LATEST UPDATE IASB updates IFRS Accounting Standards for nature-dependent electricity contracts The International Accounting Standards Board (IASB) has issued targeted amendments to help companies to better report the financial effects of nature-dependent electricity contracts, which are often structured as power purchase agreements. Nature-dependent electricity contracts help companies to secure their electricity supply from sources such as wind and solar power. The amount of electricity generated under these contracts may vary based on uncontrollable factors such as weather conditions. Current accounting requirements may not adequately capture how these contracts affect a company’s performance. [...]

LATEST UPDATE Adoption of the International Auditing and Assurance Standards Board’s 2023-2024 Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements The Independent Regulatory Board for Auditors (IRBA) draws the attention of all registered auditors to Board Notice No. 690 of 2024 (Government Gazette No. 51636), titled ‘The Adoption of the International Auditing and Assurance Standards Board’s (IAASB) 2023-2024 Handbooks of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements in terms of the Auditing Profession Act 26 of 2005, as amended’. To that end, the [...]

LATEST UPDATE Revised Due Process Policy and Status and Authority of Auditing Pronouncements (Revised November 2024)SAICA Ethics Case Studies Released The Independent Regulatory Board for Auditors’ (IRBA) Board has approved: The Due Process Policy for the Development, Adoption and Issue of Quality Management, Auditing, Review, other Assurance and Related Services Pronouncements (Revised November 2024) (Revised Due Process Policy) The Status and Authority of Quality Management, Auditing, Review, other Assurance and Related Services Pronouncements (Revised November 2024) (Revised Status and Authority of Auditing Pronouncements). The Revised Due Process Policy is aimed at serving [...]

LATEST UPDATE SAICA Ethics Case Studies Released SAICA released ethics case studies that were derived from a variety of sources, including past SAICA disciplinary cases, questions submitted to the ethics team at SAICA, and discussions with members about actual or hypothetical scenarios. Some have been adapted to make for a rich and concise case study The ethics case studies may be accessed on: https://saicawebprstorage.blob.core.windows.net/uploads/resources/Ethics-Case-study.pdf more

LATEST UPDATE CFAS publishes its standard-setting priorities The Committee for Auditing Standards (CFAS), a statutory committee of the Independent Regulatory Board for Auditors (IRBA), has approved the projects that will be included in its work programme for the following two years. CFAS has selected the following 14 projects for 2025: Adoption of the International Auditing and Assurance Standards Board (IAASB) Revised Going Concern Standard Adoption of the IAASB Revised Fraud Standard Adoption of the IAASB Public Interest Entity (PIE) changes to standards (Track 1) Adoption of the IAASB PIE changes to standards [...]

LATEST UPDATE Publication of the South African Auditing Practice Statement 7, Transparency Reports of Firms that Audit Financial Statements of Publicly Traded Entities The Independent Regulatory Board for Auditors’ (IRBA) Committee for Auditing Standards has approved the South African Auditing Practice Statement (SAAPS) 7, Transparency Reports of Firms that Audit Financial Statements of Publicly Traded Entities Audit Engagements (SAAPS 7) for publication, available on: https://www.irba.co.za/upload/SAAPS%207%202024.pdf The aim of SAAPS 7 is to assist firms that audit financial statements of publicly traded entities to achieve compliance with paragraphs 33(d)(ii) and A114 of the [...]

LATEST UPDATE FATF SA Greylisting Progress National Treasury issued a media release on 25 October 2024 on FATF greylisting – South Africa’s positive progress as at October 2024. South Africa has addressed 16 out of the 22 action items in its FATF Action Plan, with six items still outstanding, which include demonstrating a sustained increase in the investigation, and prosecution of complex money-laundering and terror-financing cases, and ensuring timely access to accurate beneficial ownership information. The media release is available on: https://www.fic.gov.za/newsroom/#media-releases more

LATEST UPDATE IRBA Board not to adopt the ISA for LCE On 29 October 2024, the Independent Regulatory Board for Auditors’ (IRBA) Board approved a decision not to adopt, issue or prescribe the International Standard on Auditing (ISA) for Audits of Financial Statements of Less Complex Entities (LCE) (ISA for LCE) (and conforming amendments to other International Standards arising from the standard) for use by registered auditors in South Africa. The IRBA, through its Committee for Auditing Standards (CFAS), had undertaken an extensive analysis to assess the possible outcomes of adopting the [...]