ETH I CS
Committee forAuditor Ethics (CFAE)
CFAE issues exposure draft with proposed amendments
to the
IRBA Code of Professional Conduct for Registered
Auditors
relating to the Definition of Public Interest
Entities
On 16 March 2015, the IRBA released an exposure draft with
proposed
amendments to the
IRBA Code of Professional
Conduct for Registered Auditors
relating to the Definition of
Public Interest Entities for public comment.
The rationale for the proposed amendments to the IRBACode
is as follows:
?
In terms of Section 4(1)(b) of the Auditing Profession Act
2005, (Act 26 of 2005) the Regulatory Board must “take
steps it considers necessary to protect the public in their
dealings with registered auditors”;
?
Providing a definition of Public Interest Entity that can be
more consistently applied among registered auditors in
SouthAfrica;
?
In terms of Section 2(c) of the Auditing Profession Act 2005,
one of the objectives of the Act is to “approve the
developments and maintenance of internationally
comparable ethical standards”; and
?
Clearing the confusion between Public Interest Entity and
Public Interest Score.
Comments are due by
15May 2015
.
The exposure draft is available on the IRBAwebsite at
6
Issue 29 March - April 2015
REPORTABLE I RREGULAR I T I ES
Below are statistics related to Reportable Irregularities (RIs) processed by the IRBA.
REPORTABLE IRREGULARITIES RECEIVED
Year ended
31 March 2015
Year ended
31 March 2014
Number of reports (1st and 2nd) received and files closed within 40 days
Number of second reports received late (after due date)
Total number of RIs received
946
98% 570
97%
15
2%
19
3%
961
100% 589
100%
CONTINUING/NOT CONTINUING RIs - OF THE TOTAL NUMBER OF RIs RECEIVED:
Year ended
31 March 2015
Year ended
31 March 2014
Continuing
Not continuing
Total number of RIs received
487
50% 345
59%
468
49% 235
40%
6
1%
9
1%
961
100% 589
100%
Did not exist
The number of Reportable Irregularities received has increased by 63%compared to the year ended 31March 2014.
Registered auditors are commended on the improvement of their timely submission of the second reports.
