Knowledge Check Activities – TRUST ACCOUNT MANAGEMENT

By webv8 / 26 February 2026

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Question 1 of 51

1. Question

What is the primary purpose of a trust account in conveyancing? Single Choice

To hold client funds securely for specific purposes
Correct Incorrect Correct answer

To manage office expenses
Correct Incorrect Correct answer

To pay staff salaries
Correct Incorrect Correct answer

To invest in property
Correct Incorrect Correct answer

Correct

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Question 2 of 51

2. Question

Who is responsible for managing a trust’s tax affairs? Single Choice

Beneficiary
Correct Incorrect Correct answer

Accountant
Correct Incorrect Correct answer

Trustee
Correct Incorrect Correct answer

Auditor
Correct Incorrect Correct answer

Correct

Incorrect
Question 3 of 51

3. Question

Which legislation governs privacy requirements in Australia? Single Choice

Trusts Act 2001
Correct Incorrect Correct answer

Privacy Act 1988
Correct Incorrect Correct answer

Conveyancing Act 1995
Correct Incorrect Correct answer

Financial Services Act 2000
Correct Incorrect Correct answer

Correct

Incorrect
Question 4 of 51

4. Question

What is a source document in trust accounting? Single Choice

A marketing brochure
Correct Incorrect Correct answer

A duplicate trust receipt or EFT requisition
Correct Incorrect Correct answer

A client’s birth certificate
Correct Incorrect Correct answer

A staff roster
Correct Incorrect Correct answer

Correct

Incorrect
Question 5 of 51

5. Question

How long must trust records generally be kept? Single Choice

3 years
Correct Incorrect Correct answer

5 years
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10 years
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7 years
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Correct

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Question 6 of 51

6. Question

What is the purpose of reconciling a trust account? Single Choice

To calculate interest
Correct Incorrect Correct answer

To ensure the account balance matches recorded transactions
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To prepare tax returns
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To pay office bills
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Correct

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Question 7 of 51

7. Question

Which of the following is considered ethical behaviour in trust account management? Single Choice

Sharing client details with colleagues
Correct Incorrect Correct answer

Using trust funds for office purchases
Correct Incorrect Correct answer

Ignoring minor discrepancies
Correct Incorrect Correct answer

Acting with integrity and confidentiality
Correct Incorrect Correct answer

Correct

Incorrect
Question 8 of 51

8. Question

What is a disbursement? Single Choice

A payment made from a trust account
Correct Incorrect Correct answer

A deposit into a trust account
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A transfer between staff accounts
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A refund to the conveyancer
Correct Incorrect Correct answer

Correct

Incorrect
Question 9 of 51

9. Question

What must be done when a discrepancy is found in a trust account? Single Choice

Ignore it
Correct Incorrect Correct answer

Wait for the next audit
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Clarify, resolve, and report if necessary
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Delete the transaction
Correct Incorrect Correct answer

Correct

Incorrect
Question 10 of 51

10. Question

Which document outlines how a task should be performed? Single Choice

Policy
Correct Incorrect Correct answer

Procedure
Correct Incorrect Correct answer

Invoice
Correct Incorrect Correct answer

Ledger
Correct Incorrect Correct answer

Correct

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Question 11 of 51

11. Question

What is the role of an audit in trust account management? Single Choice

To promote the business
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To train staff
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To calculate salaries
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To ensure compliance with legislation
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Correct

Incorrect
Question 12 of 51

12. Question

What is the minimum requirement for authorising a trust transaction? Single Choice

Verbal agreement
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Staff approval
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Client’s signature on a blank form
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Written authorisation
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Correct

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Question 13 of 51

13. Question

What is the benefit of using electronic trust accounting systems? Single Choice

They allow for faster, more accurate record-keeping
Correct Incorrect Correct answer

They eliminate the need for audits
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They replace legal obligations
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They are cheaper than manual systems
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Correct

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Question 14 of 51

14. Question

What should be included in a periodic financial report to a client? Single Choice

Staff performance
Correct Incorrect Correct answer

Office expenses
Correct Incorrect Correct answer

Trust account transactions and balances
Correct Incorrect Correct answer

Marketing plans
Correct Incorrect Correct answer

Correct

Incorrect
Question 15 of 51

15. Question

What is the key principle of adult learning relevant to staff training? Single Choice

Adults prefer passive learning
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Adults are motivated by external rewards only
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Adults are self-directed and goal-oriented
Correct Incorrect Correct answer

Adults require no feedback
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Correct

Incorrect
Question 16 of 51

16. Question

What is the purpose of a cost-benefit analysis in trust account management? Single Choice

To compare staff salaries
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To determine if the trust account is financially viable
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To audit the business
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To calculate tax
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Correct

Incorrect
Question 17 of 51

17. Question

What is the role of the CPA Code of Ethics in trust account management? Single Choice

To outline ethical principles for financial professionals
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To guide marketing practices
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To regulate conveyancing licenses
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To manage IT systems
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Question 18 of 51

18. Question

What is a trust ledger account used for? Single Choice

Recording staff attendance
Correct Incorrect Correct answer

Managing office petty cash
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Listing business assets
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Tracking client trust transactions
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Correct

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Question 19 of 51

19. Question

What is the best way to ensure staff understand trust account procedures? Single Choice

Send them a memo
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Let them learn on the job
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Provide ongoing training and feedback
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Ask them to read legislation
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Correct

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Question 20 of 51

20. Question

What is the consequence of failing to comply with trust account legislation? Single Choice

Increased profits
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Legal penalties and loss of license
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Better client relationships
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Reduced paperwork
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Correct

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Question 21 of 51

21. Question

Which of the following are key responsibilities of a trustee managing a trust account? Multiple Answers

Lodging trust tax returns
Correct Incorrect Correct answer

Authorising disbursements
Correct Incorrect Correct answer

Managing client confidentiality
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Marketing the trust account
Correct Incorrect Correct answer

Correct

Incorrect
Question 22 of 51

22. Question

What are considered source documents in trust account management? Multiple Answers

Duplicate trust receipts
Correct Incorrect Correct answer

Cheque requisitions
Correct Incorrect Correct answer

Staff rosters
Correct Incorrect Correct answer

EFT deposit records
Correct Incorrect Correct answer

Correct

Incorrect
Question 23 of 51

23. Question

Which principles are part of the Privacy Amendment Act (2000)? Multiple Answers

Collecting only necessary information
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Sharing records without consent
Correct Incorrect Correct answer

Obtaining informed consent
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Allowing clients access to their records
Correct Incorrect Correct answer

Correct

Incorrect
Question 24 of 51

24. Question

What are examples of ethical behaviour in managing trust accounts? Multiple Answers

Acting with integrity
Correct Incorrect Correct answer

Disclosing client details to unauthorised parties
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Maintaining confidentiality
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Being fair and accountable
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Correct

Incorrect
Question 25 of 51

25. Question

Which features are commonly found in electronic trust accounting systems? Multiple Answers

Administrative tools
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Electronic funds management
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Bookkeeping
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Security protocols
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Correct

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Question 26 of 51

26. Question

What actions should be taken when a discrepancy is found in a trust account? Multiple Answers

Clarify the cause
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Resolve the issue
Correct Incorrect Correct answer

Report to relevant authorities if needed
Correct Incorrect Correct answer

Ignore it if minor
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Correct

Incorrect
Question 27 of 51

27. Question

What are key components of a trust account reconciliation? Multiple Answers

Reviewing staff performance
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Matching deposits and withdrawals
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Comparing ledger balances
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Verifying interest payments
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Correct

Incorrect
Question 28 of 51

28. Question

What types of legislation affect trust account operations? Multiple Answers

Financial legislation
Correct Incorrect Correct answer

Privacy legislation
Correct Incorrect Correct answer

Environmental legislation
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Disclosure legislation
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Correct

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Question 29 of 51

29. Question

What are key features of trust account policies and procedures? Multiple Answers

Clear instructions on how to perform tasks
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Guidelines for ethical conduct
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Marketing strategies
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Compliance with legislation
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Question 30 of 51

30. Question

What are valid methods for disseminating trust account procedures to staff? Multiple Answers

Staff meetings
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Informal chats
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Intranet or shared drives
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Printed manuals
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Correct

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Question 31 of 51

31. Question

What should be included in a periodic financial report to a client? Multiple Answers

Account balances
Correct Incorrect Correct answer

Transaction history
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Formal audit information
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Management commentary
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Correct

Incorrect
Question 32 of 51

32. Question

What are valid sources of information for updating trust account requirements? Multiple Answers

Social media influencers
Correct Incorrect Correct answer

Government websites
Correct Incorrect Correct answer

Industry events
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Peak conveyancing bodies
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Correct

Incorrect
Question 33 of 51

33. Question

What are examples of indirect evidence in assessment? Multiple Answers

Third party reports
Correct Incorrect Correct answer

Observation by assessor
Correct Incorrect Correct answer

Supervisor feedback
Correct Incorrect Correct answer

Training records
Correct Incorrect Correct answer

Correct

Incorrect
Question 34 of 51

34. Question

What are key adult learning principles relevant to staff training? Multiple Answers

Adults are self-directed
Correct Incorrect Correct answer

Adults prefer irrelevant content
Correct Incorrect Correct answer

Adults bring life experience
Correct Incorrect Correct answer

Adults are goal-oriented
Correct Incorrect Correct answer

Correct

Incorrect
Question 35 of 51

35. Question

What are examples of supplementary evidence in competency assessment? Multiple Answers

Portfolios
Correct Incorrect Correct answer

Training records
Correct Incorrect Correct answer

Observation checklists
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Written work
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Correct

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Question 36 of 51

36. Question

What are appropriate actions when preparing for a trust account audit? Multiple Answers

Retain supporting documentation
Correct Incorrect Correct answer

Provide access to financial records
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Cooperate with auditors
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Hide discrepancies
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Question 37 of 51

37. Question

What are key features of trust ledger accounts? Multiple Answers

Record client transactions
Correct Incorrect Correct answer

Track office expenses
Correct Incorrect Correct answer

Maintain audit trails
Correct Incorrect Correct answer

Show balances per client
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Correct

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Question 38 of 51

38. Question

What are valid reasons to conduct a cost-benefit analysis for a trust account? Multiple Answers

To determine financial viability
Correct Incorrect Correct answer

To assess intangible benefits
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To justify marketing expenses
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To support client decision-making
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Correct

Incorrect
Question 39 of 51

39. Question

What are examples of professional behaviour in trust account management? Multiple Answers

Loyalty to clients
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Compliance with regulations
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Regular reviews
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Delivering high-quality work
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Correct

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Question 40 of 51

40. Question

What are key security measures for trust account operations? Multiple Answers

Password protection
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Locked filing cabinets
Correct Incorrect Correct answer

Access controls
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Public sharing of records
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Question 41 of 51

41. Question

Fill the Gaps

A trust account is used to hold money/funds on behalf of BLANK 1 of 1 in a conveyancing practice.

A trust account is used to hold money/funds on behalf of Fill in the blank 1 of 1 in a conveyancing practice.

Correct

Incorrect
Question 42 of 51

42. Question

Fill the Gaps

The BLANK 1 of 1 is legally responsible for managing the trust’s financial and compliance obligations.

The Fill in the blank 1 of 1 is legally responsible for managing the trust’s financial and compliance obligations.

Correct

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Question 43 of 51

43. Question

Fill the Gaps

Under the Privacy Act 1988, client information must be collected BLANK 1 of 1, fairly and unobtrusively.

Under the Privacy Act 1988, client information must be collected Fill in the blank 1 of 1 , fairly and unobtrusively.

Correct

Incorrect
Question 44 of 51

44. Question

Fill the Gaps

Trust account records must be kept for a minimum of BLANK 1 of 1 years after the last entry or finalisation of the matter.

Trust account records must be kept for a minimum of Fill in the blank 1 of 1 years after the last entry or finalisation of the matter.

Correct

Incorrect
Question 45 of 51

45. Question

Fill the Gaps

A BLANK 1 of 1 is a written statement explaining how a task should be performed in the workplace.

A Fill in the blank 1 of 1 is a written statement explaining how a task should be performed in the workplace.

Correct

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Question 46 of 51

46. Question

Fill the Gaps

BLANK 1 of 1 from a trust account must be authorised in accordance with legislative requirements and practice protocols.

Fill in the blank 1 of 1 from a trust account must be authorised in accordance with legislative requirements and practice protocols.

Correct

Incorrect
Question 47 of 51

47. Question

Fill the Gaps

Source documents such as trust receipts and EFT requisitions are used to record BLANK 1 of 1 details of each transaction.

Source documents such as trust receipts and EFT requisitions are used to record Fill in the blank 1 of 1 details of each transaction.

Correct

Incorrect
Question 48 of 51

48. Question

Fill the Gaps

Reconciliation involves comparing the trust account balance with BLANK 1 of 1 and payment records to ensure accuracy.

Reconciliation involves comparing the trust account balance with Fill in the blank 1 of 1 and payment records to ensure accuracy.

Correct

Incorrect
Question 49 of 51

49. Question

Fill the Gaps

Ethical behaviour in trust account management includes acting with integrity, confidentiality, and BLANK 1 of 1.

Ethical behaviour in trust account management includes acting with integrity, confidentiality, and Fill in the blank 1 of 1 .

Correct

Incorrect
Question 50 of 51

50. Question

Fill the Gaps

A cost-benefit analysis helps clients determine whether the BLANK 1 of 1 of maintaining a trust account outweigh the costs.

A cost-benefit analysis helps clients determine whether the Fill in the blank 1 of 1 of maintaining a trust account outweigh the costs.

Correct

Incorrect

Question 51 of 51

51. Question

Match the Term to the Definition