IRBA Newsletter 26

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STANDARDS c o n t .
CFASB-BBEEAdvisory Committee
Validity of B-BBEECertificates
Ras are reminded that the IRBA has provided a letter setting
out the authority for B-BBEE Approved Registered Auditors
(BARs) to issue valid B-BBEE Verification Certificates, and for
all RAs to issue EME Certificates, contained in Statement 005,
Broad Based Black Economic Empowerment (B-BBEE)
Verification (Government Gazette No. 34612 on
23 September 2011). The IRBA letter may be downloaded
from our IRBAwebsite and provided by BARs
to their clients to explain the validity of such certificates issued
in terms of the B-BBEECodes of Good Practice issued in 2007
(the 2007 B-BBEE Codes) and Sector Codes, which were
subsequently issued.
RAs are encouraged to contact the Standards Department via
email for assistance regarding
B-BBEE assurancematters.
Frequently Asked Questions (FAQs) on Assurance
Engagements on Broad-Based Black Economic
Empowerment (B-BBEE) VerificationCertificates
BARs are reminded of the Frequently Asked Questions
(FAQs) with responses, issued by the Committee for Auditor
Ethics (CFAE). These FAQs will assist BARs with
implementation of the South African Standard on Assurance
Engagements (SASAE) 3502, Assurance Engagements on
Broad-Based Black Economic Empowerment (B-BBEE)
Verification Certificates and the IRBA Code (Revised) when
dealing with ethical issues encountered by practitioners
undertaking B-BBEE assurance and advisory engagements.
The FAQs may be accessed at the B-BBEE webpage on the
IRBAwebsite: .
CFAS Sustainability StandingCommittee (SSC)
The CFAS issued an illustrative engagement letter, the related
illustrative assurance report and guidance thereon, for use by
RAs in SouthAfrica on sustainability engagements, in order to
promote consistency in the layout and wording of the
engagement letter and the assurance report for a
sustainability assurance engagement. The illustrative
engagement letter for the assurance engagement, illustrative
assurance report and the guidance may be downloaded from
the IRBAwebsite at:
The International Audit and Assurance Standards Board
(IAASB)
International Standard on Assurance Engagements
(ISAE) 3000 Revised, Assurance Engagements Other
thanAudits or Reviews of Historical Financial Information
(ISAE 3000)
The IRBA Board approved the adoption of ISAE 3000. This
Standard was issued by the International Audit andAssurance
Standards Board (the IAASB), in December 2013. ISAE 3000
is effective for assurance engagements when the assurance
report is dated on or after 15 December 2015 – earlier
implementation is permissible.
IAASB re-exposure of the proposed ISA 720 (Revised),
The Auditor’s Responsibilities Relating to Other
Information and Proposed Consequential and
Conforming Amendments to Other ISAs (proposed ISA
720 (Revised))
Significant concerns were raised about the way in which the
specific proposals of proposed ISA 720 (Revised), issued in
November 2012, were formulated. Due to the significance of
the comments received, and the changes made to the
proposed ISA 720 (Revised) based on those comments, the
IAASB re-exposed the proposed ISA 720 (Revised) in April
2014.
Respondents were required to submit their comments to the
IRBA by 4 July 2014, i.e. two weeks before the IAASB
comment date deadline of 18 July 2014, for consideration of
the CFASTask Group preparing the IRBAresponse.
The IAASB proposes enhancements to the International
Standards on Auditing focused on financial statement
disclosures
The IAASB released for public comment proposed changes to
the International Standards on Auditing (ISAs) to clarify
expectations of RAs when auditing financial statement
disclosures, inMay 2014.
The IAASB believes that the proposed changes, mainly to
application material in the ISAs in order to further support the
proper application of the standards' requirements, as set out in
the exposure draft, are an appropriate response to the
concerns raised about the need to clarify the expectations of
auditors when auditing financial statement disclosures, as well
as to the need for additional guidance to assist auditors in
addressing the practical challenges arising from the evolving
nature of disclosures.
5 Issue 26 April - June 2014