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In order for a Conveyancing Attorney to register a bond, or transfer a property on behalf of a company or trust, they require an Audit Certificate. This certificate is in fact a Factual Findings Audit Report and must be prepared in accordance with the relevant International Audit Standard. This standard requires the auditor to document audit evidence on all the finding in the audit report. It is not to be taken lightly, as the lenders will hold the auditor responsible for any negligence thereon.
As such it is vital that we perform our required procedures and document the findings. Many clients are not aware that these audit procedures and documents need to be compiled, and that it is not merely a signature on a standard form.
The certificate requires us to confirm various lending requirements, as verified from the company statutory records, as well as the company Minute Book and MOI, and then confirm that they are in compliance with the Companies Act. In addition we are required to confirm the information as declared by the directors.
Often there is an additional requirement for the auditor to confirm solvency and liquidity.
All these items require us to collate and document audit evidence to substantiate the audit opinion.
We request clients to allow us sufficient time to fulfil our obligation as above. We will always perform the work as quickly as possible.
This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)