IRBA Newsletter 26

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STANDARDS
NewDirector: Standards
Sandy van Esch, Director: Standards, retired at the end of May
2014, having spent most of her working life contributing and
strengthening the profession through lecturing, auditing and
standard setting. Sandy has been succeeded by Imran
Vanker. Please refer to the General News section for more on
Sandy’s career and farewell.
Sandy’s team would like to thank her on a personal level for
her incredible dedication to the team, and for inculcating a
passion for audit in each of us.
Ciara, Nicki, Yussuf, Saadiya, Anne, Ian and Retsi
Email addresses for queries
A reminder to use the following email addresses:
All Reportable Irregularity related emails to:
All ethics-related queries to:
All B-BEE-related queries to:
All other standards-related queries to:
Committee forAuditing Standards (CFAS)
Frequently Asked Questions on the Guide for Registered
Auditors: Engagements onAttorneys Trust Accounts
The Guide for Registered Auditors: Engagements on
Attorneys Trust Accounts (the Guide) was issued on 28
February 2014. In response to some Frequently Asked
Questions, a communique was issued which provides clarity
on:
?The effective date of theGuide:
The Guide applies to all engagements on attorneys trust
accounts and the related auditor's reports issued
subsequent to 1March 2014.
?The status of the SAICAGuide:
The SAICAGuide has been withdrawn.
?The reason why Registered Auditors (RAs) need to
apply theGuide:
RAs are referred to the Status and Authority of Quality
Control, Auditing, Review, Other Assurance, and Related
Services Pronouncements, wherein it states:
"In terms of section 1 of the Auditing Profession Act, No
26 of 2005 (the Act), a Guide is included in the definition
of "auditing pronouncements" and in terms of the Act, the
auditor must, in the performance of an audit, comply with
those standards, practice statements, guidelines and
circulars developed, adopted, issued or prescribed by the
Regulatory Board".
All RAs undertaking such engagements must apply the
guidance in the Guide to meet the requirements of the
applicable Rules of the Provincial Law Societies and in
order to be able to issue the new format of auditor's report
(Appendices 4 and 5).
?Auditing of the attorneys’ financial statements
(business accounts)
Paragraph 25 of the Guide clarifies this and states:
"There is no requirement in the Act or the Rules for an
attorney's financial statements to be audited. Such
requirement may emanate from another Act, such as the
Companies Act. However, an auditor is required by the
Rules to undertake an engagement on the compliance of
attorneys trust accounts with the Act and the Rules,
whether or not an audit is conducted on the financial
statements”.
?Reportable Irregularities
Where an auditor has reason to believe a reportable
irregularity has occurred or exists, by reason of that
auditor's access to the attorney's business accounts, in
the course of the auditor's engagement on the attorneys
trust accounts, although the auditor is not appointed to
audit the financial statements of the attorney, the
obligation to report to the IRBA still arises. An auditor's
responsibility is clarified in paragraphs 24, 26 and 27 of the
Guide.
?Signing of the Attorney's Annual Statement on Trust
Accounts
It has been asked if all the partners of the attorneys' firm
are required to sign the Attorney's Annual Statement on
Trust Accounts. This is a decision that each attorney's firm
will need to make as it represents an acknowledgment
that each attorney in that firm has complied with the
relevant Provincial Law Societies' Rules. The attorney's
firm may decide to delegate this responsibility to certain
partners or may require all partners to sign.
3 Issue 26 April - June 2014