Estate Agent AuditsWe provide audit services for estate agents, which include an audit of the financial statements and submission of the Estate Agency Affairs Board (EAAB) audit report.
The EAAB requires that the business practices and accounting records of an agent comply with the following:
1. Financial records that comply with IFRS or IFRS for SME’s have to be maintained.
2. The financial records must be audited within four months of the agent’s financial year-end.
3. A client ledger must be maintained to account for amounts owed to and by clients. The ledger must be reconciled every month.
4. The balance of the trust bank account may never be less than the balance owing to clients according to the client ledger.
5. The agent must have a valid Fidelity Fund Certificate.
6. The agent must be registered with the Financial Intelligence Centre.
7. All cash transactions over R25,000 must be reported to the Financial Intelligence Centre.
8. The agent must have a separate trust bank account. The name of the bank account in the bank’s records must contain a reference to section 32 of the Estate Agency Affairs Act.
9. All client monies must be deposited in the trust bank account. (This includes the monthly rental received by letting agencies.)
10. 50% of the interest earned by the agent on trust monies (excluding interest earned on express mandates to invest the monies for the account of the client) must be paid to the Fidelity Fund.
11. Client monies in trust bank accounts may not be disclosed as an asset in the financial records of the agent.
Contact us for assistance with your EAAB audit.