2022 Trust Account Audits (Property Practitioners)

13 July 2022
Accounting
South African Accounting Academy

The Property Practitioners Regulatory Authority (PPRA) has issued the following 2 publications:

2022 Audit Reports on Trust Accounts; including important information and transitional provisions like, inter alia:
- The new Property Practitioners Act (the PPA) which came into effect on 1 February 2022 requires business property practitioners, who have not been exempted from keeping a trust account, to submit an audit report to the Property Practitioners Regulatory Authority (PPRA).
- According to the repealed Estate Agency Affairs Act (EAAA), audit reports on trust accounts were to be submitted to the Estate Agency Affairs Board (now PPRA) within 4 months of the estate agency’s financial year-end. The PPA, however, has extended the submission deadline from the previous 4 months to 6 months of the business property practitioner’s financial year-end.
- Accordingly, the submission deadline for business property practitioners with a financial year-end of 28 February 2022 is now 31 August 2022 and no longer 30 June 2022.
- Principals and auditors of business property practitioners are reminded to take note of the following transitional provisions set out in the document: and
Guidelines on Audit, Accounting Records and Trust Account Requirements for Business Property Practitioners.

For any further queries, please do not hesitate to contact the PPRA Audit Compliance Department by emailing [email protected].

Click on the following links download the 2 publications:

2022 Audit Reports on Trust Accounts: https://theppra.org.za/download.php?data_id=114545
Guidelines on Audit, Accounting Records and Trust Account Requirements for Business Property Practitioners: https://theppra.org.za/download.php?data_id=112731

Relevance to Auditors, Independent Reviewers & Accountants:

The Property Practitioners Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
As an auditor and independent reviewer, you need to consider and assess compliance with the PPA and Guidelines issued by the PPRA.
As an accountant, you may need to advise your clients who are property practitioners on compliance with the PPA and adherence to the latest guidelines issued by the PPRA.

Relevance to Your clients:

A property practitioner has a duty to comply with the Property Practitioners Act.
Your clients who are property practitioners, must not only comply with the PPA, but they also have to adhere to the latest guidelines issued by the PPRA.

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