Banks: Input Sought on Auditors’ Reporting Obligations Directive

Posted 13 March 2026 Written by Acts Online
Category Financial Sector

Brought to you by SA Legal Academy: The Prudential Authority (PA) has invited stakeholders to comment on a draft directive concerning the reporting obligations of auditors, necessitated by recent regulatory updates.

In terms of the Banks Act, No. 94 of 1990, the PA has issued this draft directive to align auditor reporting requirements with the amendments to the Regulations Relating to Banks that have been in force since July 2025. The directive aims to standardise the scope and format of the reports auditors are required to submit to the regulator.

Once finalised, the directive will replace the current directive that has been in effect since March 2024. The PA has set a deadline of 27 March 2026 for the submission of comments and input on the draft text.

Key regulatory considerations

  • The directive specifically addresses reporting obligations arising from the July 2025 amendments to the regulations under the Banks Act, No. 94 of 1990.
  • It establishes the technical framework for auditor submissions to the Prudential Authority.
  • The transition from the March 2024 directive to the new framework will require updated audit procedures.

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

  • For yourself: You must review the draft directive to identify specific changes to reporting templates and technical standards to ensure your professional sign-offs remain compliant with the Banks Act, No. 94 of 1990.
  • For your business: Audit firms must update their internal quality management systems and audit methodologies to incorporate the revised reporting obligations and ensure alignment with the July 2025 regulatory changes.
  • For your clients: Banking institutions must ensure their internal data management and financial reporting systems are capable of providing the necessary information required for auditors to meet these updated regulatory reporting standards.

Originally published at https://legalacademy.co.za/news/read/banks-input-sought-on-auditors-reporting-obligations-directive

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