Staff Audit Practice Alert 10: Key Considerations The environment in which clients operate has become more complex, with increased regulatory requirements, and new and revised legislation in many industries – impacting the relevant acceptance and continuance assessments that audit firms make. With the assistance of the Committee for Auditing Standards, the Independent Regulatory Board for Auditors (IRBA) has issued the Staff Audit Practice Alert 10: Key Considerations – Acceptance and Continuation of Client Relationships of Audit Engagements (IRBA Staff Audit Practice Alert), to assist registered auditors. This IRBA Staff Audit Practice Alert provides registered auditors with key considerations regarding [...]

Key Considerations for Professional Accountants on the Voluntary Carbon Credit Markets Published by IFAC, CPA Canada and ISF Voluntary Carbon Markets (VCMs) were created to mobilise private capital at scale towards nature-based climate solutions and innovative low-carbon technologies. The use of carbon credits within VCMs to reduce greenhouse gas emissions has been hotly debated and is increasingly being scrutinised. The International Federation of Accountants (IFAC), Chartered Professional Accountants of Canada (CPA Canada) and the Institute for Sustainable Finance (ISF) published a resource for professional accountants, and existing and potential market participants, including businesses, capital providers and the broader public, [...]

Treasury Imposes New Hefty Maximum Fines for Rogue Auditors Rogue independent auditors and auditing firms in South Africa will be facing hefty penalties of up to R25 million, if they are found guilty of improper conduct as the National Treasury tightens controls. Minister of Finance Enoch Godongwana gazetted the latest notice of maximum fines for registered auditors found guilty of improper conduct, after the notice of maximum fines previously gazetted in June 2023 was withdrawn in January 2024. These maximum fines will be applicable to improper conduct committed from 6 June 2024, the date of publication of gazette notice [...]

IASB Issues Narrow-scope Amendments to Classification and Measurement Requirements for Financial Instruments The International Accounting Standards Board (IASB) has issued amendments to the classification and measurement requirements in IFRS 9 Financial Instruments, which will address diversity in accounting practice. Read Amendments to the Classification and Measurement of Financial Instruments ‒ Amendments to IFRS 9 and IFRS 7, available on: https://www.ifrs.org/premium/ These amendments respond to feedback from the 2022 Post-implementation Review of the Accounting Standard, available on: https://www.ifrs.org/news-and-events/news/2022/12/iasb-publishes-its-review-of-classification-and-measurement-requirements-related-to-financial-instruments/ They also clarify the requirements in areas where stakeholders have raised concerns, or where new issues have emerged since IFRS 9 was [...]

The IFRS Foundation Releases Jurisdictional Guide at IOSCO Annual Meeting The International Financial Reporting Standards (IFRS) Foundation has released a guide to help jurisdictions design and plan their adoption or other use of International Sustainability Standards Board (ISSB) Standards. The Inaugural Jurisdictional Guide for the adoption or other use of ISSB Standards (Guide) was published at the International Organisation of Securities Commissions (IOSCO) Annual Meeting in Athens. The Guide aims to show market participants how jurisdictions are progressing towards delivering globally consistent and comparable sustainability-related information. It acknowledges various ways in which jurisdictions may use the ISSB Standards, as [...]

Council for Medical Schemes Publication that Impacts Auditor’s Reports There has been a recent regulatory development subsequent to a previous communication on 28 March 2024, in respect of the revisions to the IFRS Foundation® Trade Mark Guidelines, which is available on: Click Here The Council for Medical Schemes (CMS) has issued Circular 15 of 2024, titled ‘IFRS Foundation trademark impact on auditor report templates’, available on: Click Here This circular informs stakeholders about the publication of the revised prescribed auditor report templates for medical schemes, effective for auditor’s reports of annual reporting periods of medical schemes beginning on 1 [...]

Guide for Registered Auditors: Joint Audit Engagements (Revised May 2024) The Independent Regulatory Board for Auditors’ (IRBA) Committee for Auditing Standards has approved the Guide for Registered Auditors, Joint Audit Engagement (Revised May 2024) (this Guide) for final issue. This Guide provides guidance to registered auditors on the application of International Standards on Auditing and IRBA pronouncements when auditors or firms perform a joint audit engagement. This Guide has been revised to include sources of information and/or procedures that a joint auditor may consider in determining that there are appropriate systems of quality management in place at each firm [...]

SAICA Media Release on the Audit and Review of Legal Practitioners' Business Accounts On 14 March 2024, the Gauteng Division of the High Court handed down an order in a matter between the Law Society of South Africa (LSSA) and the Companies and Intellectual Property Commission (CIPC). The matter related to the audits and independent reviews of law firms as envisaged in the Companies Act. The court order came to SAICA’s attention on various public platforms, and SAICA was not a party to the court action. SAICA approached the CIPC, LSSA, the Independent [...]

An opportunity to influence worldwide accounting education: IFAC International Education Standards The International Federation of Accountants (IFAC) recently proposed changes to the International Education Standards (IES) related to sustainability assurance. The Independent Regulatory Board for Auditors (IRBA) was involved in, and contributed to a rigorous process undertaken by IFAC. The process involves inviting stakeholders, including professional bodies, academics and educators, firms, trainees, investors, auditors, regulators, sector education and training authorities, quality councils, other government authorities, preparers and users to contribute to the IFAC’s proposed changes to the IES. Your input will ensure that the standards reflect the evolving needs [...]

SAICA FAQs on the ISA for Less Complex Entities  The prospective adoption of the ISA for LCE in South Africa is a dynamic topic. While the standard has not yet been adopted in South Africa, SAICA has issued FAQs on the ISA for Less Complex Entities to introduce the standard in the South African context. This document, available on the link below, reflects information as of 3 May 2024, and will be updated to reflect significant local or international developments, as and when required. https://saicawebprstorage.blob.core.windows.net/uploads/resources/Introduction_to_the_ISA_for_LCE_Final_3May2024.pdf