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 [...]

FICA and AML After NOCLAR and RIs, what about FICA and Anti-money laundering (AML)? What is money laundering and financing of terrorism? Money laundering refers to any act that disguises the criminal nature or the location of the proceeds of a crime. If a person commits an act or enters into a transaction knowing or reasonably expected to have known that the money or property is the proceeds of a crime, the person would have committed a money laundering offence. In South Africa this concept [...]

NOCLAR vs RIs NOCLAR versus Reportable irregularities Do you really have to consider NOCLAR when you are already measuring non-compliance against Reportable irregularity (RI) requirements? What is NOCLAR? Non-compliance with laws and regulations (NOCLAR) “comprises acts of omission or commission, intentional or unintentional, which are contrary to the prevailing laws or regulations committed by the following parties: (a) A client; (b) Those charged with governance; (c) Management of a client; or (d) Other individuals working for or under the direction of a client.” The IRBA [...]

Root Cause Analysis What is root cause analysis and why is it necessary? Root cause analysis (RCA) is a problem-solving method used for identifying the root causes of faults and/or problems, for example, the underlying causes behind review findings, whether specific to one audit, or more widespread inside the firm as a whole or further afield. RCA is conducted with the aim of developing appropriate and achievable remedial action to prevent recurrence of the issues identified. According to the 2017 IRBA Public Inspections Report, "There [...]