IRBA NEWS LETTER

4 / 22

Issue 35 | July-September 2016 4
STANDARDS
COUNTDOWN TO THE NEW AND REVISED AUDITOR REPORTING
STANDARDS – THREE MONTHS TO GO
Auditors are reminded that the new and revised Auditor Reporting
Standards are effective for audits of financial statements for
periods ending on or after 15 December 2016. A comprehensive
list of resources to assist auditors with the implementation
is available on the
ISAE 3000 (REVISED), ASSURANCE ENGAGEMENTS OTHER THAN
AUDITS OR REVIEWS OF HISTORICAL FINANCIAL INFORMATION
Auditors are also reminded that ISAE 3000 (Revised) is effective
for assurance reports dated on or after 15 December
2015. ISAE 3000 (Revised) is available on the
THE FOLLOWING TOPICS ARE DISCUSSED IN THIS
ISSUE :
• IAASB’s discussion paper on assurance engagements on
emerging forms of external reporting (EER).
• Key Audit Matters: Feedback and information.
• IRBA Staff Audit Practice Alert: The Audit Implications of the
Expected Credit Loss Model for the Auditors of Banks (IFRS 9).
• Reminder regarding the proposed Solvency Guide.
• Prescribed auditor reports for medical schemes.
• Illustrative report as required by the SARB Exchange Control
Circular 6/2010 relating to the Macro-Prudential Foreign
Exposure Limit Return.
• Revised illustrative reports used by registered auditors when
required to report in terms of the Financial Markets Act, No. 19
of 2012 and JSE Directive DG 1.7 (reports on stockbrokers).
• Illustrative SARB Banks Act regulatory auditor’s reports.
• Sustainability Standing Committee project on the assurance
concepts of subject matter and criteria.
• IAASB’s work plan survey and projects update.
• Tools and resources for small and medium-sized practices.
• B-BBEE verification assurance communiques.
• Proposed amendments to the IRBA Code – Responding to
Non-Compliance with Laws and Regulations (NOCLAR)
• IFAC publication on fee pressure.
IAASB Releases Working Group Paper on Supporting
Credibility and Trust in Emerging Forms of External
Reporting: Ten Key Challenges for Assurance
Engagements
The International Auditing and Assurance Standards Board’s
(IAASB) Integrated Reporting Working Group (IRWG) has released
a Discussion Paper, Supporting Credibility and Trust in Emerging
Forms of External Reporting: Ten Key Challenges for Assurance
Engagements. The IRWG, which released the Discussion Paper
on 18 August 2016, is dedicated to exploring emerging forms of
external reporting (referred to as EER).
The Discussion Paper is of particular relevance in the South African
environment due to the integrated reporting requirements for listed
companies, as per the JSE Listings Requirements and the King
Code of Governance Principles (King III).
The Discussion Paper explores the following:
• Factors that can enhance credibility and trust, internally and
externally, in relation to emerging forms of external reports;
• Types of professional services covered by the IAASB’s
international standards most relevant to these reports, in
particular assurance engagements;
• Key challenges in relation to assurance engagements;
• The type of guidance that might be helpful to support the
quality of these assurance engagements; and
• Identifies 10 Key Challenges in relation to assurance
engagements that the IRWG would like to explore further.
The IRWG is seeking input from investors, preparers, those in
governance roles, standard setters, practitioners, internal auditors,
regulators, academics and other stakeholders in the external
reporting supply chain. The input will assist the IAASB in responding
effectively to these developments in the public interest, including
whether new or revised international standards or guidance may
be necessary.
The IRWG has developed material to supplement the Discussion
Paper, including an At-A-Glance document and FAQs. This material,
more information and updates on the project are available on the
The IAASB has requested that comments to the Discussion Paper
be submitted by 15 December 2016 online.
Consultation Forums on Assurance on Integrated
Reporting
The IRBA, in collaboration with the South African Institute of
Chartered Accountants (SAICA), held an outreach forum to obtain
feedback on the Discussion Paper from stakeholders.
The Discussion Paper asked nine questions and identified 10 key
challenges in relation to assurance engagements that the IAASB
would like to explore further. The IRBA and SAICA obtained the views
of a broad group of stakeholders, including auditors, accountants,
directors, preparers, academics and investors.
Key Audit Matters
Feedback on the IRBA Pro Forma Inspections of the
New Auditor’s Reports
The IRBA had the opportunity to collaborate with firms to conduct
pro forma inspections of the new auditor’s report. The pro forma
inspections focused on the form and content of the new auditor’s
report prepared in terms of the new and revised Auditor Reporting
Standards. These changes are significant. They will affect all audit
clients and will involve firm-wide preparations.
The new and revised Auditor Reporting Standards are effective
for audits of financial statements for periods ending on or after 15
December 2016, which is just more than a month away.