Advice and Opinion

EAAB audit requirements

The Institute of Estate Agents, Western Cape, has had many enquiries from estate agents regarding the Estate Agency Affairs Board’s requirements for the 2014 audit, says Annette Evans, regional manager for the Institute.

Agents must not underestimate what is required by the EAAB to be fully compliant in terms of their yearly audit and full information on personal accounts and business accounts must be disclosed, warned Evans.

Agents should, too, be aware that they can be fined up to R10 000 and their Fidelity Fund Certificate revoked if their yearly audit is not clear, she said.

The EAAB have realised that the lack of compliance from estate agents might be due to lack of understanding of the statutory requirements of the Estate Agency Affairs Act and of other legislation such as the FICA requirements, said Evans, and because of this they are currently running a serious of workshops in various areas dealing with these.

“While many agents might not have been able to book for this road show or are unable to attend, it doesn’t mean that it’s a lost cause,” said Evans. “If there is a problem with understanding or not meeting the EAAB’s audit requirements, help can be obtained from other sources, the Institute will be able to help members by running a similar workshop which will cover efficient management of businesses and trust accounts, and includes accounting, record-keeping, auditing, and statutory and legislative requirements. (Details on this will be announced at a later stage.)”

“Estate agents can also rest assured that the EAAB board is thinking of dealing with smaller businesses differently to the larger agencies and if you are one of those smaller entities you are encouraged to voice your opinions and let them know what you, as the owner of a smaller agency, are currently experiencing difficulty with.”

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