Audit Issues & Trends Your Content Goes Here Audit issues and trends to consider: Corroborating evidence for client discussions Enquiry is an audit procedure used extensively throughout the audit, in addition to other audit procedures. Evaluating responses to enquiries is an important part of the enquiry process. Responses to enquiries may provide new information or corroborative audit evidence, or information that differs significantly from other information already obtained, for example, information regarding the possibility of management override of controls. In some cases, responses provide a basis for the auditor to modify, or perform additional audit procedures. Auditors often [...]

Audit Issues & Trends Your Content Goes Here Audit issues and trends to consider: Going concern South Africa’s persistent economic challenges, including load shedding, high unemployment, inflationary pressures, political uncertainty, and constrained fiscal and monetary policy flexibility have created a complex operating environment for South African businesses. Economic instability magnifies going-concern risks such as liquidity shortages, covenant breaches, reduced access to new capital, and declining consumer demand. Management may rely on over-optimistic forecasts or unsecured funding plans to mitigate these risks, necessitating thorough audit scrutiny. From an audit perspective, these conditions heighten the risk of material uncertainties, which [...]

Audit Issues & Trends Your Content Goes Here Audit issues and trends to consider: Reliance on expert reports Audit client management often employs experts to assist with determining values for complex estimates or matters falling outside the expertise of management, e.g. valuations, IFRS review. It is often found that auditors place undue reliance on work performed and reports produced by such experts, without verifying the methods applied and assumptions made by the experts. The results of their work are also not checked carefully when amended, e.g. IFRS reviews on amended draft financial statements. If information to be used [...]