IRBA NEWSLETTER ISSUE 44

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Revisions made to this Revised Guide
This Revised Guide addresses 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 effect the treatment of accredited managed healthcare
services.
• 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
Auditor’s Report;
o ISA 720 (Revised), The Auditor’s Responsibilities
Relating 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
Summary Financial Statements.
• Inclusion of requirements arising from the new ISA 701,
Communicating Key Audit Matters in the Independent Auditor’s
Report.
• All the ISAs mentioned above 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 International Standard
on Assurance Engagement (ISAE):
o ISAE 3000 (Revised), Assurance Engagements
Other than Audits or Reviews of Historical Financial
Information. This ISAE is effective for audits of financial
statements for periods ending on or after 15 December
2015.
• Conforming amendments arising from Circular 38 of 2018,
Audit tenure, issued on 3 August 2018 by the Council for
Medical Schemes. Circular 38 of 2018 requires the auditor’s
reports on the annual financial statements to disclose the
number of years that both the audit firm and the engagement
partner have been the auditor of a medical scheme (audit
tenure). This is applicable for audit reports on the annual
financial statements of all medical schemes for periods ending
on or after 31 December 2018.
• IRBA Code of Professional Conduct for Registered Auditors
(Revised November 2018).
Effective date
The Revised Guide is effective for engagements on accounting
periods ending on or after 31 December 2018.
This Revised Guide is available in both Word and PDF formats and
may be downloaded from the
Exposure Draft: Proposed International Standard
on Related Services 4400 (Revised): Agreed-Upon
Procedures Engagements
The IAASB has issued the proposed International Standard on
Related Services (ISRS) 4400 (Revised), Agreed-Upon Procedures
Engagement (ED-ISRS 4400 (Revised)), for public comment.
The demand for agreed-upon procedures (AUP) engagements
continues to grow across jurisdictions. Changes in regulation, such
as the increase in audit exemption thresholds in many jurisdictions,
have also driven increased demand for AUP engagements.
To ensure that the IAASB’s standard on AUP engagements remains
relevant in the current business environment, the IAASB proposes
to enhance key concepts in the standard, including:
• The role of professional judgment in an AUP engagement.
• Disclosures relating to the practitioner’s independence or lack
thereof.
• Guidance on appropriate or inappropriate terminology to
describe procedures and findings in AUP reports.
• The use of a practitioner’s expert in an AUP engagement.
• Restrictions on the distribution and use of the AUP report.
Request for comments
The CFAS welcomes comments on all matters addressed in ED-
ISRS 4400 (Revised), including responses to the specific questions
set out in the Explanatory Memorandum. Comments should be
submitted via email to by 27 February 2019.
All comments will be considered as a public record.
Alternatively, we invite auditors and other interested parties to
submit comments directly to the IAASB, via the , by
15 March 2019.
A copy of ED-ISRS 4400 (Revised) is available on the exposure draft
page on the .
ExposureDraft: ProposedRevisedGuide for Registered
Auditors: Assurance Engagements on Financial
Service Providers’ Separate Accounts (Section 19(3))
and Reporting Requirements (Section 19(4)) of the
Financial Advisory and Intermediary Services Act
The CFAS approved the issuing of the proposed Revised Guide
for Registered Auditors: Assurance Engagements on Financial
Service Providers’ Separate Accounts (Section 19(3)) and
Reporting Requirements (Section 19(4)) of the Financial Advisory
and Intermediary Services Act (this proposed Revised Guide) on
exposure in November 2018 for a period of 90 days.
This proposed Revised Guide provides guidance to registered
auditors (auditors) on various matters relating to the audit, limited
STANDARDS cont.
Issue 44 | October-December 2018 6