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 Business Accountant in Practice [BAP(SA)] 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.    

2. Why It Matters to You 

AO reports give SMEs and entities legal compliance and credibility. 
Required by law for all close corporations. 
Recognised across multiple Acts (schools, trusts, co-operatives, NPOs, etc.). 
Provides funders, regulators, and owners with confidence in financial statements. 
Opens up new client opportunities for CBAPs in practice. 

3. Frameworks, Standards, or References 

AO engagements are anchored in statutory law and international standards. 

  • Statutory recognition: 

  • Close Corporations Act 69 of 1984 → mandatory AO appointment for close corporations. 

  • Immigration Act, 2002 → AO reports required in certain business visa cases. 

  • Sectional Titles Schemes Management Act, 2011 → AO reports (exemption from Ombud). 

  • Trust Property Control Act, 1988 → AO reports on trust financials (where deed requires). 

  • South African Schools Act, 1996 → AO reports for school finances. 

  • Non-Profit Organisations Act, 1997 → AO reporting for registered NPOs. 

  • FAIS Act, 2002 → AO exemption for smaller FSPs. 

  • National Credit Act, 2005 → AO reports for NCR compliance. 

  • Co-operatives Act, 2005 → AO reporting. 

  • Fund-Raising Act, 1978, Lotteries Act, 1997, Broadcasting Act, 1999, CIDB Act, 2000, and others → AO roles defined. 

  • Professional standards: 

  • ISRS 4400 → Agreed-Upon Procedures regarding financial information (basis for AO engagements). 

  • CIBA Guide to Accounting Officer Engagements → interpretation of ISRS 4400 for South Africa. 

  • Engagement letters → required to define scope, extent, and result (reduces engagement risk). 

  • Practice guidance & resources: 

  • CIBA Practice Support Library (illustrative AO reports, guides, and templates). 

  • CIPC step-by-step guides (annual returns, member changes, financial year-end changes, etc.). 

  • AccountingWeekly.com updates and case notes. 

4. How to Apply  

Steps to offer or use AO services: 

  1. Determine if your entity (e.g. CC, trust, NPO) is required by law to appoint an AO. 

  2. Engage a CBAP who is recognised as an AO under Section 60. 

  3. Sign an engagement letter defining scope and deliverables. 

  4. Accountant applies ISRS 4400 procedures and issues report. 

  5. Submit AO report to regulators, boards, or funders as required. 

5. Common Mistakes to Avoid 

Avoid pitfalls that increase risk and non-compliance: 

  • Not signing an engagement letter → increases liability. 

  • Using unqualified practitioners → only CIBA BAP(SA)s are recognised as AOs. 

  • Ignoring statutes outside the Close Corporations Act. 

  • Failing to align with ISRS 4400 standards.

6. Related Resources 

Stay informed and compliant with AO engagements: 

  • Guide: CIBA Guide to Accounting Officer Reporting Engagements 

  • Illustrative AO Reports 

  • CPD Webinar: How to Perform AO Engagements 

  • CPD Short Course: AO Engagements under ISRS 4400 

9. Need Help? 

We’ll support you in delivering AO reports that meet legal and professional standards. 

  • Contact the Technical Helpdesk 

  • Ask a Membership Advisor 

  • [Open a Support Ticket – tagged: Accounting Officer Engagements] & Tax Planning]