Bank return audits would track corrections from first filing
A Prudential Authority (PA) proposal published on October 21, 2026 would require bank auditors to report adjustments from initial returns to the final audited version. Comments close on November 20, 2026.
First filing to final opinion
The proposal would require auditors to start work on the first Banks Act (BA) returns submitted, but base their assurance opinion on the latest returns submitted within 120 days of financial year-end.
Banks must incorporate year-end adjustments and reporting corrections in the second submission, due within 90 calendar days.
Auditors must submit the opinion with the relevant returns and a detailed adjustment report using Annexure A. That report must distinguish reconciliation to audited annual financial statements from other findings or error corrections, and management-identified findings from auditor-identified findings.
Auditors would apply materiality thresholds and professional judgment; reports to the PA must be consistent with those sent to the bank's Audit Committee.
Deadline versions define the baseline
Auditors must obtain returns from Umoja and use the last version filed by 23:59 on the applicable deadline: business day 15, 20 or 30. The proposal applies to financial years ending on or after February 28, 2027.
Issued under section 6(6) of the Banks Act 94 of 1990, it covers audits and reviews under regulations 46 and 7. Chief Executive Officer Fundi Tshazibana signs the document.
Comments go to Ramatla Msimanga by November 20, 2026; the South African Reserve Bank may publish them unless respondents request confidentiality.
Corrections remain visible
The PA says inconsistent audit baselines create an uneven playing field among banks.
Auditing only corrected returns removes resolved errors from auditors' reports and limits supervisory visibility.
The proposal pairs assurance on the latest returns with a record of corrections to preserve that visibility.
IN: