Knowledge Centre
CBAPs recognised as Accounting Officers can issue statutory reports that SMEs, NPOs, trusts, and close corporations depend on.
Accounting Officer Engagements
1. What You Need to Know
Accounting Officer (AO) appointments are legally recognised in South Africa. Under Section 60 of the Close Corporations Act (1984), a Chartered Business Accountant in Practice (CBAP) is recognised as an AO. They can issue reports on financial statements and other information for close corporations and entities where statutes require it. Their authority comes from both statutory recognition and CIBA membership.
As an AO you are not providing assurance, you’re offering independent verification in line with ISRS 4400. It is a statutory reporting service that many small entities rely on instead of an audit.
2. Why It Matters to You
Providing AO services adds credibility to your clients, and steady income to your practice.
Required by law for all Close Corporations
Recognised in several Acts (e.g. NPOs, schools, trusts, visas)
Low risk, high-trust service offering with no assurance required
Builds long-term client relationships based on statutory compliance
Positions you as a trusted verifier for regulators, funders, and boards.
3. Frameworks, Standards, or References
Accounting Officer engagements must align with statutory and international standards.
Professional standards
The professional standards and guidance below apply for accounting officer engagements:
ISRS4400 Revised Agreed Upon Procedures
Provides the framework for performing factual findings procedures, which form the basis of Accounting Officer reports.
CIBA Guides and Templates
Below you can look at the teaser versions of the CIBA guides and templates you can use to perform AO engagements. The full guides you can download from your CIBA member profile under ‘Free Educational Guides’.
CIBA Member Guide to Accounting officers Reporting Engagements
Provides an interpretation of ISRS 4400 for South Africa.
Engagement Letter for Agreed Upon Procedures
Required to define scope, extent, and result (reduces engagement risk).
Illustrative Report for AO Engagements
Provides the format for the AO report in line with ISRS4400.
Statutory Recognition for AO
AO engagements are recognised in various pieces of legislation, either through explicit statutory requirements or accepted regulatory practice.
Close Corporations Act 69 of 1984Requires all close corporations to appoint an AO to issue a report confirming the financial statements agree with the records and noting any contraventions of the Act.
Non-Profit Organisations Act, 71 of 1997
Requires registered NPOs to appoint an AO to report on whether the financial statements are consistent with the records and whether the NPO complies with its constitution and the Act.
Immigration Act No. 13 of 2002
Requires business visa applicants to demonstrate that their business is operational and financially sound, which may include a report by an Accounting Officer.
Recognises CIBA as a professional body whose members are authorised to issue AO reports for business visa applications.
South African Schools Act No 84 of 1996
Allows public schools to appoint an Accounting Officer to report on financial records where an audit is not legally required.
Trust Property Control Act, 1988
Requires an Accounting Officer report on trust financials where the trust deed explicitly provides for such an engagement.
Financial Advisory and Intermediary Services Act (FAIS Act), 2002
Regulatory guidance has allowed smaller FSPs to submit AO reports confirming record-keeping and financial accountability as an alternative to audits.
National Credit Act, 34 of 2005
Requires credit providers to report their financial position to the National Credit Regulator (NCR). AO reports may be accepted to confirm that proper records are kept.
Sets out governance and reporting obligations based on size and structure. Small co-operatives may use AO reports where audits are not required.
Entities that raise public funds must submit financial statements. AO reports may be accepted as evidence of proper financial management for smaller entities.
Beneficiaries of lottery funding must submit financial statements to the National Lotteries Commission. AO factual findings reports are often accepted for smaller grants.
Community broadcasters may be required to report on licence-related financial conditions. In practice, AO reports are accepted by some regulators where full audits are not required.
Construction Industry Development Board (CIDB) Act, 2000
While not mandated, smaller contractors often use AO reports to verify financial records for CIDB registration or grading when audits are not required.
4. How to Apply
Here’s how to deliver AO services as a CBAP:
Confirm whether the entity is legally required to appoint an AO
Ensure you're qualified and recognised as a CBAP
Sign an engagement letter, this is non-negotiable for scope + liability
Apply ISRS 4400 procedures: review records, confirm accuracy, note any issues
Submit the AO report to the regulator, funder, or client as required
5. Common Mistakes to Avoid
Avoid these AO engagement pitfalls:
Skipping the engagement letter → opens you to liability
Signing reports without being a recognised AO → only CBAPs are valid
Confusing AO work with audits or reviews → no opinions or assurance
Overlooking other Acts that require AO reports → it’s not just CCs
Failing to follow ISRS 4400 → factual findings only, not conclusions
9. Need Help?
Any assistance required for technical enquiries, membership related queries, access to the system you need to log into your member profile and: