IRBA newsletter #33

4 / 21

5
STANDARDS c o n t .
The IRBA Board adopts ISA 800 (Revised), Special
Considerations – Audits of Financial Statements
Prepared in Accordance with Special Purpose
Frameworks ; and ISA 805 (Revised), Special
Considerations – Audits of Single Financial Statements
and Specific Elements, Accounts or Items of a Financial
Statement
The IRBA Board has approved the IAASB's ISA 800
(Revised), Special Considerations – Audits of Financial
Statements Prepared in Accordance with Special Purpose
Frameworks and ISA805 (Revised), Special Considerations –
Audits of Single Financial Statements and Specific Elements,
Accounts or Items of a Financial Statement , and related
conforming amendments, for adoption, issue and prescription
by registered auditors in South Africa. These revised
standards are effective for audits of financial statements for
periods ending on or after 15 December 2016.
The nature of the changes in ISA 800 (Revised) and ISA 805
(Revised) is as follows:
?Refinements to the requirements and corresponding
application material, where applicable, to clarify auditor
reporting responsibilities in light of new concepts
established by the new and revised Auditor Reporting
Standards.
?New application material relating to going concern, key
audit matters, other information and naming of the
engagement partner.
?Updated illustrative auditor's reports that:
o Align with the reporting requirements in ISA 700
(Revised) in terms of the layout and content, including
the ordering of elements, use of headings and
terminology; and
o Include more fulsome descriptions of the
circumstances that are assumed for each of the
illustrative auditor's reports and indicate the
applicability of the auditor reporting enhancements.
The revised standards
available on the IRBAwebsite.
Committee forAuditing Standards (CFAS)
Auditors are encouraged to prepare for the
implementation and assess the impact of IFRS 9 on their
audit procedures
Audit implications of IFRS 9: Financial Instruments
SAICA's Banking Project Group has established a
subcommittee, the IFRS 9 Impairment Working Group, to
address industry issues related to the implementation of IFRS
9, Financial Instruments, specifically the impairment
requirements. The IRBA is represented on the working group.
The IRBA, through the IFRS 9 Impairment Working Group, has
determined that South Africa-specific auditing guidance may
be required especially on the impairment requirements
contained in IFRS 9. An IRBA task group will be established in
due course to address this issue.
In addition, on 2 March 2016 the IAASB released a publication
arising from the adoption of Expected Credit Loss (ECL)
models when accounting for loan losses. The publication also
sets out initial thinking on how these challenges may be
addressed under the current ISAs. ECL models will be
required under IFRS 9, which will come into effect from 1
January 2018.
The publication also discusses how the IAASB's new project
540, Auditing Accounting Estimates, Including Fair Value
Accounting Estimates, and Related Disclosures will seek to
further address these and other challenges in respect of
auditing accounting estimates, including those that are in
relation to financial institutions.
Gu i de f o r Reg i s t e r ed Aud i t o r s : Repo r t i ng
Responsibilities of the Reporting Accountant Related to
Property Entities in Terms of the JSE Listings
Requirements
The CFAS approved the issue of the Guide for Registered
Auditors: Reporting Responsibilities of the Reporting
Accountant Related to Property Entities in Terms of the JSE
Issue 33 January - March 2016