IRBA Newsletter Issue 53

Issue 53 | January-March 2021 13 The respondent was sentenced to a fine of R120 000, of which R60 000 has been suspended for three years, on condition that the respondent is not found guilty of improper conduct relating to work done during the period of suspension; no cost order; and publication by the IRBA in general terms. Matter 25 The respondent failed to obtain sufficient appropriate audit evidence on intangible assets. There was no consideration on the audit file regarding the appropriateness of the interoffice opinion expressed. The respondent was sentenced to a fine of R100 000, of which R50 000 has been suspended for three years, on condition that the respondent is not found guilty of improper conduct relating to work done during the period of suspension; no cost order; and publication by the IRBA in general terms. Matter 26 The respondent failed to obtain sufficient appropriate audit evidence on revenue, inventory, related party transactions and balances, and completion procedures. In addition, the audit report was signed before the directors approved and signed the financial statements. The respondent was sentenced to a fine of R100 000, of which R50 000 has been suspended for three years, on condition that the respondent is not found guilty of improper conduct relating to work done during the period of suspension; no cost order; and publication by the IRBA in general terms. Matter 27 The respondent failed to obtain sufficient appropriate audit evidence on revenue and did not review audit work timeously. Furthermore, the information provided by the entity was not assessed for completeness and accuracy. In addition, there was no assessment whether adjustments from one accounting framework to another were appropriately accounted for. The respondent was sentenced to a fine of R90 000, of which R45 000 has been suspended for three years, on condition that the respondent is not found guilty of improper conduct relating to work done during the period of suspension; no cost order; and publication by the IRBA in general terms. Matter 28 The respondent failed to obtain sufficient appropriate audit evidence on revenue and the tax balance. The respondent was sentenced to a fine of R80 000, of which R40 000 has been suspended for three years, on condition that the respondent is not found guilty of improper conduct relating to work done during the period of suspension; no cost order; and publication by the IRBA in general terms. Matter 29 The respondent failed to obtain sufficient appropriate audit evidence on the deferred tax asset and going concern. In addition, there were deficiencies in control and substantive testing on numerous balances and transactions. The respondent was sentenced to a fine of R100 000, of which R50 000 has been suspended for three years, on condition that the respondent is not found guilty of improper conduct relating to work done during the period of suspension; no cost order; and publication by the IRBA in general terms. Matter 30 The respondent failed to obtain sufficient appropriate audit evidence on revenue and goodwill. In addition, the respondent did not appropriately address the risk regarding management override of controls, and the documentation regarding risk assessment and planning discussions was inadequate. Furthermore, there were material inaccuracies regarding the amounts included in the qualification paragraphs of the audit report. The respondent was sentenced to a fine of R120 000, of which R60 000 has been suspended for three years, on condition that the respondent is not found guilty of improper conduct relating to work done during the period of suspension; no cost order; and publication by the IRBA in general terms. Matter 31 The respondent failed to obtain sufficient appropriate audit evidence on revenue and fraud risks. In addition, the respondent failed to obtain an understanding of the entity’s controls relevant to significant risk areas. The respondent also failed to appropriately address deficiencies identified during the performance of control testing and substantive analytical procedures. The respondent was sentenced to a fine of R120 000, of which R60 000 has been suspended for three years, on condition that the respondent is not found guilty of improper conduct relating to work done during the period of suspension; no cost order; and publication by the IRBA in general terms. Matter 32 The respondent failed to obtain sufficient appropriate audit evidence on revenue, and inadequate completion procedures were performed. In addition, the information provided by the entity was not assessed for completeness and accuracy. Furthermore, the audit opinion issued to the group auditors was incorrect. The respondent was sentenced to a fine of R120 000, of which R60 000 has been suspended for three years, on condition that the respondent is not found guilty of improper conduct relating to work done during the period of suspension; no cost order; and publication by the IRBA in general terms. INVESTIGATIONS cont.