SAICA issues updated guidance on Sectional Title auditor opinions

Posted 16 January 2026 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The South African Institute of Chartered Accountants (SAICA) has updated its guidance for auditors performing engagements under the Sectional Titles Schemes Management Regulations.

In terms of Management Rule 26(5)(c) of the Sectional Titles Schemes Management Regulations (STSMR), promulgated under the Sectional Titles Schemes Management Act, No. 8 of 2011, SAICA has revised its guidance document for sectional title audits. This December 2025 update follows previous revisions in September 2022 and August 2024.

The primary purpose of the December 2025 revision is to align the guidance with the International Auditing and Assurance Standards Board’s (IAASB) Narrow Scope Amendments to ISA 700 (Revised). These amendments resulted from revisions to the IESBA Code, which now require firms to publicly disclose when they have applied independence requirements for Public Interest Entities (PIEs). These narrow scope amendments are effective for audits of financial statements for periods beginning on or after 15 December 2024.

Key updates in the revised guidance include:

  • The addition of a clarifying sentence to the illustrative report (page 18) explaining that an auditor’s inability to accept an assurance engagement is not necessarily a result of actions or inactions by trustees in managing the body corporate’s financial affairs.
  • Updated interpretations of relevant laws, regulations, and standards as of December 2025.
  • Refinements based on consultations with the Independent Regulatory Board for Auditors (IRBA) and the Community Schemes Ombud Service (CSOS).

SAICA notes that while the document reflects its current interpretation of the regulatory framework, practitioners should remain aware of specific guidance or clarifications issued by the CSOS, which may influence practice.

Click here to download the 20-page SAICA Guidance document.

What this means for you, your business, or your clients

  • For yourself: You must adopt the revised illustrative report wording found on page 18 of the guidance for all sectional title audit engagements to ensure compliance with the latest SAICA interpretations.
  • For your business: Audit firms must update their internal quality management systems and audit templates to reflect the Narrow Scope Amendments to ISA 700 (Revised) regarding independence disclosures for Public Interest Entities.
  • For your clients: Body corporates and their trustees must ensure their financial statements for periods beginning on or after 15 December 2024 are audited using the updated reporting standards to remain compliant with Management Rule 26(5)(c).

Originally published at https://accountingacademy.co.za/news/read/saica-guidance-on-sectional-title-auditor-opinions

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