IRBA NEWSLETTER ISSUE 44

10 / 22

ETHICS cont.
Imran Vanker
Director Standards
Telephone: (087) 940-8838
Fax: (086) 575-6535
E-mail:
In 2018 the CFAS requested that the Circular should be
reconsidered by the CFAE as it is an IRBA Code related matter.
Though the Circular was issued before the formation of the CFAE, it
now falls under its mandate. The CFAE is also best placed to advise
on whether the Circular should be amended, incorporated into the
IRBA Code or withdrawn.
The CFAE considered whether the guidance contained in the
Circular is still relevant and applicable to auditors. It also considered
whether the guidance to be incorporated into Section 321 of the
IRBA Code (Revised November 2018): Second Opinions should
be included as introductory material, requirements or application
material.
Further, the Task Group considered whether the guidance included
in Section 321 of the IRBA Code (Revised November 2018): Second
Opinions should be amended to:
• Align the guidance, where applicable, with South African
amendments made elsewhere in the IRBA Code;
• Further strengthen the guidance by escalating certain
application material to a requirement paragraph; and
• Include additional safeguards mentioned in other sections of
the IRBA Code that might be relevant in addressing a possible
self-interest threat when an auditor is engaged to provide a
second opinion.
Project timetable
Subject to comments received during the comment period, the
CFAE plans to finalise the amendments during May 2019 for
approval by the IRBA Board for issue in June 2019. It is anticipated
that the proposed amendments to Section 321 of the IRBA Code
(Revised November 2018): Second Opinions will be effective on or
after 15 January 2020.
Request for comments
The CFAE welcomes comments on all matters addressed in the
proposed amendments to Section 321 of the IRBA Code (Revised
November 2018): Second Opinions, especially those identified in
the Request for Specific Comments section of the Explanatory
Memorandum.
We invite auditors and other interested parties to submit any
comments regarding the proposed amendments to Section 321 of
the IRBA Code (Revised November 2018): Second Opinions to the
IRBA by 5 February 2019. Comments, in Word format, should be
submitted by e-mail to . All comments will be
considered as a public record.
A copy of the exposure draft is available in PDF format and may be
downloaded from the exposure drafts page on the
International Ethics Standards Board for Accountants
(IESBA)
IESBA projects in progress
• Safeguards and their applicability pertaining to non-assurance
services.
• Fees.
• Professional scepticism.
• Technology.
• E-Code.
• Alignment of Part 4B of the Code and ISAE 3000 (Revised).
More information on these projects is available on the
.
Issue 44 | October-December 2018 10