STANDARDS
Registered auditors who attended the information sessions
hosted by the IRBA recently would have received a half-hour
update on recent developments in auditing standards. The
topics that were covered were:
?
New auditor reporting – covered in this newsletter;
?
Reportable irregularities – the new 2015 Guide
?
Audit of attorneys trust accounts – the 2014 Guide
?
The five fundamental principles in the IRBA Code
?
The suite of joint IRBA/AGSA public sector audit guides
?
Developments in B-BBEE assurance – covered in this
newsletter.
On its website, the IRBA has a dedicated webpage
promote awareness and understanding as well as assist
registered auditors with the effective implementation of the
reporting standards.
Registered auditors are also referred to the International
Auditing & Assurance Standards Board's (IAASB) dedicated
Reporting Page
)
on the new auditor's report. The page is a source for tools and
resources to promote awareness, understanding and effective
implementation of the reporting standards.
The Board has approved the adoption, issue and prescription
of the IAASB's International Standard on Auditing (ISA) 720
(Revised),
The Auditor's Responsibilities Relating to Other
Information & Related Conforming Amendments
, for use by
registered auditors in South Africa. The standard is effective
New andRevisedAuditor Reporting Standards
The IRBA Board Adopts the IAASB's ISA 720 (Revised),
The Auditor's Responsibilities Relating to Other
Information
for audits of financial statements for periods ending on or after
15 December 2016. Early adoption is permitted.
The communique and the standard are available on the IRBA
IFRS 9: Financial Instruments
The South African Institute of Chartered Accountants (SAICA)
Banking Project Group has established the IFRS 9
Implementation Working Group subcommittee to address
industry issues related to the implementation of IFRS 9,
Financial Instruments, specifically the impairment
requirements. The IRBA is represented on the working group.
Through the working group and the IAASB's Financial
Institutions Working Group, the IRBA will consider whether
South Africa needs specific auditing guidance on the
impairment requirements.
Proposed South African Auditing Practice Statement
(SAAPS) 3 (Revised 2015),
Illustrative Reports
The CFAS approved the release of the Proposed SAAPS 3
(Revised 2015),
Illustrative Reports
, in August 2015 for
exposure for public comment by 19 October 2015.
The proposed SAAPS 3 (Revised 2015) provides guidance to
registered auditors on the layout and wording of assurance
reports in accordance with the requirements of the ISAs and
the International Standards on Review Engagements (ISREs)
and in compliance with South African jurisdictional
requirements, mainly the Companies Act, 2008 (Act No. 71 of
2008) and the Public Audit Act, 2004 (Act No. 25 of 2004). It
also:
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Contains conforming amendments arising from the revised
Auditor Reporting Standards;
?
Provides assistance to auditors on how key audit matters
are addressed in the auditor's report in accordance with the
new ISA 701,
Communicating Key Audit Matters in the
Independent Auditor's Report
; and
?
Provides practical assistance to auditors when reporting in
Committee forAuditing Standards (CFAS)
CFAS Regulated Industries & Reports Standing
Committee (RIRSC)
5
Issue 31 July - September 2015
