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COntinued
standards
The IRBA has observed a number
of instances where some RAs issue
“EME certificates” in their capacity”
as CAs(SA), a member of SAICA,
but without indicating that they are
also an RA, and without following
the IRBA’s reporting requirements,
including the signing conventions
in the IRBA
Code of Professional
Conduct for Registered Auditors.
RAs engaged in this emerging
undesirable practice are reminded
that they are to apply SASAE 3502
Assurance Engagements on Broad-
Based Black Economic Empowerment
(B-BBEE) Verification Certificates
when issuing EME certificates,
regardless of their membership with
professional bodies.
The dti issued a General Notice
No. 226 of 2014 in Government
Gazette No. 37453 published
on 18 March 2014 extending the
transitional period of the Codes of
2013 by a further six months, until
30 April 2015.
Broad-Based Black Economic
Empowerment Amendment Act,
2013 (B-BBEE Amendment Act)
On 27 January 2014, the President
assented to the B-BBEE Amendment
Act. Salient amendments include:
•
Defining a fronting practice and
criminalising misrepresentation of
a B-BBEE status of an enterprise;
•
Providing for a “B-BBEE
Verification Professional
Regulator”, which is to be
appointed by the Minister of
Trade and Industry;
•
Providing for the establishment of
the B-BBEE Commission;
•
Adding a trumping clause in the
B-BBEE Amendment Act;
•
Requiring all spheres of
government, public entities and
organs of state to report on
their compliance with B-BBEE in
their audited annual financial
statements and annual reports
required under the Public Finance
Management Act, 1999 (Act No.
1 of 1999); and
•
Requiring all public companies
listed on the JSE to provide to the
Commission, in such manner as
may be prescribed, a report on
their compliance with B-BBEE.
RAs are encouraged to contact
the Standards Department via
or telephone 087 940 8800 or
Gerhardus Burger on direct line
087 940 8786 for assistance
regarding B-BBEE assurance matters.
The International Audit and
Assurance Standards Board
(IAASB)
International Standard on
Assurance Engagements (ISAE)
3000 (Revised), Assurance
Engagements Other than Audits
or Reviews of Historical Financial
Information
This revised assurance standard
deals with assurance engagements
other than audits or reviews of
historical financial information. In
revising ISAE 3000, the IAASB
also agreed amendments to
the
International Framework for
Assurance Engagements,
as well as
ISAE 3402,
Assurance Reports on
Controls at a Service Organization,
ISAE 3410,
Assurance Engagements
on Greenhouse Gas Statements,
and
ISAE 3420,
Assurance Engagements
to Report on the Compilation of
Pro Forma Financial Information
Included in a Prospectus.
ISAE 3000
(Revised) is effective for assurance
engagements when the assurance
report is dated on or after
15 December 2015.
The CFAS considered ISAE 3000
(Revised) at its meeting in March 2014,
and recommended its adoption to
the Board to prescribe for registered
auditors.
Consultation Paper: IAASB’s
Proposed Strategy for 2015-2019
and Proposed Work Program for
2015-2016
The IAASB is undertaking this
consultation to obtain views on its
future direction, in order to build on
its existing base of standards and
address new topics where needed.
The Consultation Paper includes
questions to obtain stakeholders’
views on whether the IAASB’s
strategic objectives are appropriate
for 2015–2019, the approach
taken to the development of the
Work Program for 2015–2016, in
particular the IAASB’s decision to
focus on fewer key projects, and the
appropriateness of the topics chosen
as the focus for the Work Program for
2015–2016, in light of the proposed
strategic objectives. The Consultation
Paper is available on the IAASB’s
website.
Comments were due by 4 April 2014.
The CFAS will also consider the
IAASB Proposed Strategy and Work
Program in preparing its consultation
paper on the
CFAS Proposed
Strategy 2015—2019 and Work
Programme for 2015—2016.
Small and Medium Practices
The International Federation
of Accountants (IFAC) Small
and Medium Practices (SMP)
Committee
The SMP Committee of IFAC
represents the interests of professional
accountants who work in SMPs.
The committee develops guidance
and tools, and works to ensure the
needs of the SMP and small- and
medium-sized entity (SME) sectors
are considered by standard setters,
regulators, and policy makers.
The committee also speaks out on
behalf of SMPs to raise awareness
of their role and value, especially
in supporting SMEs, and the
importance of the small business
sector overall.