In Part 6 of this newsletter we looked at the role a managing agent plays in a scheme.
In Part 7 of this series we are going to look at the role of a auditor when it comes to auditing the books of account for a sectional title scheme.
In terms of the Sectional Titles Scheme Management Act (STMA) a qualified auditor must audit the books of account of a body corporate on an annual basis, irrespective of how many units there are in the scheme.
Only an auditor who is accredited to perform an audit in terms of the Auditing Professions Act 26 of 2005, may be appointed by the body corporate at an annual general meeting (AGM) to perform the audit.
In the interest of accounting transparency, the appointed auditor must not have assisted in preparing the annual financial statements or assisted the body corporate in any way by giving it advice for the financial period that the audit is being done.
Article courtesy of Marina Constas and Karen Bleijs Demystifying Sectional Title
In Part 8 of this newsletter we will look at the Executive Managing Agent.