Practice and Disclosures, 25% of the examination
Trust account reconciliation
The monthly comparison of the bank record, the account control record, and the total of all separate beneficiary records.
All three figures should agree after legitimate timing differences are explained. A bank balance alone cannot prove that each beneficiary's money is intact. California regulations require the reconciliation at least monthly and require a record of it.
See also
Test the distinction
A relevant question from Practice and Disclosures, selected because its facts or explanation use this concept.
A broker's trust account holds funds for eight separate transactions. What must the broker maintain in addition to the bank record?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.
Primary sources
Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.