CMS Issues Guidance on Joint and Shared Audit Engagements for Medical Schemes

Posted 09 October 2026 Written by Acts Online
Category Auditing & Assurance

Brought to you by SA Accounting Academy: The Council for Medical Schemes (CMS) has released regulatory guidance encouraging medical schemes and their audit committees to consider joint or shared audit engagements.

In terms of the Medical Schemes Act, No. 131 of 1998, the Registrar of Medical Schemes released Circular 28 of 2026, titled “Fostering Greater Auditor Inclusion in the Audit of Medical Schemes”. The regulator issued the guidance to address concentrated market participation caused by the regulatory complexity of the sector and the technical reporting demands under IFRS 17 (Insurance Contracts).

In line with paragraph A72 of the International Standard on Quality Management (ISQM) 1, registered audit firms must evaluate their capability and the availability of personnel with relevant industry competence prior to accepting or continuing an engagement. The CMS notes that joint and shared engagements provide a mechanism to facilitate skills transfer and broaden transformation, subject to the prudent financial management of scheme funds.

Key regulatory priorities emphasised for audit committees and practitioners include:

  • Facilitating skills transfer and technical capacity building for emerging audit firms on complex IFRS 17 frameworks;
  • Safeguarding auditor independence, objectivity, and rigorous engagement quality; and
  • Promoting broader competition and transformation in the assurance market while maintaining statutory audit continuity.

Click here to download CMS Circular 28 of 2026.

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

  • For yourself: Registered auditors seeking entry into the healthcare assurance sector must document compliance with ISQM 1 resource and technical competencies, particularly around IFRS 17.
  • For your business: Audit firms tendering for medical scheme audits must assess joint venture or shared engagement frameworks to meet transformation and market inclusion expectations without compromising engagement quality.
  • For your clients: Medical scheme boards and audit committees must review their external auditor procurement frameworks to determine whether joint or shared audit appointments are commercially and operationally feasible.

Originally published at https://accountingacademy.co.za/news/read/cms-joint-and-shared-audit-engagements

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