Final answer:
The false statement about client trust accounts is that they must be audited annually by an independent auditor, as this requirement can vary by jurisdiction and is not universal.
Step-by-step explanation:
The false statement concerning the requirements of a client trust account is (D) A client trust account must be audited annually by an independent auditor.
A client trust account does indeed serve as a separate bank account used to hold client funds, and it is essential that it is kept separate from the lawyer's personal bank account. All lawyers who handle client funds are generally required to have a client trust account. However, while it is critically important that lawyers handle these accounts with the utmost care to avoid any impropriety or the appearance of impropriety, there is no universal requirement that a client trust account must be audited annually by an independent auditor. This requirement can vary by jurisdiction and by the rules of the state bar or other regulatory agency, but it is not a universal requirement.