107672 IRBA NEWSLETTER

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STANDARDS cont.
2. Updates in terms of relevant revisions of the ISAs, ISAEs and
the Code.
3. Added paragraphs relating to the confidentiality of client
information.
4. Clarification that this Revised Guide is also applicable to joint
engagements (contractual agreement).
Effective date
This Revised Guide is effective from the date of issue. It is available
in both Word and PDF formats and may be downloaded from the
Exposure Draft: Proposed Revised Guide for Registered
Auditors: Assurance Engagements on the Annual
Financial Statements and Annual Statutory Returns of a
Medical Scheme
The CFAS approved the issue of the Proposed Revised Guide
for Registered Auditors: Assurance Engagements on the Annual
Financial Statements and Annual Statutory Returns of a Medical
Scheme (this proposed Guide) in May 2018 for exposure for public
comment by 10 August 2018.
This proposed Guide provides guidance to a registered auditor
on conducting an assurance engagement on the annual financial
statements and annual statutory returns of a medical scheme.
This guidance focuses on understanding the nature and
characteristics of a medical scheme, as well as the nature and
extent of work on the engagement.
Revisions made to this proposed Guide
This proposed Guide includes the following:
• Conforming amendments arising from the Constitutional Court
ruling rendered on 6 June 2017, in relation to the correct
accounting treatment of members’ personal savings accounts
(PMSA monies). This ruling applies prospectively.
• Conforming amendments arising from legislation changes that
result in accredited managed healthcare services now being
included as claims.
• Including a reference to the Protection of Funds Act in the ISAE
3000 (Revised) illustrative report, as well as a reference to the
Prescription Act 68 of 1969.
• Conforming amendments, where considered necessary,
arising from the revision of the following ISAs:
o ISA 260 (Revised) , Communication with Those
Charged with Governance;
o ISA 700 (Revised), Forming an Opinion and Reporting
on Financial Statements;
o ISA 705 (Revised) , Modifications to the Opinion in the
Independent Auditor’s Report;
o ISA 706 (Revised), Emphasis of Matter Paragraphs
and Other Matter Paragraphs in the Independent Au-
ditor’s Report;
o ISA 720 (Revised) , The Auditor’s Responsibilities Relat-
ing to Other Information;
o ISA 800 (Revised), Special Considerations – Audits
of Financial Statements Prepared in Accordance with
Special Purpose Frameworks; and
o ISA 810 (Revised), Engagements to Report on Sum-
mary Financial Statements.
• Inclusion of requirements arising from the new ISA 701,
Communicating Key Audit Matters in the Independent Auditor’s
Report.
The abovementioned ISAs are effective for audits of financial
statements for periods ending on or after 15 December 2016.
• Conforming amendments, where considered necessary,
arising from the revision of the following ISAE:
o ISAE 3000 (Revised), Assurance Engagements Other
than Audits or Reviews of Historical Financial Informa-
tion.
The abovementioned ISAE is effective for audits of financial
statements for periods ending on or after 15 December 2015.
Proposed effective date
Depending on the comments received, it is anticipated that the final
Guide will be approved by the CFAS in November 2018 and issued
in December 2018, with such approval and issue being noted at the
subsequent meeting of the IRBA Board.
It is expected that this proposed Guide will be effective for
engagements on accounting periods ending on or after 31
December 2018. Early adoption is encouraged. As with early
adoption of the new and revised ISAs permitted by the IAASB, early
adoption of this proposed Guide will also be permitted where the
auditor has early adopted the underlying suite of new and revised
IAASB standards.
A copy of the exposure draft is available on the exposure drafts
page on the
CFAS Sustainability Standing Committee (SSC)
Illustrative engagement letters, assurance reports and
related guidance notes – sustainability engagements
The CFAS approved the issue of the following for use by practitioners
on sustainability engagements in South Africa:
• A revised limited assurance illustrative engagement letter and a
revised limited assurance illustrative assurance report, with the
related guidance notes;
• A reasonable assurance illustrative engagement letter and a
reasonable assurance illustrative assurance report, with the
related guidance notes; and
• A combined reasonable and limited assurance illustrative
engagement letter as well as a combined reasonable and
limited assurance illustrative assurance report, with the related
guidance notes.
The illustrative engagement letters, illustrative assurance reports
and related guidance notes will continue to promote consistency
in the layout and wording of the engagement letters and assurance
reports when providing assurance services on selected key
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