Audit Compliance Overview
Business property practitioners registered with the Property Practitioners Regulatory Authority are required to comply with legislated audit, trust account, and accounting requirements in the Property Practitioners Act.
Business Property Practitioners without a Trust Account Exemption Letter
Business property practitioners who have not applied, and been issued, with an exemption from holding a trust account, are required to open and keep open a trust account opened in terms of section 54(1) of the Act and may also open a trust account in terms of section 54(2) of the Act. The trust accounts are required to be audited annually by an auditor registered with the Independent Regulatory Board for Auditors (IRBA) within 6 months of the business property practitioner’s financial year-end.
Business property practitioner’s annual financial statements must be audited by the same registered auditor appointed to audit the trust accounts if the revenue of the practitioner is at least R2,5 million. If the annual revenue is below R2,5 million, the business property practitioner must have its annual financial statements independently reviewed by the same registered auditor appointed to audit the trust accounts. The audit or independent review of the annual financial statements must be performed within 6 months of the business property practitioner’s financial year-end.
Business Property Practitioners with a Trust Account Exemption
Business property practitioners that do not handle trust monies or who have mandated a Payment Processing Agent must apply to the PPRA to be issued with a trust account exemption letter under section 23(2) of the Act. From the effective date indicated in the issued trust account exemption letter, the business property practitioner is not required to submit the annual trust account audit report.
