IRBA Newsletter Issue 54

Issue 54 | April-June 2021 4 STANDARDS cont. objectives at this time, and some proposals discussed in this Consultation Paper are also being explored in other jurisdictions. At this stage, the CFAS is not committing to any specific outcomes of this Consultation Paper and is canvassing ideas on how to enhance transparency in auditor reporting and address the needs of stakeholders that may be in the public interest. This research and other strategic considerations will inform the view about the matters that the CFAS or other IRBA structures need to address. The Consultation Paper discusses additional disclosures that have been drawn from developments in other jurisdictions and auditor’s reports that are in the public domain; and it also seeks to explore the usefulness, benefits and drawbacks of the additional disclosures. These include: • Disclosures about the audit scope and materiality. • Disclosures about the audit effort related to irregularities, including fraud. • Disclosures about the audit effort in relation to going concern. • Disclosures relating to Key Audit Matters. • Disclosures about fees and non-audit services. • Disclosures about the entity’s classification as a public interest entity. • Disclosures about prior year misstatements. • Disclosures about the threshold of unadjusted misstatements. This Consultation Paper may be downloaded from the IRBA website . REGULATED INDUSTRIESANDREPORTSSTANDING COMMITTEE (RIRSC) ProposedConforming andConsequential Amendments to IRBA Pronouncements Arising from the IAASB Quality Management Standards The IRBA has released the Exposure Draft: Proposed Conforming and Consequential Amendments to IRBA Pronouncements arising from the IAASB Quality Management Standards, for exposure for public comment until 4 August 2021 . International Standard on Quality Standard (ISQM) 1 and ISQM 2 replace the International Standard on Quality Control (ISQC) 1. The term “quality management” replaces the term “quality control” throughout the standards. In addition, the term “engagement quality control review” has been replaced with “engagement quality review”. International Standard on Auditing (ISA) 220 (Revised) replaces ISA 220, Quality Control for an Audit of Financial Statements . Many of the IRBA’s pronouncements refer to ISQC 1 and ISA 220. As such, the proposed conforming and consequential amendments will propose the necessary conforming and consequential amendments to the IRBA pronouncements, to avoid non-alignment or conflicts with the new and revised Quality Management Standards. The Exposure Draft may be downloaded from the IRBA website . Estate Agency Affairs Board: 2021 Audit Reports Submission Reminder The Estate Agency Affairs Board (EAAB) issued a reminder on 1 June 2021 regarding the 2021 audit reports submission information. The submission deadline for estate agency firms with a financial year-end of 28 February 2021 is 30 June 2021, and the EAAB has clarified some relevant issues for the benefit of registered auditors and the principals of their estate agency clients. Click here to download the detailed reminder. For any further queries, please contact the EAAB directly at audit@eaab.org.za. PUBLIC SECTOR STANDING COMMITTEE (PSSC) Proposed Guide for Registered Auditors: Guidance on Performing Audits on Behalf of the AGSA (Revised May 2021) The CFAS approved the release of the Proposed Guide for Registered Auditors: Guidance on Performing Audits on behalf of the AGSA (Revised May 2021) (this proposed Revised Guide) in May 2021, for exposure for public comment until 8 July 2021 . This proposed Revised Guide will help improve the understanding and enhance the performance of quality public sector audit engagements by auditors in public practice. These are auditors who perform audit engagements on behalf of the AGSA, including the audit of financial statements, reported performance information and compliance with key legislation, and the additional audit procedures relating to focus areas, in accordance with the requirements of the Public Audit Act No. 25 of 2004 (PAA) (as amended by the Public Audit Amendment Act No. 5 of 2018). This proposed Revised Guide has been updated for the following: • Consequential changes made to the Guide for Registered Auditors: Auditing in the Public Sector (Revised August 2019); • Other relevant amendments arising from the revision of the PAA; and • Alignment of content to the updated AGSA tender process, AGSA contract work policies and procedures as well as the relevant Memorandum of Agreement between the AGSA and the audit firm. The CFAS welcomes comments on all matters addressed in this proposed Revised Guide, and also seeks responses to the two 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. Comments, in Word format, should be submitted via e-mail to standards@irba. co.za . All comments will be considered a matter of public record. A copy of the exposure draft is available in PDF format and may be downloaded from the exposure drafts page on the IRBA website .