Property Practitioners: Illustrative Assurance Reports

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Property Practitioners: Illustrative Assurance Reports

• 22 March 2023
• Accounting
• South African Accounting Academy

The PPA envisions three categories of property practitioners, as follows:

• Property practitioners that do not handle monies in trust;
• Property practitioners that handle and manage their own trust accounts; and
• Property practitioners that handle and manage trust monies as well as trust monies on behalf of other property practitioners and that are also known as payment processing agents under the PPA.

The following 3 reports are available:

• Illustrative regulatory reports on the property practitioners trust accounts, Parts A and B;
• Illustrative limited assurance report on the payment processing agent's trust accounting environment; and
• Illustrative regulatory reports on the agreed-upon procedures engagement in respect of the payment processing agent's list of mandating client business property practitioners.

In terms of the PPA, every property practitioner who has not been exempted from keeping a trust account must appoint an auditor, who must perform an audit of the separate trust accounting records within 6 months of the financial year-end of the business property practitioner.

An assurance practitioner who performs an audit, as contemplated above, must electronically submit the audit report on the trust account/s to the Property Practitioners Regulatory Authority (PPRA) on the Auditors Portal (of the PPRA) within six months of the financial year-end of the business property practitioner.

Click here to download the Illustrative Reports:

• https://www.irba.co.za/upload/Illustrative%20regulatory%20reports%20on%20the%20property%20practitioners%20trust%20accounts,%20Parts%20A%20and%20B.pdf
• https://www.irba.co.za/upload/Illustrative%20limited%20assurance%20report%20on%20the%20payment%20processing%20agent%E2%80%99s%20trust%20accounting%20environment.pdf
• https://www.irba.co.za/upload/Illustrative%20regulatory%20reports%20on%20the%20agreed-upon%20procedures%20engagement%20in%20respect%20of%20the%20payment%20processing%20agent%E2%80%99s%20list%20of%20mandating%20client%20business.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• Property Practitioners Act (PPA) 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 Independent Assurance Practitioner, you need to comply with the relevant reporting requirements, and must therefor refer to the latest illustrative reports for your business property practitioner engagements.

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