IRBA NEWSLETTER ISSUE 44

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STANDARDS cont.
assurance engagement and other reporting obligations for
authorised financial service providers (Providers) in compliance
with the requirements of the Financial Advisory and Intermediary
Services Act, 2002, Act No. 37 of 2002 as amended (the Act), and
its subordinate legislation.
The purpose of this proposed Revised Guide is to provide assistance
to auditors of Providers with respect to the auditor’s responsibilities:
• To report to the Provider in terms of Section 19(3) of the Act;
• To report to the Financial Sector Conduct Authority (Authority)
in terms of Section 19(4) of the Act; and
• Relating to his/her other reporting obligations.
This proposed Revised Guide has been updated for the following:
• Clarifying that the limited assurance engagement (Section
19(3)) is conducted in accordance with the International
Standard on Assurance Engagements (ISAE) 3000 (Revised),
Assurance Engagements Other than Audits or Reviews of
Historical Financial Information;
• Changes to legislation and the IRBA Code of Professional
Conduct for Registered Auditors (Revised November 2018);
• Assurance related guidance in this regard; and
• The auditor’s other reporting responsibilities.
Proposed effective date
Depending on comments received, the expectation is that the final
Revised Guide may be approved and issued by the CFAS in June
2019, with such approval and issue being noted at the subsequent
meeting of the IRBA Board.
It is expected that the proposed Revised Guide will be effective for
engagements commencing on or after 1 July 2019.
Request for comments
The CFAS welcomes comments on all matters addressed in this
proposed Revised Guide and seeks responses to three specific
questions that are set out in the Explanatory Memorandum section.
We invite auditors and other interested parties to submit any
comments regarding this proposed Revised Guide to the IRBA by 7
March 2019 . Comments, in Word format, should be submitted via
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
Proposed Guide for Registered Auditors: Assurance
Engagements on the Fresh Produce Agents’ Trust
Accounts
The CFAS approved the issue of the Proposed Guide for Registered
Auditors: Assurance Engagements on the Fresh Produce Agents’
Trust Accounts (this proposed Guide) in November 2018 for a 90-
day exposure period for public comment.
This proposed Guide was developed by a CFAS Task Group, which
comprised technical staff representatives from auditing firms, the
Agricultural Produce Agents Council, the South African Institute of
Chartered Accountants and the IRBA.
The guidance relates to understanding the nature and
characteristics of an agricultural produce agent, and the nature and
extent of assurance work on the engagement. As a consequence,
this proposed Guide emphasises professional competence and
professional scepticism.
This proposed Guide provides certain practical guidance to be
considered in developing audit programmes. This proposed Guide
does not override the requirements of the International Standards on
Assurance Engagements (ISAE), nor does it purport to deal with all
special considerations that may be relevant in the circumstances of
the engagement. As such, it should not be regarded as a checklist.
This proposed Guide is authoritative and includes:
• Guidance to a registered auditor on conducting an assurance
engagement in accordance with ISAE 3000 (Revised),
Assurance Engagements Other than Audits or Reviews of
Historical Financial Information on a fresh produce agents’ trust
accounts in terms of the Agricultural Produce Agents Act 12
of 1992;
• An illustrative engagement letter and representation letter; and
• Illustrative interim and annual auditor’s reports based on ISAE
3000 (Revised).
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 June 2019 and issued in
the same month, 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 assurance
engagements of financial year-ends of fresh produce agents’ trust
accounts ending on or after 31 December 2020. 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 in PDF format and may be
downloaded from the exposure drafts page on the .
Request for comments
The CFAS welcomes comments on all matters addressed in this
proposed Guide and seeks responses to three specific questions
that are set out in the Explanatory Memorandum section.
We invite auditors and other interested parties to submit any
comments regarding this proposed Guide to the IRBA by 15 March
2019. Comments, in Word format, should be submitted via e-mail
to . All comments will be considered a matter
of public record.
Issue 44 | October-December 2018 7