Postal Services Act, 1998 (Act No. 124 of 1998)Accounting Separation Regulations for Reserved Postal Services14. Audit of Regulatory Financial Statements ("RFS") |
| 1) | RFS must be prepared and audited on an annual basis. They must be submitted to the Authority within six months after the operator's financial year end. |
| 2) | The licensed Operator must appoint an independent auditor to audit the annual RFS and must be a member of the Public Accountants and Auditors Board or the Auditor General. |
| 3) | The Licensed Operator must grant the auditor, or any person authorised by the Operator , the right of access at any reasonable time to the accounting and other records of the operator, and to require from an officer of the operator such information and explanation as he/she desires for the reasonable purposes of the audit. |
| 4) | The regulatory audit is to be conducted in accordance with the South African Institute of Chartered Accountants' Generally Accepted Auditing Standards. Materiality is to be set by the independent auditor in the context of each segment reported to the Authority. |
| 5) | All audit costs are to be borne by the operator. |
| 6) | The auditor shall, in his auditor's report, express an opinion on the following: |
| a) | Whether the RFS for the year ended have been properly prepared in accordance with the Accounting Manual and the Operator's Procedure Manual (that has been approved by the Authority); and |
| b) | Whether all changes to the Operator's Procedure Manual that materially affect the RFS for the year ended have been filed with, and approved by, the Authority. |
| 7) | The auditor shall also state in his auditor's report: |
| a) | Failure to obtain from the Licensed Operator all information and explanations that he/she requires and the Corporate Entity audited statutory financial statements being subject to a qualification by the auditor; |
| b) | Any material non-compliance with the Accounting Manual or Operator's Procedure Manual pertaining to the RFS, and the impact thereof; and |
| c) | Any other deficiency or failure, or such other matters arising from the audit as he/she considers should be reported, in respect of matters relating to the RFS. |
| 8) | The auditor's report must be attached to the RFS for the purposes of submission to the Authority. |
| 9) | The Authority may request meetings with the auditor to discuss the auditor's work, and the operator shall ensure that this is provided for in the letter of engagement or contract with its auditor. Where the Authority wishes to meet with the auditor, notice shall be given to the operator in writing detailing the matters to be discussed. |