11
COntinued
standards
SMPs may find the publications
available on the IFAC website useful
in running their practices, especially
in the audit of small and medium
enterprises (SMEs).
These publications have not been
adopted by the IRBA as they
were not subject to the IAASB’s
due process for development of
International Standards, or the
CFAS due process for adoption
of International Standards and
guidance.
However, SMPs may refer to
the guidance issued by the SMP
Committee at their discretion, and
may find the guidance useful, but
are advised that registered auditors
are still required to apply all
auditing pronouncements adopted,
developed, issued and prescribed
by the IRBA, including the IAASB
International Standards.
The SMP Committee issued a
Guide for Review Engagements
in
December 2013. The Guide may be
found on the IFAC website. (Please
note caveat above).
COMMITTEE FOR AUDITOR ETHICS (CFAE)
IRBA Board approved the
amendments to the Code
of Professional Conduct
The IRBA Board approved the
adoption of the amendments made
to the IESBA Code during 2013
as amendments to the IRBA Code
(Revised 2014) on 18 February 2014.
The IRBA Code (Revised 2014),
was issued on 17 March 2014 and
may be downloaded from the IRBA
website:
www.irba.co.za.
Amendments to the IRBA Code
The amendments result in the
following changes in substance:
Breach of a Requirement of the Code
This revision deals more
comprehensively with a
registered
auditor’s
actions when encountering
a breach of a requirement of the
Code. The changes in particular
establish a robust framework
for addressing a breach of an
independence requirement in
the Code. This change affects
paragraphs 100.10, 220.33-37,
290.117, 290.133, 290.159,
291.33-37, 291.112 and 291.127.
Conflicts of Interests
This revision to the Code establishes
more specific requirements and
provides more comprehensive
guidance to support
registered
auditors
in identifying, evaluating,
and managing conflicts of interest.
The changes clarify the meaning of
a conflict of interest under the Code.
This change affects paragraphs
100.17-100.24, 200.1-200.14 as
well as the definition of Professional
Activity and Professional Services.
Definition of “Engagement Team”
The change to the definition of
“
engagement team
” is to clarify the
relationship between internal auditors
providing direct assistance on an
external audit and the meaning of an
engagement team under the Code.
The IESBA issued the revised
definition in conjunction with the
IAASB’s issue of its ISA 610 (Revised
2013),
Using the Work of Internal
Auditors.
ISA 610 (Revised 2013)
includes requirements and guidance
addressing the external auditor’s
responsibilities if using internal
auditors to provide direct
assistance under the
direction, supervision, and review of
the external auditor for purposes of
the audit, where such assistance is
not prohibited by law or regulation.
It is proposed that the revised
definition of “
engagement team
” will
become effective for audits of financial
statements for periods ending on or
after the 15 December 2014. Early
adoption is permitted.
Definition of “Those Charged with
Governance”
The change more closely aligns
the definition of “
those charged
with governance
” in the
Code with that in ISA 260,
Communication with
Those Charged with
Governance
, thereby
eliminating any
potential
confusion.
The CFAE
does
not
ethics