New Estate Agency Affairs Board form

[QRS]

We have a problem with the following section on the new form.

"Our engagement arises from our appointment as auditor of _______________________________ [insert the name of the estate agency entity]. Our audit of the annual financial statements for the year ended ___________________was conducted in accordance with International Standards on Auditing and in our report of ________________________ [insert date] we expressed an unqualified / qualified / adverse[1] opinion or / a disclaimer of opinion on the financial statements prepared in accordance with ________________________ [specify financial reporting framework]"

The problem we have is that we do not do the audit of the Close Corporation, only the audit of the trust account. Another firm compiles the Annual Financial Statements of the entity.



According to the EAAB we should delete this section if it is not applicable, but a telephone call to IRBA advised that we should actually perform the audit of the entity as well as the audit of the trust account.

Please advise.

[Dave A]

but a telephone call to IRBA advised that we should actually perform the audit of the entity as well as the audit of the trust account.

Should or must ?

If the cc of the estate agency was a subsidiary of the trust account, I'd understand your professional interest in the cc. But the relationship is effectively the other way around.

You're not stating that all trust moneys received by the estate agency are being processed as they should via the trust accounts. You're saying that the monies received by the trust account are being appropriately managed.

That said, if the EAAB needs someone to sign off on that section, it seems they require an audit of the cc, not a compilation.