Audit report requirements

The Estate Agency Affairs Board have made it clear that all estate agents, whether they operate as sole proprietors, close corporations, Pty Ltd companies or partnerships of any kind, need to adhere to the audit requirements as set by the EAAB’s legislation, says Annette Evans, regional manager of the Institute of Estate Agents, Western Cape.

“While this seems to be a confusing and complicated process, all the steps are listed and agents should go through them meticulously,” she said.

There is an audit report format that has to be followed, which includes an audit report form (which can be downloaded from www.eaab.org.za/audit_compliance), and all estate agencies should make sure that their accounting records are audited within four months of the last day of their financial year. The auditor must be registered with the Independent Regulatory Board for Auditors and the records that are to be included are:

· documents showing all monies received and paid out, whether to a trust account or invested in a savings or other account;

· all assets and liabilities;

· all financial transactions; and

· the financial position of the business.

The audit reports are to be submitted by the appointed auditor to audit@eaab.org.za and not the agent or agency, as the EAAB would prefer to avoid duplications. Agents are responsible for making sure that their auditor submits the relevant report in time, reminded Evans.

While the Institute will be running an Audit and Statutory Regulations Compliance workshop, which will also include further information on audit on Thursday 23rd January 2014, it is also advised to email the audit compliance manager at the EAAB, Pierre Olivier on pierre.olivier@eaab.org.za, so that they can deal directly with queries regarding audits in the interim, said Evans.

Evans also suggested agents log in to the MyEAAB section of their website, so that they can check and confirm all the details the EAAB has on record.