The Committee for Auditing Standards (the CFAS) issued the Guide for Registered Auditors: Assurance Engagements on the Annual Financial Statements and Annual Statutory Returns of a Medical Scheme in March 2015.
The Council for Medical Schemes (CMS) published the various revised prescribed auditor report templates, which are included in this Guide as appendices, on 20 July 2016, by way of Circular 49 of 2016: Prescribed auditor report templates. The reports have been amended to be aligned to the new and revised Auditor Reporting Standards, as well as other revised International Standards on Auditing (ISAs).
These statutory required auditor reports have been developed by the CMS in consultation with the IRBA’s CFAS Medical Schemes Task Group, which includes auditors of medical schemes.
|Title||Date issued||Effective date||Download documents|
|Revised Guide for Registered Auditors: Assurance Engagements on the Annual Financial Statements and Annual Statutory Returns of a Medical Scheme (Updated for alignment to the IRBA Code of Professional Conduct (Revised November 2018))||27 November 2019||PDF | Word|
|Revised Guide for Registered Auditors: Assurance Engagements on the Annual Financial Statements and Annual Statutory Returns of a Medical Scheme||06 December 2018||Effective for engagements on accounting periods ending on or after 31 December 2018||PDF | Word|
|Guide for Registered Auditors: Assurance Engagements on the Annual Financial Statements and Annual Statutory Returns of a Medical Scheme||29 July 2016||Effective for engagements on accounting periods ending on or after 31 December 2016|
Warning to readers
Registered auditors are alerted to the fact that this Guide has not been updated for:
except for Appendix 5 – Report on the Financial Statements (ISA 700 (Revised) Report); Appendix 6 – Report on Parts 4 to 10 of the Annual Statutory Return (combined ISA 800 (Revised) and ISRE 2410 Reports); Appendix 7 – Assurance Report on Compliance with Sections 36(5) and 36(8) of the Act (ISAE 3000 (Revised) Report); and Appendix 8 – Report on the Summary Financial Statements (ISA 810 (Revised) Report); which have been updated.
The revised reports are included in this Guide as appendices. For ease of reference the reports are listed here, as published by the CMS. These reports are effective for year-ends of medical schemes on and after 31 December 2016.
Section 37(2) of the Medical Schemes Act of South Africa (the Act) requires an auditor to report on a medical scheme’s annual financial statements (AFS).
Circular 65 of 2015 requires the auditors of medical schemes in terms of Section 36(5)(d) and 37(2) of the Act to report on Key Audit Matters.
The ISA 700 (Revised) report provides reasonable assurance that the AFS are fairly presented, in all material respects, in accordance with the International Financial Reporting Standards and the requirements of the Medical Schemes Act.
All non-compliance matters, which are considered to be material by an auditor, should be reported under the sub-heading “Report on Other Legal and Regulatory Requirements”. Where no material instances of non-compliance have come to an auditor’s attention, a statement to this effect should be made.
This auditor report provides assurance through an audit of Parts 4 to 6.1 and 6.3 to 10 of the Annual Statutory Return (the Return), and a review of Part 6.2 of the Return of a scheme.
This auditor report is the format in which the CMS requires an auditor to report on all non-compliance matters by a medical scheme which have come to an auditor’s attention during the performance of the auditor’s functions as an auditor, as required by Sections 36(5)(b) and 36(8)(b) of the Act.
These sections are limited to the financial aspects of the Act which an auditor will address in the auditor’s normal audit procedures.
It should be noted that for purposes of this auditor report, materiality is set as one, as all non-compliance matters need to be reported to the CMS.