CATEGORIES
- (6) Negotiating Tax Debt and Payment Arrangements with SARS
- (2)Account / Profile
- (574)Accounting
- (4)Accounting & Financial Reporting
- (2)Accounting and Finance
- (29)Audit
- (165)Auditing and Assurance
- (1)Banking
- (1)Business
- (1)Business Management
- (3)Business Rescue
- (119)CIPC
- (7)Compliance
- (19)Ethics and Professionalism
- (47)Financial Reporting
- (1)Government Funding Applications
- (4)Guides
- (1)IFRS
- (1)Independent Reviews
- (1)Individuals Tax
- (41)Law
- (49)Legal and Compliance
- (2)Management
- (63)Miscellaneous
- (29)Money Laundering
- (1)Personal & Professional Development
- (2)Practice Management
- (2)Professional Ethics
- (3)Public Sector
- (145)Regulatory Compliance and Legislation
- (41)SARS Issues
- (32)Sustainability Reporting
- (45)Tax
- (1)Tax Update
- (11)Technology
- (1)Wills, Estates & Trusts
- Show All
CMS: Mandatory Auditor Rotation
- 09 October 2026
- Miscellaneous
- South African Accounting Academy
Summary:
The Council for Medical Schemes (CMS) has issued a circular introducing mandatory auditor rotation requirements, effective for financial years ending on or after 31 December 2028.
Article:
The Registrar is of the opinion that rotation requirements will promote independence and increase market competition within the medical scheme audit environment, resulting in enhanced audit quality, economic inclusion and transformation.
Notably, mandatory audit firm rotation will apply only to Public Interest Entity (PIE) medical schemes, while non-PIE schemes will remain subject to audit partner rotation requirements.
Independent Regulatory Board for Auditors (IRBA) Code of Professional Conduct (CPC) for Registered Auditors (Revised) paragraph R400.23 SA (l) defines PIE medical schemes as medical schemes, as defined in the MSA, with a membership in excess of 89 000 beneficiaries as at financial year-end.
PIE medical schemes must ensure that an audit firm, including a network firm as defined in the IRBA CPC (Revised), does not serve as the appointed auditor of a medical scheme for more than 10 consecutive financial years. The audit firm will only be eligible for reappointment as the auditor after the expiry of at least 5 financial years.
Section 36(2) of the Medical Schemes Act (131 of 1998) (MSA) states that: “The appointment of an auditor shall not take effect unless it has been approved by the Registrar, subject to such conditions as he or she may deem fit.”
The Registrar hereby sets out specific conditions in terms of the aforementioned Section 36(2) that are applicable to medical schemes and their audit committees as it pertains to the appointment of scheme auditors.
These conditions will be integrated into the Council for Medical Schemes (CMS) Audit Quality Indicators (AQIs) and are effective for the appointment of auditors for assurance engagements for financial years ending on or after 31 December 2028.
Click here to download Circular 27 of 2028:
https://www.medicalschemes.co.za/download/3819/2026-circulars-current/31344/circular-27-of-2026.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
- Auditors, Independent Reviewers and Accountants should always be aware of the latest publications issued by regulators and standard-setting boards, such as the IRBA and CMS, as well as what the impact will be on engagements performed on medical schemes.
- As an auditor of a medical scheme, you need comply with the auditor rotation requirements, and refer to relevant circulars issued by the Council for Medical Schemes that affect auditors.