General news in Leaf Quality Systems

Newsletter May2024


Property Practitioners: Payment Processing Agents Many property practitioners make use of payment processing agents. Payment processing agents meet the definition of a service organisation, and should be evaluated by the auditor, in terms of the requirements of ISA 402. However, in many instances, auditors omit to document how they considered these requirements for payment processing agents used by property practitioners. This article explains the key requirements of ISA 402, and how it applies to the payment processing agents. ISA 402 requirements The key requirements of ISA 402 may be summarised as follows: If the entity [...]

Newsletter May20242024-05-30T23:35:36+02:00

Newsletter April 2024


Proposed Changes to Fraud Standard The IAASB published an exposure draft in February 2024, which proposes a significant strengthening of ISA 240, The auditor’s responsibilities relating to fraud in an audit of financial statements (ED-240). The proposed changes should be considered thoroughly, and comments submitted to the IRBA by 10 May 2024, or to the IAASB by 5 June 2024, as the proposed revised standard will affect all auditors. Work effort required, if fraud or suspected fraud is identified The IAASB is proposing the following revisions in ED-240 to enhance clarity around the auditor’s response [...]

Newsletter April 20242024-04-29T15:40:22+02:00

Newsletter March 2024


Legal Practitioners: Agreed-upon Procedures The legislative landscape for legal practitioners’ trust accounts is continuously changing, and it remains crucial for auditors to remain up to date to ensure full compliance with the requirements. During 2023, the Legal Practitioners Fidelity Fund (LPFF) and SAICA issued several communications regarding the Application for a Refund of Bank Charges and Audit Fees form and the subsequent procedures that auditors need to perform. It is important to understand and apply these requirements correctly. Application for a Refund of Bank Charges and Audit Fees form In terms of section 57(2) of [...]

Newsletter March 20242024-03-28T10:18:11+02:00

SAICA Training Regulations 2024


SAICA Training Regulations 2024 SAICA recently issued their updated Training Regulations, effective from 1 January 2024. Training officers must ensure that the current version of the Training Regulations is communicated to all trainees and other role-players in the training programme, so that it may be applied in relation to their responsibilities. This article provides an overview of the most significant changes from the previous version of the Training Regulations. Training offices The term, ‘re-accreditation visit’, was replaced by ‘monitoring visit’, resulting in several modifications and benefits for training offices. Training offices will now remain accredited, [...]

SAICA Training Regulations 20242024-01-31T11:05:39+02:00

Newsletter December 2023


Navigating the Crucial Phases of Audit Completion As the year is drawing to a close, many audits are being finalised. Completing an audit is a multifaceted process that involves meticulous attention to detail, comprehensive analysis, and rigorous adherence to established protocols. As auditors approach the culmination of their engagements, several key components demand intricate scrutiny and consideration to ensure the accuracy, compliance, and reliability of financial statements. Let's explore these essential elements integral to audit completion procedures. Subsequent events procedures Subsequent events occurring between year-end and the date of the audit report may impact an [...]

Newsletter December 20232023-12-13T09:50:57+02:00

Newsletter November 2023


Public Interest Entities The final pronouncement on the revisions to the definitions of ‘listed entity’ and ‘public interest entity’ has finally been issued by the IRBA. Therefore, it is time for South African auditors to determine how these local revisions impact their firms, and to adapt, as necessary. The revised requirements are effective for audits of financial statements for periods beginning on or after 15 December 2024, with early adoption permitted. Definition of a PIE Up to now, the definition of a public interest entity (PIE), according to the IRBA Code included: a. Listed entities [...]

Newsletter November 20232023-11-30T08:39:32+02:00

Newsletter October 2023


Audit Sampling Auditors apply audit sampling in almost every audit engagement. However, very often, auditors do not adequately document their thought processes on how the sample size was determined, and how the sample was selected from the population. Also, deviations and misstatements aren’t always identified, and responded to appropriately. It is important for sampling considerations to be clearly documented to support professional judgment applied, and compliance with the requirements. Reliable information When designing and performing audit procedures, the auditor must start by considering the relevance and reliability of the information to be used as audit [...]

Newsletter October 20232023-10-30T10:45:28+02:00

Newsletter September 2023


Providing non-audit services to audit clients All audit firms strive to add value to their clients, which often takes the form of providing additional non-audit services. Providing such non-assurance services to audit clients may, however, create an independence threat. It is important to identify, evaluate and address the threat to ensure that independence is maintained. This does not necessarily mean that the non-audit service should be terminated, depending on the circumstances, provided that adequate safeguards are in place. Providing accounting and other services to statutory audit clients Section 90(2)(b) of the Companies Act requires that, [...]

Newsletter September 20232023-09-28T11:24:24+02:00

Auditors as trust and company service providers


Auditors as trust and company service providers Since the amended Schedule 1 of the Financial Intelligence Centre Act, 2001 (FIC Act of 2001) became effective, many questions have arisen in practice regarding its interpretation. The FIC has now issued a Public Compliance Communication to provide more clarity and guidance on which entities need to register as accountable institutions. It is of critical importance that practitioners understand and implement this as a matter of urgency, as there are penalties for late registration. Definition of trust and company service providers (TCSPs) The list of accountable institutions contained in [...]

Auditors as trust and company service providers2023-08-31T09:03:45+02:00

Business Combinations and Related Disclosures


Business Combinations and Related Disclosures When performing a group audit, one can become so involved in verifying the detailed consolidation workings that one may omit to specifically consider the impact of business combinations. The relevant financial reporting framework establishes principles and requirements for the recognition, measurement and disclosure of business combinations by the acquirer during the financial reporting period. It is important that the auditor verifies whether business combinations are correctly dealt with in terms of the requirements. Accounting for business combinations IFRS for SMEs Section 19 para 19.6 refers to the application of the purchase [...]

Business Combinations and Related Disclosures2024-03-11T13:26:05+02:00


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