, training, and risk assessment services to ensure your law practice understands current regulatory changes and stays ahead of changing standards. Our qualified accountants review your financial controls and offer targeted advice on maintaining robust procedures that protect your clients’ money and strengthen your financial governance.
In addition to our specialist SRA audit services, we also provide educational resources and training for your team. These sessions help your solicitors and support your staff understand their roles in safeguarding client funds, improving their knowledge of the SRA Accounts Rules, and building confidence during inspections.
Ongoing Monitoring and Compliance Tools
SRA compliance does not stop once your audit is complete. We offer ongoing monitoring solutions and financial review services to help you identify potential weaknesses early. By embedding our regular checks and controls into your law firm’s routine, you reduce the risk of costly breaches and maintain a reputation for professionalism.
At Hayvenhursts, we are your long-term partner, offering expert advice whenever you need it. Whether you are preparing for your first SRA audit or seeking ongoing guidance, our experienced accountants ensure your legal firm remains compliant and competitive. Call us today on 02920 777 756 or use our contact form for prompt support.
What Hayvenhursts Can and Cannot Do
What We Can Do
- Conduct independent SRA client money audits as qualified accountants experienced in the legal sector.
- Review your financial statements, client ledgers, and funds to confirm compliance with the SRA Accounts Rules.
- Provide proactive advice on strengthening your internal systems, improving financial controls, and maintaining SRA audit readiness.
- Guide SRA-regulated law firms on managing client assets responsibly and meeting all Solicitors Regulation Authority audit requirements.
- Support your legal practice with compliance plans, risk assessments, and staff training on SRA audit preparation.
What We Cannot Do
- Act as the Solicitors Regulation Authority or make regulatory decisions.
- Provide legal advice or tell you which solicitor or law firm to use.
- Reduce or refund legal fees for any law firm or client matter.
- Intervene in disputes between clients and solicitors or replace the Legal Ombudsman, which handles service complaints.
- Guarantee that the SRA will not investigate your legal firm. Our role is to prepare and support you, not to influence regulatory outcomes.
At Hayvenhursts, our comprehensive services are designed to support every stage of your business journey, from creating a clear business plan to managing ongoing financial responsibilities. We take the time to understand your business goals, challenges, and operations, allowing us to tailor our expertise to fit your specific needs.
Our specialist services include:
- Solicitors Regulation Authority (SRA) Services
- Accounts Preparation
- Audits
- Bank Accounts
- Book-keeping
- Book-keeping Health Check
- Business Growth
- Business Health Check
- Business Plans
- Business Valuations
- Commercial Property
- Company Formation
- Company Secretarial
- Contractors and IR35
- Inheritance Tax Planning
- Management Accounts & Information
- Management Systems
- PAYE Health check
- Payroll & PAYE Returns
- Personal Tax
- Property Tax
- Raising Finance
- Reduce your SRA Audit Costs
- Registered Office
- Strategic Planning
- Tax Disputes
- Tax Enquiries & investigations
- Tax Planning
- Tax Returns & Self-Assessment
- Trusts
- VAT Health checks
- VAT Planning & Disputes
- VAT Registration
- VAT Returns
SRA Audits Frequently Asked Questions
1. Are SRA audits necessary for all solicitors and law firms?
Answer: Yes. Any solicitor or law firm in England and Wales that holds client money must undergo an SRA audit. Some exemptions apply, such as firms handling very small sums or only Legal Aid funds, but these firms must still comply with SRA rules.
2. What is the purpose of an SRA audit?
Answer: An SRA audit ensures solicitors comply with the SRA Accounts Rules. It confirms client assets and funds are safeguarded, strengthens public trust, and highlights areas for operational improvement.
3. Who can conduct an SRA audit?
Answer: Only qualified accountants knowledgeable with the SRA Accounts Rules and legal industry standards can conduct these audits. At Hayvenhursts, our experienced SRA auditors review your financial statements and provide an independent assessment.
4. What is the deadline for submitting an accountant’s report to the SRA?
Answer: Law firms must obtain their accountant’s report within six months of the end of their accounting period. If breaches are found that place your clients’ money at risk, the report must be sent to the SRA promptly.
5. What risks does the SRA look for during audits?
Answer: SR auditors assess risks, such as improper use of your clients’ ledgers, delayed deposits, unallocated transfers, or overdrawn balances. They also check for inadequate internal systems, weak financial controls, or non-compliance with SRA rules.
6. What happens if my law firm fails to meet regulatory standards?
Answer: The SRA may issue warnings, impose fines, apply restrictions, or refer your case to the Solicitors Disciplinary Tribunal. In serious cases, intervention may occur.
7. How can Hayvenhursts help reduce SRA audit costs?
Answer: We offer efficient, proactive services tailored to your legal firm, helping you stay compliant and minimise costs.Ensure your law firm remains compliant and prepared for every Solicitors Regulation Authority audit. Call us today on 02920 777 756 or fill out our contact form to arrange expert SRA audit support tailored to your legal practice.