ACCOUNTANTS REPORTS: WHAT YOU NEED TO KNOW FOR PROPERTY SERVICE PROVIDERS

 

The Property Services Regulatory Authority (PRSA) has recently issued guidance on the form and content of accountants reports to be included with applications for Property Service Providers (PSPS) Licences. The PRSA is responsible for the control and regulation of all Property Service Providers, including auctioneers/estate agents, letting agents and management agents.  All such providers must apply for a licence from the PRSA.

As part of the licence application, an Accountants Report must be completed. The accountant who prepares the report must be a member of an accounting body regulated by the Irish Auditing and Accounting Supervisory Authority (IAASA), for example Chartered Accountants Ireland. The account must also be independent of (i.e. not an employee) of the applicant. The purpose of the accountants report is to express an opinion as to whether the applicant is intending to have in place appropriate financial systems and controls for the protection of client monies, that a separate client account has been opened and that appropriate information and explanations have been provided by the PSP to the accountant.

An accountants report is required both for an initial licence application and for each renewal application. For a renewal application, the accountant is required to report on the accuracy of the PSPs client account records, and must perform testing on a sample of transactions, including an examination of bank lodgements, bank statements and the client account balancing statement. Furthermore, for both initial applications and renewals, if client monies are paid into a “relevant account” (i.e. not a client account) a separate accountants report will be required in respect of the relevant account. Again, for renewal applications, the accountant is required to examine and test transactions prior to issuing the report.

As Chartered Accountants, OBK Accountants are in a position to provide this service. Contact us at info@obk.ie or on 01-4853156.

 

Date Added: 29 May 2014

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