IRBA Newsletter 25

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COntinued
ethics
expect that any changes will be
necessary to audit firms’ systems and
methodologies or common practice.
The changes clarify that a subgroup
of those charged with governance of
an entity, such as an audit committee,
may assist the governing body in
meeting its responsibilities. In those
cases, if a registered auditor or
audit firm communicates with such
a subgroup, the Code requires
the registered auditor or firm to
determine whether communication
with all of those charged with
governance is also necessary so
that they are adequately informed.
These changes affects the definition
of “those changed with governance”,
paragraph 100.25 and 290.28.
Definition of Professional Activity
and Professional Services
The reclassification of the definition
of “professional services” as
“professional activity” as:
“An activity requiring accountancy
or related skills undertaken by a
registered auditor, including
accounting, auditing, review,
other assurance and related
services, taxation, management
consulting, and financial
management.
Consequential change to the
definition of “professional services ”
as:
“Professional activities performed
for clients.”
Additional amendments to the
IRBA Code
Unlike the IESBA Code amendments
that are all included at the back of
the IESBA Handbook of the Code of
Ethics for Professional Accountants
2013 Edition, the IRBA Secretariat
has incorporated all the proposed
amendments into the IRBA Code,
issued in June 2010, as the IRBA
Code (Revised 2014), with all
amendments reflected as grey
shading in the revised IRBA Code.
This has been done to facilitate
practical implementation of the IRBA
Code (Revised 2014) in its impact
on the inspections, investigations and
disciplinary functions of the IRBA.
The Changes of Substance from
the 2010 IRBA Code have been
included at the end of the revised
Code, as well as a table summarising
the paragraphs amended.
It is not anticipated that the
amendments create additional
requirements for auditors that require
an extended period of time for
implementation.
The amendments to the IESBA Code
(2013) have been issued with the
following effective dates, all with
early adoption permitted:
• Breaches of the requirements of
the Code (effective on or after
1 April 2014);
• Conflicts of interest (effective on
or after 1 July 2014);
• Change to the definition of
“engagement team” (effective for
audits of financial statements for
periods ending on or after the
15 December 2014);
• Change to the definition of “those
charged with governance”
(effective on or after 1 July 2014);
and
• Reclassification of the definition
of “professional services” as
“professional activity”, and
consequential changes to the
definition of “professional
services” (effective on or after
1 July 2014).
Effective date in South Africa
In order to facilitate implementation
of the IRBA Code (Revised 2014),
regard being had to its impact on
the inspections, investigations and
disciplinary functions of the IRBA,
and as early adoption is permitted
by both the IESBA and the IRBA, the
Board approved the incorporation of
all the amendments into the revised
IRBA Code in February 2014, with
an effective date of 1 April 2014.
B-BBEE FAQs approved for issue
The CFAE approved a number of
Frequently Asked Questions
(FAQs) with responses at its
meeting in March 2014 based on
queries most commonly received
by the Standards Department
and the B-BBEE Queries mailbox
to
assist B-BBEE approved registered
auditors (BARs) with implementation
of the SASAE 3502 and the IRBA
Code (Revised) when dealing with
ethical issues frequently encountered
by practitioners undertaking
B-BBEE assurance and advisory
engagements. The FAQs may be
accessed at the B-BBEE webpage on
the IRBA website:
Letter of Authority regarding
B-BBEE verification certificates
The CFAE also approved a
Communique and Letter of
Authority regarding B-BBEE
Verification Certificates that
BARs may provide for their clients,
indicating their authority for issuing
B-BBEE verification certificates, and
EME certificates issued by both BARs
and RAs, in terms of the existing
2007 Codes of Good Practice. The
letter also deals with the prohibition
on the use of the IRBA logo on
B-BBEE verification certificates issued.
These have been communicated and
may be downloaded from the IRBA
website.