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Financial records hold some of the most sensitive personal data — employee details, supplier banking info, customer accounts. Yet many companies focus on POPIA compliance in marketing or HR, and forget that their audit trail may expose the biggest risks. Here’s how to ensure your audit and accounting processes stay compliant with South Africa’s Protection of Personal Information Act (POPIA).

Where POPIA Risks Hide During Audits

• Auditors and clients exchange large volumes of information. Common weak points include:
• Unsecured file transfers (emailing Excel sheets with IDs and salaries).
• Shared drives without access control.
• Unredacted supporting documents (bank statements, contracts).
• Old audit files stored beyond legal retention periods.
• Even a minor breach can trigger regulatory action or reputational harm.

The Auditor’s Responsibility

Auditors are independent operators, not just service providers — meaning both the audit firm and the client share responsibility for safeguarding information.
IRBA’s Code of Professional Conduct and ISQM standards require firms to:

• Use secure communication tools.
• Limit staff access to client data.
• Destroy or archive files properly after retention deadlines.

What Businesses Should Do Before the Audit

• Designate a POPIA Champion to liaise with your auditors.
• Mask or anonymise personal data where full details aren’t required.
• Use password-protected uploads or client portals for audit documents.
• Update your consent and privacy notices to include audit-related processing.
• Review your data-retention policy to match audit cycle timelines.

SC Audit’s Approach to Data Security

• At SC Audit, we follow a “privacy-by-design” philosophy:
• Secure file-transfer platforms for all clients.
• Minimal-data principle — we only collect what’s essential.
• Staff POPIA training and confidentiality undertakings.
• Encryption and regular system audits.

This ensures your information stays protected throughout the audit process.

Need help aligning your financial and audit data with POPIA? Get in touch for a privacy-compliance checklist or consultation.

Frequently Asked Questions

Where do POPIA risks commonly hide during an audit?
Common weak points include unsecured file transfers such as emailing spreadsheets with personal information, shared drives without access control, unredacted supporting documents like full bank statements, and old audit files stored beyond legal retention periods.

Who is responsible for data protection during an audit — the auditor or the client?
Both the audit firm and the client share responsibility. IRBA’s Code of Professional Conduct and ISQM standards require auditors to use secure tools and limit staff access, while clients must implement safeguards when sharing information with their auditors.

What should businesses do before an audit to ensure POPIA compliance?
Designate a POPIA champion, mask personal data where full details are not required, use secure uploads or client portals for documents, update privacy notices to include audit-related processing, and review data retention policies to match audit cycle timelines.

How does SC Audit protect client data during the audit process?
SC Audit follows a privacy-by-design approach with secure file-transfer platforms, a minimal-data principle collecting only what is essential, staff POPIA training and confidentiality undertakings, encryption, and regular system audits.

What are the consequences of a POPIA breach during an audit?
Even a minor breach can trigger regulatory action by the Information Regulator, reputational harm, and potential financial penalties. For auditors specifically, breaches may also result in disciplinary action by IRBA for failing to meet professional conduct standards.

SC Audit is part of the Schoemans Group that includes Schoemans – Chartered Accountants in Cape Town and Acrede – Quality Auditing and Tax Consulting.

Accounting standards evolve to reflect how businesses operate — and 2025 brings two key updates that every South African organisation should note:

• GRAP 104: Financial Instruments, effective 1 April 2025, reshapes how public-sector entities classify, measure, and disclose financial instruments.
• ISA 570 (Revised): Going Concern, refines auditors’ responsibilities when assessing whether an organisation can continue operating for the foreseeable future.

Even if you’re not in the public sector, these changes influence how auditors evaluate risk and what information management must provide.

GRAP 104: Clarity and Consistency in Financial Instruments

• GRAP 104 aligns closer to IFRS 9, demanding clearer classification and measurement. Key shifts:
• Three measurement categories – amortised cost, fair value through profit or loss, and fair value through other comprehensive income.
• Expected Credit Loss (ECL) model replaces incurred-loss, making impairment more forward-looking.

More detailed disclosures on credit risk, liquidity risk, and market risk.

Who it affects: municipalities, government departments, public entities, and NGOs that report under GRAP.
Why it matters: finance teams must review their policies now to ensure assets and liabilities are classified correctly before audits begin.

ISA 570 (Revised): Strengthened Going-Concern Assessments

• ISA 570 requires auditors to challenge management’s going-concern assessment more rigorously.
  Expect:
• Enhanced documentation of management’s cash-flow forecasts and risk analysis.
• Explicit reporting in audit opinions when material uncertainty exists.
• Board accountability for identifying mitigating actions (funding, restructuring, cost control).

For clients: this means early conversations with your auditor are vital — especially if you’ve faced liquidity strain, delayed payments, or funding changes.

What SC Audit Recommends

✅ Review accounting policies for financial instruments by December 2025.
✅ Prepare forward-looking cash-flow models with assumptions and scenarios.
✅ Educate finance staff and audit committees on these changes.
✅ Use a pre-audit consultation to test compliance before year-end.

Want a smooth transition to GRAP 104 or need help reviewing your going-concern processes? Contact SC Audit to book a technical update session with our partners.

Frequently Asked Questions

What is GRAP 104 and who does it affect?
GRAP 104: Financial Instruments is a new accounting standard effective 1 April 2025 that reshapes how public-sector entities classify, measure, and disclose financial instruments. It affects municipalities, government departments, public entities, and NGOs that report under GRAP.

What are the key changes under GRAP 104?
The standard introduces three measurement categories — amortised cost, fair value through profit or loss, and fair value through other comprehensive income. It replaces the incurred-loss model with an Expected Credit Loss (ECL) model and requires more detailed disclosures on credit, liquidity, and market risk.

How does the revised ISA 570 change going-concern assessments?
ISA 570 (Revised) requires auditors to challenge management’s going-concern assessment more rigorously. Expect enhanced documentation of cash-flow forecasts and risk analysis, explicit reporting when material uncertainty exists, and stronger board accountability for identifying mitigating actions.

What should private sector companies know about these changes?
Even if you are not in the public sector, the enhanced scrutiny in going-concern assessments under ISA 570 affects all entities. Auditors will ask more probing questions about cash-flow forecasts, and management should prepare detailed forward-looking models with clear assumptions.

How can organisations prepare for these 2025 accounting standard changes?
Review accounting policies for financial instruments, prepare forward-looking cash-flow models with assumptions and scenarios, educate finance staff and audit committees on the changes, and schedule a pre-audit consultation to test compliance before year-end reporting begins.

SC Audit is part of the Schoemans Group that includes Schoemans – Chartered Accountants in Cape Town and Acrede – Quality Auditing and Tax Consulting.

Starting for reporting periods ending 15 December 2024, South African auditors of Public Interest Entities (PIEs) must follow the new Enhanced Auditor Reporting (EAR) Rule. If your company is classified as a PIE — or if you’re a board member or audit committee member — this change directly affects the audit report attached to your annual financial statements.

What Is the EAR Rule?

• The EAR Rule requires auditors to include:
• Key Audit Matters (KAMs): Areas of significant risk and how they were addressed.
• Transparency on responsibilities: Clearer explanations of auditor and management roles.
• Additional disclosures: Why certain judgments were material, and how audit evidence was assessed.

Who Is Affected by the EAR Rule?

• Listed companies.
• Entities with a significant number of stakeholders (banks, insurers, retirement funds).
• Certain large nonprofits and public-sector entities.
• Even SMEs that grow into PIE status should prepare — transparency expectations are rising across the board.

Why the EAR Rule Matters to Businesses

• Investors & funders will see more detail: They’ll know exactly what issues auditors flagged.
• Audit committees must be proactive: Boards can’t leave risk management to year-end; they’ll need to engage auditors throughout.
• Public accountability rises: A “clean” audit now also shows that significant risks were managed properly.

How to Prepare for EAR

• Engage your auditors early: Discuss potential KAMs and how management will address them.
• Strengthen documentation: Board minutes, policies, and management estimates must be well-supported.
• Educate stakeholders: Ensure your board and finance teams understand what EAR entails.

SC Audit’s Approach

We’re already guiding clients through EAR implementation, providing workshops and pre-audit assessments so finance teams aren’t surprised by new disclosure requirements.

Not sure if your entity qualifies as a PIE, or how EAR will change your audit report? Contact SC Audit to schedule an EAR readiness session with our partners.

Frequently Asked Questions

What is the Enhanced Auditor Reporting (EAR) Rule?
The EAR Rule requires auditors of Public Interest Entities (PIEs) to include Key Audit Matters (KAMs), clearer explanations of auditor and management responsibilities, and additional disclosures about why certain judgments were material. It applies to reporting periods ending on or after 15 December 2024.

Which entities are affected by the EAR Rule?
PIEs including listed companies, entities with significant stakeholder numbers such as banks, insurers and retirement funds, certain large nonprofits, and public-sector entities. SMEs that grow into PIE status should prepare early as transparency expectations are rising across the board.

How does the EAR Rule affect audit committees and boards?
Audit committees must be more proactive throughout the year rather than leaving risk management to year-end. Boards will see more detail in audit reports about what issues auditors flagged, requiring deeper engagement with auditors on potential KAMs during the planning phase.

What are Key Audit Matters (KAMs) in the EAR context?
KAMs are the areas of significant risk in an audit that required the most auditor attention. Under EAR, auditors must explain what made each matter significant and how it was addressed during the audit, giving stakeholders a clearer picture of the entity’s key risk areas.

How can companies prepare for EAR implementation?
Engage auditors early to discuss potential KAMs, strengthen documentation including board minutes and management estimates, educate stakeholders about what EAR entails, and consider a pre-audit EAR readiness assessment to avoid surprises in the audit report.

SC Audit is part of the Schoemans Group that includes Schoemans – Chartered Accountants in Cape Town and Acrede – Quality Auditing and Tax Consulting.

Audit quality isn’t just about the team on site — it begins with how an audit firm is managed. That’s the idea behind International Standards on Quality Management (ISQM 1 & 2), which South Africa adopted through the IRBA. From December 2022, every registered firm must maintain a comprehensive system of quality management. Here’s what that means for businesses choosing an auditor.

What Is ISQM?

• A framework requiring audit practices to identify and assess quality risks across leadership, ethics, client acceptance, resources, and monitoring.
• Firms must design controls, evaluate them regularly, and document results.
• ISQM 2 adds detailed rules for engagement quality reviews (EQRs) on higher-risk audits

Why It Benefits Clients

When your auditor runs on ISQM principles, you gain:

• Consistency: policies make sure every file is handled to the same high bar.
• Better staffing: firms must assign suitably skilled, independent staff.
• Early warning: internal monitoring spots issues before they affect your report.
• Confidence for boards and funders: quality oversight reduces the chance of surprises.

Questions to Ask Your Auditor

• How has your firm embedded ISQM into day-to-day work?
• Do you perform annual risk assessments on all clients?
• Who performs engagement quality reviews on my audit?
• What training do your teams undergo to maintain quality?

SC Audit’s Commitment

SC Audit has implemented ISQM across leadership, human resources, technology and monitoring. For you, that means a boutique-sized team with big-firm quality controls — ensuring your financial statements are scrutinised with independence, rigour and efficiency.

Discover how our quality-first approach can make your next audit seamless. Schedule a consultation with our partners today.

Frequently Asked Questions

What is ISQM and why does it matter to clients?
ISQM (International Standard on Quality Management) is a new framework requiring audit firms to design, implement, and operate a system of quality management. For clients, this means higher and more consistent audit quality, better risk identification, and greater confidence in the audit opinion.

How is ISQM different from previous quality control standards?
ISQM is more proactive and risk-based than prior standards. Instead of checking compliance retrospectively, firms must now identify quality risks, design responses to mitigate them, and monitor the system continuously. The focus shifts from quality control to quality management.

Does ISQM affect the cost or duration of my audit?
ISQM primarily changes how audit firms manage quality internally. While there may be some initial investment as firms implement new systems, the standard is designed to improve efficiency over time by reducing errors and rework. Clients should expect consistent quality, not necessarily higher fees.

How does SC Audit ensure compliance with ISQM standards?
SC Audit has implemented a comprehensive quality management system aligned with ISQM requirements, including regular risk assessments, engagement quality reviews, independence checks, and ongoing staff training. These processes are embedded in every engagement from planning to sign-off.

What should clients look for in an audit firm’s quality management?
Clients should ask about the firm’s quality control policies, how they handle independence and conflicts, their approach to engagement reviews, and their track record with IRBA inspections. A firm that invests in quality management demonstrates commitment to reliable, professional audits.

SC Audit is part of the Schoemans Group that includes Schoemans – Chartered Accountants in Cape Town and Acrede – Quality Auditing and Tax Consulting.

SARS has officially released the 2025 Filing Season dates – make sure these are in your diary to avoid last-minute stress or penalties:

• 21 July – 20 October 2025 -> Non-provisional taxpayers (manual filing)
• 21 July 2025 – 19 January 2026 -> Provisional taxpayers
• Trusts -> Filing also closes 19 January 2026

A few quick tips:

• If you’re auto-assessed and everything looks correct, no action is needed.
• If you need to make changes or prefer manual submission, file before the deadlines.
• Double-check that your eFiling profile is updated (especially banking details and contact info).

The earlier you file, the less stressful tax season will be. 

We’re here to guide you through the process, answer your questions, and help ensure that you remain fully compliant. 

This of us as a partner in making the tax season simple and stress-free.

Frequently Asked Questions

When does SARS Filing Season 2025 run?
For non-provisional taxpayers filing manually, the filing season runs from 21 July to 20 October 2025. Provisional taxpayers and trusts have until 19 January 2026 to submit their returns.

What should I do if I receive an auto-assessment from SARS?
If everything in your auto-assessment is correct and matches your records, no action is needed. If you need to make changes or prefer to submit manually, you can still file a return before the relevant deadline for your taxpayer type.

How can I prepare for filing season to avoid delays?
Update your eFiling profile with current banking details and contact information, gather all necessary documents including IRP5s and medical aid certificates, and start early to avoid last-minute stress. Ensure your tax returns align with your financial records.

What happens if I miss the filing deadline?
Missing the deadline may result in penalties and interest charges from SARS. Non-compliance can also trigger a SARS audit or verification. If you anticipate missing the deadline, contact your tax practitioner or SARS directly to discuss options.

How can SC Audit help with my tax filing?
SC Audit and the broader Schoemans Group can guide you through the filing process, answer your questions, review your return before submission, and help ensure full compliance. Their team serves as a partner in making tax season simple and stress-free.

SARS has warned that it will intensify and deepen its existing administrative efforts to drive taxpayer compliance, deploying more data science and AI, and imposing significant legal and administrative costs on non-compliant taxpayers.

This means that in 2025, maintaining full tax compliance will be more crucial than ever. Your best shot at ensuring all the compliance requirement boxes are ticked continuously and efficiently is to rely on our friendly and professional expertise.

“Being tax compliant and ‘paying your fair share’ is not just good for you, but also contributes to the positive growth of our country’s economy which in turn benefits all South Africans.” (SARS)

Being tax-compliant is a legal requirement for all South Africans.

SARS says it will be unrelenting in driving voluntary compliance in pursuing the 2024/25 tax revenue target of R1,840.8 billion.

To expand the tax base, detect dishonest taxpayers, deal with tax avoidance, expand debt collection, and improve service levels, SARS will:

• Deploy more data science and artificial intelligence (AI)
• Broaden the tax base via third-party data sources (banks, medical schemes, fund administrators etc.
• Use predictive modelling to ensure all taxpayers and traders are registered, filing returns and paying dues
• Build detection capability using machine learning models and AI
• Enforce Customs and Excise trade laws against the illicit economy
• Focus on dispute prevention and resolution.

Importantly, SARS is ready to act against those who willfully and defiantly ignore their legal obligations by misrepresenting their true economic status. SARS will impose significant legal and administrative costs on taxpayers and traders who deliberately fail to meet their obligations.

What does tax compliance look like?

Your company needs to:

• Be registered with SARS for all the tax types applicable to your company
• Have either merged or declared all registered tax reference numbers on eFiling
• Timeously submit all tax returns and other documentation requested
• Keep all registered particulars updated
• Pay all tax debt on time, or timeously secure a payment arrangement or suspension of payment
• Deregister the business if it is liquidated or closed.

Remember that your tax compliance status is not static: it changes according to your continued compliance with tax requirements month after month. Also remember that SARS can impose both monetary and criminal sanctions to enforce compliance. This is a significant business risk, because the burden of proof, should a taxpayer disagree with a decision taken by SARS, lies with the taxpayer. In the event that the taxpayer fails to argue their case successfully, they may find themselves in a position where penalties are suffered even if the error was unintentional or administrative in nature.

Benefit from the advantages of tax compliance

When you comply with your tax obligations, you give your business some compelling advantages.

• Eliminate the costs of non-compliance, like penalties, interest, and additional accounting and admin fees.
• Avoid the risk of criminal offences, which may result in a fine, imprisonment or both. Common offences include not registering for a tax type, or simply not submitting tax returns.
• Proof of tax compliance is considered an indicator of good company management and legal good standing.
• Good standing tax clearance certificates are often required for tender applications, bidding processes or prequalification as a supplier. They can also be needed to receive payment, or for foreign investment allowances.
• Compliance enables companies to gain the confidence of clients, stakeholders and investors; take advantage of business opportunities; and prevent reputational damage.

Help is at hand

Now more than ever before, professional assistance is the best way to consistently meet all the tax compliance requirements across all the relevant tax types over the tax year, and in an always-changing tax landscape.

SARS itself recommends “employing an accountant, tax practitioner, or other tax professional to complete returns, or from whom to obtain advice before completing a return with entries that are not understood or adopting a position with tax implications” to ensure you have taken “reasonable care” when it comes to your tax affairs.

We are well-versed in the requirements and deadlines of the various tax types and we’re also on top of the latest rules and processes. In a nutshell: we have the tax expertise to ensure you remain tax compliant all through 2025.

Frequently Asked Questions

What types of tax compliance help does SC Audit offer?
SC Audit and the Schoemans Group offer guidance on company tax returns, provisional tax, VAT, PAYE, and tax planning. The team helps businesses understand their tax obligations, prepare accurate returns, and stay compliant with SARS requirements throughout the year.

What is provisional tax and who needs to pay it?
Provisional tax is a system where taxpayers pay tax in two installments during the year of assessment rather than a lump sum after year-end. It applies to taxpayers earning income not covered by PAYE, including business owners, freelancers, and companies with taxable income above the threshold.

How can businesses avoid common tax compliance mistakes?
Common mistakes include incorrect VAT classifications, missed filing deadlines, under-declared income, and inadequate record keeping. Working with a tax professional, maintaining organised records, and staying informed about legislative changes helps businesses avoid costly errors.

What tax deadlines should South African businesses track in 2025?
Key deadlines include monthly VAT returns, PAYE submissions, the upcoming filing season for annual returns, and provisional tax payment dates. The specific dates depend on your business structure, turnover, and registration type. SC Audit can provide a personalised deadline calendar.

How can SC Audit help my business stay tax compliant?
SC Audit offers practical tax compliance support including return preparation and review, deadline management, SARS correspondence assistance, and proactive tax planning. The team helps businesses navigate South Africa’s complex tax landscape with confidence and peace of mind.

SC Audit is part of the Schoemans Group that includes Schoemans – Chartered Accountants in Cape Town and Acrede – Quality Auditing and Tax Consulting.