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Estate Agency Affairs Act, 1976 (Act No. 112 of 1976)

Regulations

Trust Account of an Estate Agent and Investment of Trust Moneys

Schedule

Form of Auditor's Report referred to in regulation 2

 

 

SCHEDULE

Form of Auditor's Report referred to in regulation 2

The Manager

Estate Agents Board

P.O. Box 8793

JOHANNESBURG

2000

 

AUDITOR'S REPORT IN TERMS OF SECTION 32(4) OF THE ESTATE AGENTS ACT, 1976 (ACT NO. 112 OF 1976)

 

1. We have examined the books; records and accounting systems handed to us on ............................................... 19 ..................

of ...................................................................................................................................

Address..........................................................................................................................

.......................................................................................................................................

for the year ended on ............................................... 19.......

 

2.        In our opinion, based on our examination—

2.1 the said estate agent complied during the period in question with the provisions of sections 32(1), (2) and (3) of the Act.

[The Trust Accounts must be properly designated in the records of the Bank or Building Society e.g. " ......... Trust accounts in terms of sections 32(1) or (2) of Act 112 of 1976"];

2.2 on .............................................................................. 19 ........ .being the financial year end date, and also on .......................................... 19 ....... being one other date during that year selected by us on a surprise basis, the total amount standing to the credit of the trust banking account and any savings or other interest-bearing account kept by the said estate agent in terms of section 32(1) and (2) of the Act, together with any trust moneys which, according to such estate agent's accounting records, were held by him in cash on hand (which moneys we have satisfied ourselves were deposited in such estate agent's trust banking account on the first banking day following any of the said dates on which it might reasonably be expected that such moneys would be banked) were sufficient to cover the trust balances on the said dates;
2.3 the circumstances under which negotiable instruments deposited into the estate agent's trust banking account before the dates referred to in 2.2 above, and not subsequently honoured, appear to be satisfactory.
2.4 the system employed when transferring amounts (including interest earned) from such estate agent's trust banking account to his business account appears to ensure that on each occasion any such transfer is made the balance remaining to the credit of such trust banking account and any savings or other interest-bearing account referred to in section 32(2)(a) of the Act, together with any trust moneys held in cash on hand, amounts to not less than the trust balances;
2.5 During the financial year under review, interest amounting to R.............. was earned on moneys deposited in a trust banking account as contemplated in section 32(1) of the Act, and on moneys invested in an interest bearing account as contemplated in section 32(2)(a) of the Act. This interest has been dealt with as follows:

 

Total amount of interest earned

R.........................

Less paid out in terms of express written mandates [section 32(2)(c)]

R ........................

Balance

R ........................

Less amounts actually, promptly and regularly paid to the Fidelity Fund of the Board. (In terms of Government Notice R. 1415 of 3 July 1981, this amount should be 50 per cent of the above balance)

R ........................

Amount retained by estate agent

R ........................

 

*3. We have confirmed that the above undertaking has taken out an Employers Fidelity Guarantee Policy, No. ............................. in terms of section 26(b) of the Act, with ................................................................................................................................................................... (name of insurance company) for indemnity cover of a minimum of R5 000 per any one occurrence of theft per employee and that such policy has been renewed for a period of .......................... months ending on the .................................................. day of ................................................................. 19......

Auditors .................................................... Signature ..................................................

Address...................................................... Date of report ................................ 19......

....................................................................................................................................

Telephone No .............................................................................................................

 

* Delete paragraph if provisions of section 26(b) do not apply.

 

Notes

(i) The auditor must be a person registered in terms of section 23 of the Public Accountant's and Auditor's Act (No. 51 of 1951).
(ii) If the auditor is unable to furnish an unqualified report the fact thereof and the reasons therefore shall be fully set out in the report transmitted by him which shall otherwise be as far as possible in the above form.
(iii) All alterations must please be signed by the auditor.

[Schedule substituted by Notice No. R. 1157 of 1985]