Subject Title - INSETA

Sec 19(4) states that: the auditor of an authorised FSP must report to and inform the Registrar in writing of any irregularity or suspectedirregularity in the conduct or the affairs of the authorised FSPconcerned of which the auditor became aware in performing functions asauditor and which, in the opinion of the auditor, is material.Sec 19(5) provides that: if the FSP terminates the services of its auditor, the auditor mustprovide what the auditor believes to be the reasons for thetermination. if the auditor would have submitted a report in terms of s.19(4),such report must still be submitted.The FSB, on its website, provides detail on the type of financial statements tobe submitted as follows:In terms of section 19, all financial statements must be audited. TheRegistrar, however, exempted certain providers from the audit requirements.The following financial statements must be submitted:Category II, IIA, III and IV FSPs: audited financial statementsCategory I FSPs: Companies: audited financial statements. Sole proprietors and close corporations that do not receive clientfunds or premiums: unaudited financial statements. Sole proprietors and close corporations that do receive client funds orpremiums: audited financial statements.14.2 FINANCIAL RECORD-KEEPINGSection 19 (1) of the FAIS Act requires that the FSP keeps the accountingrecords updated on a monthly basis. We discussed this above.Part of the key individual's responsibilities is to ensure that there areadequate processes and procedures in place to facilitate an infrastructure toupdate the monthly management accounts and to report on it.240 © INSETA - Section 1 12a