IRBA NEWSLETTER ISSUE 44

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STANDARDS cont.
CFAS Regulated Industries and Reports Standing
Committee (RIRSC)
Exposure Draft: Proposed South African Auditing
Practice Statement (SAAPS) 3 (Revised 2019),
Illustrative Reports
The CFAS approved the issuing of the proposed South African
Auditing Practice Statement (SAAPS) 3 (Revised 2019), Illustrative
Reports (proposed SAAPS), on exposure in November 2018 for a
period of 90 days.
The proposed SAAPS is aimed at providing practical guidance
to registered auditors who report on financial statements, both
for compliance with the ISAs (or the International Standards on
Review Engagements, as applicable) and the legal and regulatory
requirements applicable to auditors and auditor reporting in South
Africa, as related to the content and format of the auditor’s report.
Section 3 of the Explanatory Memorandum in the proposed SAAPS
contains a number of significant matters deliberated by the CFAS
during the revision of the proposed SAAPS, and specific comments
are requested from respondents on these matters.
These significant matters are as follows:
• New format of the proposed SAAPS;
• New or significantly amended illustrative auditor’s or
independent reviewer’s reports included in the proposed
SAAPS;
• Other information – new guidance;
• Other information – public sector perspective;
• IRBA Code of Professional Conduct for Registered Auditors
(Revised November 2018); and
• Financial Reporting Pronouncements issued by the Financial
Reporting Standards Council.
Proposed effective date
Depending on comments received, the expectation is that the
final SAAPS 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 SAAPS will be effective immediately.
Request for comments
The CFAS welcomes comments on all matters addressed in the
proposed SAAPS, especially those identified in the Request
for Specific Comments section (Section 4) of the Explanatory
Memorandum.
We invite registered auditors and other interested parties to submit
any comments regarding the proposed SAAPS to the IRBA by 28
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
Further implications of the Codes on the auditor’s and
assurance provider’s reports
We ask that you remain alert for a communique expected to be
issued in January 2019 that will further deal with the implications
of the IRBA Code of Professional Conduct for Registered Auditors
(Revised November 2018) and the International Ethics Standards
Board for Accountants’ International Code of Ethics for Professional
Accountants (including International Independence Standards) on
the auditor’s and assurance provider’s reports.
Revised Illustrative Banks Act Regulatory Auditor’s
Reports
The CFAS approved the issue of the revised illustrative Banks Act
regulatory auditor’s reports on the Banks Act Returns (revised
illustrative regulatory reports) for use by registered auditors (auditors)
for banks with year-ends on or after 31 December 2018 as follows:
• South African and Consolidated Operations – Revised
Illustrative Regulatory Reports A-I; and
• Foreign Operations (BA 610 returns) – Revised Illustrative
Regulatory Reports A-H.
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
Prudential Authority on various regulatory matters.
In terms of Regulation 46(6) of the Banks Act, the revised illustrative
reports have been rendered in accordance with the wording and
practices that the Prudential Authority, the South African Institute
of Chartered Accountants (SAICA) and the IRBA agree to from time
to time.
The revised illustrative reports are available in both PDF and Word
formats and may be downloaded from the
International Audit and Assurance Standards Board
(IAASB)
IAASB projects in progress
• Quality management at engagement level (ISA 220).
• Quality management at firm level (ISQM 1).
• Engagement Quality Review (EQR) (ISQM 2) – NEWSTANDARD
– see for more information.
• Group audits (ISA 600).
• Professional scepticism.
• Auditor risk assessments (ISA 315 (Revised)).
• Data analytics.
• Integrated reporting (emerging forms of external reporting)
assurance.
More information on these projects is available on the
.
Issue 44 | October-December 2018 8