What is the CPA’s regulation on auditors?
What is the CPA’s regulation on auditors?
New auditing requirement under the CPA states that the promoter must ensure that an independent accountant, registered auditor, attorney or advocate oversees and certifies the conducting of the competition and must report this through the promoter’s internal audit reporting or other appropriate validation or verification procedures.
Promotional competitions are now dealt with under section 36 of the Consumer Protection Act. A promotional competition will mean:
“any competition, game, scheme, arrangement, system, plan or device for distributing prizes by lot or chance if-
(i) it is conducted in the ordinary course of business for the purpose of promoting a producer, distributor, supplier, or association of any such persons, or the sale of any goods or services; and
(ii) any prize offered exceeds the threshold prescribed in terms of subsection (11), irrespective of whether a participant is required to demonstrate any skill or ability before being awarded a prize.“
An auditor is especially vital for the competition or promotion draw and cannot be excluded from the competition management. Prize Voucher Agency makes use of such auditors and can assist you – simply contact us on This email address is being protected from spambots. You need JavaScript enabled to view it. for more info.
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