CMS Circular 22 of 2025: Audit Quality Indicators for Medical Schemes
Brought to you by SA Accounting Academy: The Council for Medical Schemes (CMS) has released a proposed template for Audit Quality Indicators (AQIs) to be utilized during the auditor appointment process.
In terms of section 36(1) of the Medical Schemes Act, No. 131 of 1998 (MSA), the CMS intends to implement these AQIs for the audits of financial statements for the financial year ending 31 December 2026. This development follows an engagement session held on 28 March 2025 between the CMS, audit committees, and auditors, where the implementation of such indicators received broad support.
The CMS is currently soliciting feedback on the following areas:
- The proposed AQI template to be used by audit committees during the appointment of auditors; and
- The necessity and inclusion of specific indicators related to ethics and governance.
Stakeholders and audit committees are required to review the proposed template and submit their formal comments to the CMS by no later than 31 July 2025.
Click here to download Circular 22 of 2025 and the AQI Template.
What this means for you, your business, or your clients
- For yourself: You must familiarize yourself with the proposed quality metrics to ensure that your professional conduct and audit execution align with the CMS’s evolving transparency requirements.
- For your business: Audit firms providing services to the medical schemes sector must evaluate their internal data collection systems to ensure they can accurately report on the proposed AQIs for the 2026 financial year.
- For your clients: Audit committees of medical schemes must prepare to incorporate these standardized AQIs into their auditor selection and evaluation processes to comply with the CMS regulatory framework under section 36(1) of the Medical Schemes Act, No. 131 of 1998.
Originally published at https://accountingacademy.co.za/news/read/cms-circular-22-of-2025-audit-quality-indicators-aqis