Key Questions for Audit Committees Overseeing Sustainability-related Disclosure Organisations must ensure effective oversight arrangements to deliver high-quality, cost-effective reporting conducive to decision-making to implement the International Sustainability Standards Board’s (ISSB’s) standards and jurisdictional standards, and regulatory requirements. As reporting and assurance of sustainability-related disclosure evolves, audit committees have a critical role to play in expanding their existing oversight responsibilities towards financial reporting and compliance to sustainability-related disclosures. Because many professional accountants serve on and are accountable to audit committees, the International Federation of Accountants (IFAC), has released ‘Key Questions for Audit Committees Overseeing Sustainability-Related Disclosure’ to prepare audit committees with effective questions [...]

JSE proposes amendments to the Auditor Accreditation Model On 4 May 2023, the Johannesburg Stock Exchange (JSE) announced proposed amendments to the JSE Listings Requirements and JSE Debt Listings Requirements, relating to the Auditor Accreditation Model. The proposed amendments are available on the JSE’s website, on the following link: https://www.jse.co.za/regulation/companies-issuer-regulation The JSE invites comments on the proposed amendments by email, by close of business on Monday, 5 June 2023, to alwynf@jse.co.za The proposed amendments remove the Auditor Accreditation Model and expand on the information that a listed entity’s audit committee should consider in the assessment of the suitability for the [...]

IRBA Code of Professional Conduct for Registered Auditors (Revised April 2023) The Independent Regulatory Board for Auditors (IRBA) has published the IRBA Code of Professional Conduct for Registered Auditors (Revised April 2023), including Independence Standards (the April 2023 IRBA Code), applicable to all registered auditors, available on: www.irba.co.za/guidance-for-ras/ethics:-the-rules-and-the-code/the-irba-code-revised-april-2023 The purpose of the publication of the April 2023 IRBA Code is to incorporate all the amendments and additions that have been made to the IRBA Code of Professional Conduct for Registered Auditors (Revised November 2018) (the November 2018 IRBA Code) into a single publication. It does not include any new [...]

IESBA Staff Releases Database of Public Interest Entity Definitions by Jurisdiction to Support Local Adoption and Implementation Efforts The Staff of the International Ethics Standards Board for Accountants (IESBA) recently released a database of Public Interest Entity (PIE) definitions by jurisdiction, available on: https://www.ethicsboard.org/publications/database-public-interest-entity-pie-definitions-jurisdiction?utm_source=Main+List+New&utm_campaign=11ec7b061e-EMAIL_CAMPAIGN_2023_04_27_04_25&utm_medium=email&utm_term=0_-11ec7b061e-%5BLIST_EMAIL_ID%5D. These definitions further support the adoption and effective implementation of the revisions to the definitions of listed entity and PIE (PIE revisions) in the International Code of Ethics for Professional Accountants (including International Independence Standards). The PIE revisions specify a broader list of categories of entities as PIEs, where the audits should be subject to additional independence requirements to [...]

IASB increases transparency of companies’ supplier finance The International Accounting Standards Board (IASB) recently issued disclosure requirements to enhance the transparency of supplier finance arrangements and their effects on a company’s liabilities, cash flows and exposure to liquidity risk. This amendment, Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7), becomes effective as follows: IAS 7 amendments: An entity shall apply those amendments for annual reporting periods beginning on or after 1 January 2024, with early application permitted IFRS 7 amendments: An entity shall apply that amendment when it applies the amendments to IAS 7. IFRS digital subscribers, and [...]

IASB amends tax accounting requirements to help companies respond to international tax reform The International Accounting Standards Board (IASB) recently issued amendments to IAS 12 Income Taxes. The amendments give companies temporary relief from accounting for deferred taxes arising from the Organization for Economic Co-operation and Development (OECD) international tax reform. IFRS digital subscribers, and IFRS digital and print subscribers may download the document from the following link: https://www.ifrs.org/issued-standards/list-of-standards/#amendments-and-new-standards

IAASB Opens Public Consultation for Its Revised Going Concern Standard The International Auditing and Assurance Standards Board (IAASB) recently issued proposed revisions to its current standard on going concern, the International Standard on Auditing 570 (Revised), Going Concern. The proposed changes have the following objectives: To promote consistent practice and behaviour, and facilitate effective responses to identified risks of material misstatement related to going concern To strengthen the auditor’s evaluation of management’s assessment of going concern, including reinforcing the importance, throughout the audit, of the appropriate exercise of professional scepticism To enhance transparency, with respect to the auditor’s responsibilities and work related to [...]

IFAC Releases New Implementation Tool for Auditors on Identifying and Assessing Risks of Material Misstatement The International Federation of Accountants (IFAC) has released a new resource, The Risk Identification and Assessment Process: Tips on Implementing ISA 315 (Revised 2019), available by following the link: https://www.ifac.org/knowledge-gateway/supporting-international-standards/publications/risk-identification-and-assessment-process-tips-implementing-isa-315-revised-2019?utm_source=Main+List+New&utm_campaign=cdce03c774-IFAC-alert-315-tool&utm_medium=email&utm_term=0_-cdce03c774-%5BLIST_EMAIL_ID%5D The tool helps auditors with implementing the International Auditing and Assurance Standards Board’s ISA 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement, effective for audits of financial statements for periods beginning on or after 15 December 2021. The resource is based on Chartered Professional Accountants of Canada’s Implementation Tool for Auditors, [...]