IRBA NEWS LETTER

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Issue 35 | July-September 2016 7
Illustrative Report for External Auditors as Required
by the South African Reserve Bank Exchange Control
Circular 6/2010 Relating to the Macro-Prudential
Foreign Exposure Limit Return
The CFAS has approved the issue of the Illustrative South African
Reserve Bank (SARB) Assurance Reports on the Macro-Prudential
Foreign Exposure Limit Return (illustrative reports) for use by
registered auditors of authorised dealers with year-ends on or after
31 December 2016.
In terms of Section B.2(I)(xiii) of the Currency and Exchanges
Manual for Authorised Dealers, the external auditor of an authorised
dealer is required to report to the SARB on the last submitted
Macro-Prudential Foreign Exposure Limit Return at year-end.
The assurance reports must be submitted to the SARB Financial
Surveillance Department within a maximum period of six months
after the financial year-end.
Illustrative Assurance Reports A and B
Using the IAASB standards for the engagement, Illustrative Reports
A and B have been developed to report on the Currency and
Exchanges Manual for Authorised Dealers as follows:
• Part A: ISRE 2410; and
• Part B: ISAE 3000 (Revised).
The illustrative reports are available in both PDF and Word formats
and may be downloaded from the
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
Regarding Johannesburg Stock Exchange (JSE) stockbrokers,
the CFAS approved the issue of the Revised Illustrative JSE
Stockbrokers’ Auditor Reports for use by registered auditors when
reporting in terms of the Financial Markets Act, No. 19 of 2012, and
the JSE Directive DG 1.7 for stockbrokers with year-ends on or after
31 December 2016 as follows:
• Illustrative regulatory reports 2A, 2B, 3; and
• Illustrative regulatory reports 4-5.
In terms of the Financial Markets Act, the JSE Rules and the JSE
Directives, the external auditor of a stockbroker is required to report
to the JSE on various regulatory matters.
In terms of JSE Directive 1.7.1 of the Financial Markets Act, the
revised illustrative reports have been rendered in accordance with
the wording and practices agreed from time to time between the
JSE Market Regulation Department and the IRBA.
Illustrative Regulatory Reports 2A, 2B and 3
Using the IAASB standards for the engagements, illustrative reports
2A, 2B and 3 have been developed to report on the stockbrokers
as follows:
• Part 2A: ISRE 2410;
• Part 2B: ISRS 4400; and
• Part 3: ISRS 4400.
Illustrative Regulatory Reports 4-5
Illustrative reports 4-5, which represent a non-assurance
engagement, fall outside the IAASB standards. The CFAS has
concluded that the provisions of paragraph 20 of the International
Framework for Assurance Engagements (Framework) have been
adhered to when developing illustrative reports 4-5 in that these
reports do not imply compliance with the Framework or with
assurance standards. They also do not inappropriately use the
words “assurance”, “audit” or “review”.
The illustrative reports are available in both PDF and Word formats
and may be downloaded from the
Illustrative South African Reserve Bank (SARB) Banks Act
Regulatory Auditor’s Reports
The CFAS approved the issue of the illustrative SARB Banks Act
regulatory auditor’s reports on the Banks Act Returns (illustrative
reports) for use by registered auditors for banks with year-ends on
or after 31 December 2015 as follows:
• Illustrative regulatory reports A-H; and
• Illustrative regulatory reports I-J.
In terms of Regulations 39, 40 and 46 of the Banks Act (No. 94
of 1990), the external auditor of a bank is required to report to the
SARB on various regulatory matters.
In terms of Regulation 46(6) of the Banks Act, the illustrative reports
have been rendered in accordance with the wording and practices
agreed from time to time between the Registrar of Banks, SAICA
and the IRBA.
Illustrative Regulatory Reports A-H
Using the IAASB standards for the engagement, illustrative reports
A-H have been developed to report on the Banks Act Returns as
follows:
• Part A: ISA 800;
• Part B: ISRE 2410;
• Part C: ISAE 3000 (Revised);
• Part D: ISAE 3000 (Revised);
• Part E: ISAE 3000 (Revised);
• Part F: ISA 800; ISRE 2410 and ISAE 3000 (Revised);
• Part G: ISRS 4400; and
• Part H: ISRS 4400.
Illustrative Regulatory Reports I-J
Illustrative reports I-J,which represent anon-assuranceengagement,
fall outside the IAASB standards. The CFAS has concluded that
the provisions of paragraph 20 of the International Framework for
Assurance Engagements (Framework) have been adhered to when
developing illustrative reports I-J in that these reports do not imply
compliance with the Framework or with assurance standards.
STANDARDS c o n t .