SAICA: Guidance on Sectional Title auditor opinions

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SAICA: Guidance on Sectional Title auditor opinions

• 16 January 2026
• Audit
• South African Accounting Academy

Summary:
The South African Institute of Chartered Accountants (SAICA) has updated and published their Guidance document for sectional title audits.

Article:

This Guidance is on Opinions required of the auditor in terms of Management Rule 26(5)(c) of the Sectional Titles Schemes Management Regulations (STSMR).

The document was previously revised in September 2022, August 2024 (Refer to our previous Alert dated 17 September 2024) and now, in December 2025.

A new clarifying sentence has been added to the illustrative report explaining that an auditor’s inability to accept an assurance engagement is not caused by any actions or inactions of the trustees in managing the body corporate’s financial affairs. Readers can refer to page 18 for the exact wording.

This document was revised in December 2025 to reflect the International Auditing and Assurance Standards Board’s Narrow Scope Amendments to ISA 700 (Revised) as a Result of the Revisions to the IESBA Code that Require a Firm to Publicly Disclose When a Firm Has Applied the Independence Requirements for Public Interest Entities. The narrow scope amendments to ISA 700 (Revised) are effective for audits of financial statements for periods beginning on or after 15 December 2024.

Contents:

1. Introduction – Management Rule 26(5)(c)
2. The body corporate’s audited annual financial statements as contemplated in Rule 26(5)(c)(i)
   • Financial Reporting Frameworks
   • Going Concern
   • Other Information
3. Compliance by the body corporate with certain accounting requirements in terms of Rule 26(5)(c)(ii)
4. Auditor opinions as contemplated in terms of Rule 26(5)(c)(iii) and (iv)
5. Illustration of separate section in the auditor’s report: Report on other legal and regulatory requirements
6. APPENDIX 1 Illustrative auditor’s report on a complete set of general purpose financial statements of a body corporate (i.e. sectional titles scheme) prepared in accordance with a fair presentation framework and the requirements of the Sectional Titles Schemes Management Act, 2011
7. APPENDIX 2 Illustrative auditor’s report on a complete set of special purpose financial statements of a body corporate (i.e. sectional titles scheme) prepared in accordance with a basis of accounting determined by the trustees (a compliance framework) and the requirements of the Sectional Titles Schemes Management Act, 2011

Where the document suggest a particular view, such a view is based on SAICA’s interpretation at that point in time, of the relevant laws, regulations, standards, codes and related pronouncements. Although SAICA consulted widely (with e.g. IRBA and CSOS), it is possible that a different view may ultimately be followed in practice; for example, in instances where the Community Schemes Ombud Service (CSOS) provides specific guidance or clarification.

Click here to download the 20-page Guidance document:

https://saicawebprstorage.blob.core.windows.net/uploads/resources/Section-Titles-Communication_Revised_December-2025.pdf 

Relevance to Auditors, Independent Reviewers & Accountants:

• Members of IRBA should stay up-to-date with the latest developments and guides that affect registered auditors.
• As an auditor, you need to consider whether your audit opinion is in line with Management Rule 26(5)(c) of the Sectional Titles Schemes Management Regulations.
• As a practitioner that services bodies corporate, you should be aware of the latest publications and guidance documents issued by regulators, e.g. SAICA.
• When expressing an opinion on the financial statements of bodies corporate, auditors should comply with ISAE3000 (Revised), ISA 700 (Revised), ISA 720 (Revised) and SAAPS 3 (Revised 2025).

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