Subject Title - INSETA

It is also important to ensure that the processes and procedures allow theauditing firm/accounting officer to be organisationally independent from theFSP (or the group of which is it part of) and able to maintain an objectiveframe of mind in accomplishing its responsibilities.Section 19(4) requires an auditor to inform the Registrar in writing of anyirregularities or suspected irregularities in the affairs of the FSP.SummaryFSPs must ensure that the principles relating to accounting andauditing are adhered to.Accounting records must be updated monthly, as required by Section19 of the FAIS Act.Financial statements must be prepared to reflect:– the financial position of the entity at its financial year-end.– results of operations, receipt and payment of cash and cashequivalent balances.– additional GAAP requirements.– summary of significant accounting policies and explanatorynotes.The auditor of an FSP must:– report to and inform the Registrar in writing of anyirregularity or suspected irregularity in the conduct or theaffairs of the authorised FSP concerned of which the auditorbecame aware in performing functions as auditor and which,in the opinion of the auditor, is material.Self-Assessment QuestionsPlease note that the questions which follow are formative in nature. Thequestions were not developed by the FSB‟s examination bodies and as suchcannot be used as an indication of the nature/structure/level of the questionsthat you will encounter in the FSB‟s regulatory examination.1. Section 19 of the FAIS Act stipulates the accounting and auditrequirements which an FSP must adhere to.a) Trueb) False© INSETA - Section 1 12a 241