General news in Leaf Quality Systems

Knowledge of the business


Knowledge of the business There is usually pressure on auditors to perform audits within tight deadlines, which often leads to jumping straight into fieldwork testing without spending adequate time on getting to know the client’s business or changes in the business from the previous year. However, gaining, and documenting a thorough understanding of the entity is a crucial step. It supports the risk and fraud risk assessment being performed, and the determination of the audit approach, while being the biggest source of identifying misstatements. The entity and its environment The auditor needs to perform risk [...]

Knowledge of the business2022-07-19T12:27:23+02:00

Engagement quality reviews


Engagement quality reviews Since the inception of ISQC 1, it has been a requirement that audit firms perform engagement quality reviews for appropriate engagements. These reviews are aimed at providing an objective evaluation of the significant judgments made by the engagement team and conclusions reached in formulating the report. However, do you really know when these reviews need to be performed; who can perform them and what they entail? When an engagement quality review is required Per ISQM 1 para. 34 (f), engagement quality reviews must be performed for: (i) audits of financial statements of [...]

Engagement quality reviews2022-07-01T10:55:13+02:00

Improving Audit Quality


Improving Audit Quality Annually, audit firms invest vast quantities of blood, sweat and tears in delivering quality auditing and related services to their clients. Yet, audit regulators still report many common audit quality deficiencies in their annual inspections reports, most of which are repeat findings. It is important to root out the causes to make lasting improvements to audit quality, which, in turn, will lead to efficient and profitable firms. Firm-level deficiencies – quality system Firm-wide deficiencies reported on by audit regulators mainly revolve around firm leadership, engagement performance and independence issues. While some improvements have [...]

Improving Audit Quality2022-05-30T16:01:59+02:00

The Impact of POPIA


The Impact of  POPIA The Protection of Personal Information Act, 2013 (Act No. 4 of 2013), otherwise known as POPIA, came into effect on 1 July 2020. Responsible parties were granted a grace period of 12 months to ensure compliance with POPIA by 30 June 2021. This means that responsible parties must be able to prove compliance from 1 July 2021. The Information Regulator of South Africa may not yet be fully geared for monitoring compliance on a regular basis, but the regulator will investigate, if any claims are lodged against responsible parties. The consequences for non-compliance are significant. [...]

The Impact of POPIA2021-09-21T22:12:27+02:00

Newsflash: IFAC Practice transformation action plan


Newsflash: IFAC Practice transformation action plan Welcome to the Fast-Future We will not recognise the accountancy profession in the next 10 years. Actually, the fact of the matter is that it will probably be in the next five years. —Barry Melancon, President & CEO, American Institute of CPAs and CEO, Association of International Certified Professional Accountants We live in a dynamic, fast-paced world. Accenture predicted that advances in robotics would automate, or eliminate 40% of basic accounting roles by 2020. Within 10 years, robots [...]

Newsflash: IFAC Practice transformation action plan2020-06-22T16:58:02+02:00

Subsequent events – COVID


SUBSEQUENT EVENTS – The Topic We All Jumped to with the COVID Virus Lockdown, without Reading the Standard Subsequent events — the topic we all jumped to when the COVID-19 virus hit and the lockdown became a reality. How difficult can it be? Look at your adjusting and non-adjusting events and move on. And, of course, this strategy may be applied to all engagements not completed yet. Thank God, you say, the completed engagements have fallen outside the net. Not true. A scenario which was seldom relevant in the past, and hardly ever received any attention, has now hit us without us [...]

Subsequent events – COVID2020-05-20T15:29:40+02:00

Why is audit so easy?


Why Is Audit So Easy? Confidence Very few auditors and students have the confidence to perform their duties. The key to being a good auditor or auditing student, is to become a professional auditor. Not on paper, but in their mind, and their whole being. A student that wakes up in the morning and sees a fearful student in the mirror, trying to motivate him or herself to do well in the exam, or at work, is already at a disadvantage. But students [...]

Why is audit so easy?2021-09-19T17:37:37+02:00

Risk Assessment


Risk Assessment Risk assessment Many audit failures are caused by bad planning and incorrect risk assessment. Unidentified significant risks could lead to material misstatements. This article addresses common pitfalls and how to address them. Common findings: Revenue The IRBA Public Inspections Report, 2018 identified the following common risk assessment issues relating to revenue: • Findings related to incorrect justification for risk assessment, i.e. insufficient justification documented on the audit file regarding the assertions identified as significant risks • Work performed did not always agree [...]

Risk Assessment2019-10-01T17:36:25+02:00

Attorneys: audit report template


Attorneys: audit report template Important news for the current reporting period SAICA has issued a very important communication regarding the audit report template to be used for attorneys trust accounts for the current year. SAICA's communication on the transitional arrangement relating to the Legal Practice Act and Legal Practice Council Rules is available on the SAICA website. How is this different from previous communications? In the LEAF Webinar on Attorneys trust accounts and in the previous newsletter on the same topic, dual reporting was [...]

Attorneys: audit report template2019-07-25T09:29:52+02:00

Common Issues Identified On Audit Files Of Body Corporates


Common Issues Identified On Audit Files Of Body Corporates Body corporates: To audit or not to audit? Just a few years ago new requirements came into effect that have changed the landscape for auditors of smaller body corporates and have caused many headaches and sleepless nights. Management Rule 26(4) requires that ALL body corporates must be audited, except if all sections / units are registered in the name of one person. In addition to this, Rule 26(5)(a) requires that the [...]

Common Issues Identified On Audit Files Of Body Corporates2019-05-15T19:12:16+02:00

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