The Auditing Guidance Committee of SAICA wishes to clarify for all SAICA members in Public Practice, their responsibilities when issuing a Circular 13/2005 certificate for a company or individual, required for conveyancing.
Requests are often being received from attorneys to confirm the solvency of the company, compliance with S228 of the Companies Act (Disposal of major portion of the Assets of the Company), knowledge of reportable irregularities or that all shareholders are resident in South Africa. Care must be taken when signing such a report, to only make factual statements. (E.g. according to the last audited financial statements of Company C Pty Ltd at 29 Feb 2008, the company had net assets of Rx.) Where you cannot establish a factual situation, your report should be appropriately qualified.
Certain members are still issuing reports to the transferring attorney in terms of Circular 2/84 which was replaced in December 2005 by Circular 13/2005. The new prescribed format should be used. A copy of the Circular 13/2005 can be viewed on or downloaded from SAICA website by following this link: https://www.saica.co.za/documents/Circular_13.pdf
Furthermore where no mortgage bond is involved, the paragraphs dealing therewith should be deleted.