IRBA Newsletter Issue 48

Issue 48 | October - December 2019 8 STANDARDS cont. ways, ranging from simple references to the title of the IESBA Code to detailed references to specific paragraphs in the IESBA Code. This project involves coordination between the IAASB and the IESBA. As a strategic engagement between the two Boards, the project builds on their overarching commitment for enhanced connectivity and coordination to better serve the public interest. Relevance to South Africa The IRBA adopted amendments to the IESBA Code, issued during 2018, following the issue of proposed amendments on exposure in South Africa. The IRBA Code is in line with the IESBA Code, together with South African enhancements. Request for Comments We invite registered auditors and other interested parties to submit comments directly to the IAASB via the IAASB website by 10 January 2020 . Respondents are asked to submit their comments electronically (as both PDF and Word files). Copies of the exposure drafts are available in PDF format and may be downloaded from the exposure drafts page on the IRBA website. IAASB Projects in Progress • Auditor risk assessments (ISA 315 (Revised)); • Audit evidence; • Technology; • Quality management at firm level (ISQM 1); • Engagement quality review (ISQM 2); • Quality management at engagement level (ISA 220); • Group audits (ISA 600); • Agreed-upon procedures engagements (ISRS 4400); • Extended external reporting (EER) assurance; • Audits of less complex entities (LCE); and • Professional scepticism. More information on these projects is available on the IAASB website . RECENT AMENDMENTS TO THE JSE LISTINGS REQUIREMENTS In November 2019, the Johannesburg Stock Exchange (JSE) finalised amendments to its Listings Requirements. These amendments include a requirement for the CEO and the financial director of an entity listed on the JSE to make a positive statement confirming that the annual financial statements fairly present the state of affairs of the business, and that internal financial controls are adequate and effective. This particular amendment impacts both the preparer of the annual financial statements as well as the auditor thereof. Auditors are alerted to the following available resources on the subject matter: • Financial Sector Conduct Authority Board Notice 180 of 2019 – Approved Amendments to the JSE Listing Requirement. • Amendment schedule – JSE Listings Requirements (October 2019). • Article: Proposed amendments to the JSE listings requirements and possible impact on the auditor . • Article: How preparers of financial statements and auditors will be impacted by the recent amendments to the JSE Listing Requirements. • The JSE’s transitional arrangements with respect to the Amendments to the JSE Listings Requirements (October 2019 ) . ZIMBABWEAN PUBLIC ACCOUNTANTS AND AUDITORS BOARD PRONOUNCEMENT 01/2019 ON THE APPLICATION OF INTERNATIONAL ACCOUNTING STANDARD 29, FINANCIAL REPORTING IN HYPERINFLATIONARY ECONOMIES The Public Accountants and Auditors Board (PAAB) in Zimbabwe has issued Pronouncement 01/2019 on the Application of International Accounting Standard 29, Financial Reporting in Hyperinflationary Economies (IAS 29), in Zimbabwe (this pronouncement). Following consultative work undertaken by the Zimbabwe Accounting Practices Board (ZAPB), the PAAB has advised that there is a broad market consensus within the accounting and auditing professions that the factors and characteristics to apply IAS 29 in Zimbabwe have been met. According to this pronouncement, it “shall apply to all entities that report based on International Financial Reporting Standards (IFRSs) in Zimbabwe. Entities that report based on International Financial Reporting Standard for Small and Medium Enterprises (IFRS for SMEs) and International Public Sector Accounting Standards (IPSASs) financial reporting frameworks are expected to apply the equivalent standards in those frameworks”. Effective Date According to IAS 29, it is preferable that all entities that report in the currency of the same hyperinflationary economy apply this standard from the same date. Nevertheless, IAS 29 applies to the financial statements of an entity from the beginning of the reporting period in which it identifies the existence of hyperinflation in the country in whose currency it reports. This pronouncement covers the preparation and presentation of financial statements of entities operating in Zimbabwe for the financial periods ended on or after 1 July 2019. Should you have any further queries, please contact the PAAB directly at secretary@paab.org.zw .