Subject Title - INSETA

PurposeChapter 14 introduces you to the auditing and accounting requirements thatan FSP must adhere to. We look at the maintenance of accounting recordsand preparation of financial statements as prescribed by section 19 of theFAIS Act. There is an onus on the auditor to report irregularities or similarsuspicions to the Registrar.14.1 AUDITING AND ACCOUNTING REQUIREMENTSSection 19 of the FAIS Act stipulates the accounting and audit requirementsthat an FSP must adhere to, which are:Sec 19(1) states that unless exempted, an FSP must do the following withregard to the FAIS business under its licence:Accountingrecords Maintain full and proper accounting records on acontinuous basis, brought up to date monthly. 154Financial Prepare annual financial statements which shows: 155statements (i) the financial position of the entity at its financialyear-end;(ii) the results of operations, the receipt and paymentof cash and cash equivalent balances;(iii) all changes in equity for the period then endedand any(iv) additional components required in terms of SouthAfrican Generally Accepted Accounting Practicesissued by the Accounting Practices Board orInternational Financial Reporting Standards,issued by the International Accounting StandardsBoard or a successor body; and(v) a summary of significant accounting policies andexplanatory notes on the matters referred to inparagraphs (i) to (iii).154 Section 19(1)(a) of the Act155 Section 19(1)(b)(i) to (iv) of the Act238 © INSETA - Section 1 12a