During April 2015 ABSA and Rand Merchant Bank (RMB) informed the audit industry that audit certificates should be requested directly from Confirmation.com and that they will no longer accept manual audit certificate requests. Of the four major banks, Standard Bank and FNB have already switched to this system in 2014. Nedbank is in the process of switching to the Confirmation.com system, but no fixed date has been set.
What is Confirmation.com?
Confirmation.com is a single, secure, web-based platform that allows authenticated audit firms to effectively manage and control the audit confirmation process, both internally and directly with authenticated financial institutions. This streamlines the process, improves efficiencies and reduces fraud risk for both auditors and audit clients.
How will ASL audit clients with ABSA and RMB bank accounts be affected?
As from April 2015, all outstanding audit certificate requests should be channelled through Confirmation.com. This is also applicable for financial years that ended before April 2015, and for which manual request forms were not submitted to these banks.
Audit clients will now provide electronic authorisation to allow the auditors to send electronic confirmations to a bank, as follows:
Cost implications of Confirmation.com
Confirmation.com charges a fee per individual transaction, i.e. per confirmation.
This cost per transaction is R213 per form, per bank, per client audit date.
These charges will be billed to clients in addition to the normal audit fee.
For an extended understanding of the Confirmation.com system, please refer to our April 2014 newsletter by following the link: http://asl.co.za/ASLBlog/?m=201404.