Providing non-audit services to audit clients All audit firms strive to add value to their clients, which often takes the form of providing additional non-audit services. Providing such non-assurance services to audit clients may, however, create an independence threat. It is important to identify, evaluate and address the threat to ensure that independence is maintained. This does not necessarily mean that the non-audit service should be terminated, depending on the circumstances, provided that adequate safeguards are in place. Providing accounting and other services to statutory audit clients Section 90(2)(b) of the Companies Act requires that, [...]

Auditors as trust and company service providers Since the amended Schedule 1 of the Financial Intelligence Centre Act, 2001 (FIC Act of 2001) became effective, many questions have arisen in practice regarding its interpretation. The FIC has now issued a Public Compliance Communication to provide more clarity and guidance on which entities need to register as accountable institutions. It is of critical importance that practitioners understand and implement this as a matter of urgency, as there are penalties for late registration. Definition of trust and company service providers (TCSPs) The list of accountable institutions contained in [...]

Accountable Institutions Schedule 1 to the Financial Intelligence Centre Act, 2001 (FIC Act) has been amended, and took effect from 19 December 2022. Some of the amendments to the list of accountable institutions have far-reaching consequences that not all practitioners may be aware of. They may result in many firms and their clients becoming accountable institutions, which implies a greater burden of compliance with the FIC Act. Schedule 1 to the FIC Act The amendments to the list of accountable institutions contained in Schedule 1 to the FIC Act, as published in the Government Gazette No. [...]