ONLINE AUDIT REPORT SUBMISSIONS AND DISQUALIFICATIONS DUE TO NON-COMPLIANCE WITH AUDIT REPORTS SUBMISSION REQUIREMENTS
The prescribed time-frame of four months for the submission of audit reports for the estate agencies with a financial year-end of 28 February 2015 came to an end on 30 June 2015.
Online audit report submissions
With effect from 1 March 2015, the Estate Agency Affairs Board (EAAB) determined, in terms of section 32(4) of the Estate Agency Affairs Act (the Act), the sole manner of submission of audit reports to be the MyEAAB Auditors Portal, accessible through the EAAB website.
The EAAB is pleased to inform estate agents and their auditors that the online audit report submissions has exceeded expectations and has been an incredible success. From 1 March 2015 to 30 June 2015, over 5 000 audit reports were successfully submitted online for the 2015 financial year by auditors of estate agencies through the MyEAAB Auditors Portal.
The EAAB would like to thank estate agencies and their auditors for embracing the MyEAAB Auditors Portal and adhering to the pronouncement of 1 March 2015 regarding online audit report submissions.
The estate agencies whose audit reports were submitted online by 30 June 2015 will be able to successfully renew and obtain their 2016 Fidelity Fund Certificates (FFCs) during the renewal period which starts on 1 July 2015 and ends on 31 October 2015.
In order to enhance the MyEAAB Auditors Portal further for the benefit of the estate agencies and their auditors, EAAB will soon send out acknowledgement letters and evaluation forms to the auditors who used the MyEAAB Auditors Portal during this 2015 audit cycle. The evaluation forms will inform further changes that may be required to be made to enhance the efficiency and effectiveness of the MyEAAB Auditors Portal.
Disqualifications due to non-compliance with audit report submission requirements
All estate agency firms who have not submitted, or submitted outside the prescribed timeframe, audit report(s) for one or more financial years have been disqualified in terms of section 27(aA)(i) of the Act.
The principals of these disqualified estate agency firms will soon be notified, through email, of the disqualification and the process to be followed in order to regularise their registration status with EAAB.
All 2015 FFCs in the possession of the disqualified estate agency firms are no longer of any force and effect, and are hereby withdrawn in terms of section 16(4) of the Act. The disqualified estate agency firms will not be able to renew and obtain the 2016 FFCs.
The disqualification of the estate agency firms and the withdrawal of FFCs apply, not only to the estate agency firms, but also to all estate agents, whether principal or non-principal, within the service and/or employment of that disqualified firm.
The EAAB endeavours to expedite the regularisation of the registration status of the disqualified estate agents firms and in this regard, the principal(s) of the disqualified estate agency should:
- Request their auditor to register on MyEAAB Auditors Portal via http://www.eaab.org.za/myaudit and upload the outstanding audit report(s) online via this website link.
- Email the audited financial statements for the financial years relating to the outstanding audit reports to firstname.lastname@example.org .
- Email an affidavit by the principal(s), signed and stamped by a Commissioner of Oaths, to email@example.com :
- Detailing the history and experience within the estate agency industry;
- Reasons for non-compliance with the provisions of the Act; and
- Reasons why it is considered to be in the best interest of justice to be issued with a Fidelity Fund Certificate.
On receipt of the audit report(s), audited financial statements and affidavit, the matter will be considered by EAAB’s Section 27 Department and:
- For those estate agency firms:
- whose audit reports, audited financial statements and affidavits meet the conditions and criteria set by the EAAB board;
- who admit guilt; and
- and do not object to the payment of a penalty,
a penalty will be levied for the non-compliance with the audit report submission requirement and the disqualification removed on payment of the penalty.
- For those estate agency firms who do not fall in category A above, a charge letter will be issued by EAAB’s Legal Department and the disqualification will be removed subject to the outcome of the disciplinary committee proceedings and the section 27 application processes.
All further queries from disqualified estate agency firms should be directed to the EAAB’s Section 27 Department at firstname.lastname@example.org
The EAAB reserves the right, at its sole discretion and in addition to any administrative penalty having been levied, to institute formal processes relating to any non-compliance with the provisions of the Act.
AUDIT COMPLIANCE DEPARTMENT
ESTATE AGENCY AFFAIRS BOARD
Telephone: 087 285 3222
AUDIT COMPLIANCE NOTIFICATION
IT3b CERTIFICATES AND AUDIT CONFIRMATION LETTER
01 JUNE 2015
It has come to our attention that a number of auditors of estate agents submitting the audit reports online are having difficulties or experiencing delays in obtaining the IT3b certificates from the banks and/or experiencing difficulties in understanding the contents of the Audit Confirmation Letter required as part of documents to be uploaded when submitting the audit report online.
We hereby advise that it will be acceptable for the auditor to attach a covering letter (in place of the IT3b certificate) explaining the reasons why the IT3b certificate could not be obtained and attached when submitting the audit report online. The delays or difficulties in obtaining the IT3b certificates from banks should not delay the submission of the audit reports within the prescribed four months after the financial year end.
Audit Confirmation Letter
We hereby advise that the contents of the Audit Confirmation Letter required to be uploaded when submitting the audit report online should be as follows:
- The letter should be on the audit firm’s letter, Duly signed by the designated individual auditor responsible for the audit, and Confirming that an audit of the specific estate agency was performed for the specific financial year .
Principals of estate agencies are encouraged to share the contents of this notification with their auditors in order to avoid late audit report submissions arising from difficulties in obtaining the IT3b
certificates or completing the Audit Confirmation Letter.
We also reiterate the contents of the notification sent on 4 March 2015 and available on the EAAB website which indicates that EAAB no longer accepts audit reports that are emailed, faxed, hand-delivered or posted. Only audit reports submitted by the auditor online on the MyEAAB Auditors Portal accessible through the EAAB website will be accepted as having been submitted in terms of section 32(4) of the Estate Agency Affairs Act.
AUDIT COMPLIANCE DEPARTMENT
24 March 2015
FREQUENTLY ASKED QUESTIONS FOR AUDITORS OF ESTATE AGENTS – ISSUED IN MARCH 2015
- Which estate agents must have their accounting records audited?
The Estate Agency Affairs Act, No. 112 of 1976 (the Act), section 29(1)(b), states that every estate agent shall, in respect of his/her activities as an estate agent, cause his / her accounting records to be audited.
Estate agent activities can be performed under different legal forms of business, such as a sole proprietorship, a company, a close corporation or a partnership.
The accounting records to be audited are, therefore, those of the relevant legal form of business through which the estate agent conducts the estate agent activities. Read More.
04 March 2015
IMPORTANT NOTIFICATION AUDITOR’S REPORT SUBMISSION
ONLY AUDITOR’S REPORTS SUBMITTED ONLINE WILL BE ACCEPTED FOR THE 2015 FINANCIAL YEAR
The financial year end of most estate agency firms of 28 February is upon us and this notification conveys the new requirement in relation to submission of audit reports with effect from 1 March 2015.
In terms of section 32(4) of the Estate Agency Affairs Act, auditors are required to submit the audit reports within the prescribed time-frame of four months and transmit the audit report to the Estate Agency Affairs Board (EAAB) in the form determined by the EAAB from time to time.
In compliance with the provision of the above section and with effect from 1 March 2015, the EAAB has determined the sole manner of transmission of the audit reports by the auditor to EAAB to be the MyEAAB Auditors Portal, accessible through the EAAB website via the link http://www.eaab.org.za/myaudit Read More.
04 December 2014
DISQUALIFICATION OF ESTATE AGENTS RELATING TO FIDELITY FUND CERTIFICATES DUE TO NON-COMPLIANCE WITH AUDIT REPORTS SUBMISSION REQUIREMENTS
The Estate Agency Affairs Board (EAAB) would like to thank all estate agency firms who complied with section 29(b), section 32(3)(b) and section 32(4) of the Estate Agency Affairs Act (the Act) by causing an audit of the trust account and the business and submitting the audit reports within the prescribed timeframe of four months after the financial year end.
Following the finalisation of the internal processing of the audit reports emailed, posted or submitted to the EAAB, all estate agency firms who do not have an audit report for one or more financial years on our system have been disqualified in terms of section 27(aA)(i) of the Act. Read More.
08 September 2014
ONLINE SUBMISSION OF AUDITORS REPORTS
The Estate Agency Affairs Board (EAAB) would like to thank the estate agencies that ensured that their auditors registered and submitted the 2014 audit reports online through the MyEAAB Auditors Portal. These estate agents and their auditors received real time update benefits and were eligible to renew their Fidelity Fund Certificates for 2015 from 1 July 2014. EAAB encourages these estate agencies and their auditors to continue submitting online the audit reports for 2015 and coming financial years.
For those estate agencies and auditors who did not manage to submit the 2014 audit reports online through the MyEAAB Auditors Portal but instead emailed their auditors reports or submitted them at our offices, kindly note that the bulk of these 2014 auditors’ reports have already been internally processed and the remaining ones are still being internally processed. These 2014 auditors’ reports should not be submitted again online as this will create duplications. However for 2015 and the coming financial years, these estate agencies and their auditors are encouraged to register on MyEAAB Auditors Portal and submit their auditors reports online. Read More.
28 August 2014
CLARIFICATION ON THE ISSUE OF 2015 FIDELITY FUND CERTIFICATES
The Estate Agency Affairs Board received a large volume of auditor’s reports in May and June 2014 and is currently capturing these auditor’s reports on our system. The process of capturing of these auditor’s reports is continuing and is anticipated to be finalised by the end of September 2014.
At this stage, not all 2014 auditor’s reports received in May and June 2014 have been captured and estate agents who are informed that their auditor’s report is not yet on the system are requested to bear with us as we finalise the internal processing of the submitted auditor’s reports.
The large volumes of auditor’s reports received that are awaiting internal capturing means that the 2015 Fidelity Fund Certificates will be issued as and when the 2014 auditor’s report has been captured. Read More.
22 August 2014
SUBMISSION OF AUDITOR'S REPORTS TO THE ESTATE AGENCY AFFAIRS BOARD
In terms of section 32(4) of the Estate Agency Affairs Act, auditors are required to submit the audit reports within the prescribed time-frame of four months and transmit the audit report to the Estate Agency Affairs Board in the form determined by the EAAB from time to time.
In compliance with the provision of this section, the format of the audit report to be submitted can be downloaded in the link below. In addition, EAAB has determined the manner of transmission of the audit report to EAAB by the auditor to be the MyEAAB Auditors Portal, accessible through this website. All auditors are required to register on the MyEAAB Auditors Portal and they will receive a password once they have registered. The auditors will then be required to log-in on this portal and electronically submit the audit report online. Once the audit report has been completed and submitted online, it will in real time update the EAAB system and a confirmation email is sent to the auditor and the principal estate agent of the firm. Read More.
27 June 2014
AUDIT REPORT COMPLIANCE - IS YOUR FINANCIAL YEAR-END 28 FEBRUARY?
To all Principal estate agents
It has come to our attention that a number of estate agency firms are having difficulty in obtaining the IT3B certificates from their respective bankers for submission as part of the audit report documentation requirements.