Relevance to Auditors, Independent Reviewers & Accountants:
The Employment Equity 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 whether your client is a designated employer, and confirm that they have submitted their EE Report accordingly.
Should you be a designated employer, you also need to comply with the Employment Equity Act in your workplace, and submit your EE report, as prescribed.
Relevance to Your Clients:
An entity (company or close corporation) who is a designated employer, has a duty to comply with the Employment Equity Act in your workplace, and submit their EE report, as prescribed.
An entity might wish to confirm that a prospective client/supplier is compliant with the EE Act before, e.g. awarding a tender.
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