Proposed Due Process Policy serves Public Interest The Independent Regulatory Board for Auditors' (IRBA) Committee for Auditing Standards (CFAS) has approved the release of the Proposed Due Process Policy for the Development, Adoption and Issue of Quality Management, Auditing, Review, other Assurance and Related Services Pronouncements (Revised March 2024) in March 2024 on exposure, for public comment until 31 May 2024. This proposed policy serves the public interest by facilitating an understanding of the CFAS' objectives and operating procedures. Previously, the CFAS had issued an exposure draft with the same name (Revised November 2022), which was issued for exposure [...]

IESBA Staff Releases a High-Level Summary of Prohibitions in the IESBA Code for Audits of Public Interest Entities The staff of the International Ethics Standards Board for Accountants (IESBA) released a high-level summary of prohibitions in the International Code of Ethics for Professional Accountants, (including International Independence Standards) (the Code), especially in relation to independence for audits of public interest entities (PIEs), which is available on: https://ifacweb.blob.core.windows.net/publicfiles/2024-03/Summary%20-%20Prohibition%20List%20for%20PIE%20Audit%20Clients%20%28Final%29.pdf The high-level summary is designed to highlight non-assurance services, relationships, interests or circumstances that are prohibited for PIE audits. It will be a useful reference for stakeholders, including regulators and audit oversight [...]

Sustainability Reporting and Assurance Practices of Largest Global Companies Continue to Mature The largest global companies are providing more detail and breadth in their sustainability reporting, and are obtaining a greater scope of assurance on those disclosures, according to an updated report from the International Federation of Accountants (IFAC), AICPA & CIMA. • 98% of companies reported some level of detail on sustainability.                                                                          [...]

Webcast: Overview of the forthcoming IFRS Accounting Standard ‒ IFRS 18 IASB technical staff members Nick Barlow and Juliane-Rebecca Upmeier have introduced IFRS 18 Presentation and Disclosure in Financial Statements, the forthcoming IFRS accounting standard, which will set out the overall requirements for presentation and disclosures in the financial statements. This new standard responds to investors’ demand for better information about companies’ financial performance. It will affect all companies and all investors. IFRS 18 is expected to be issued in April 2024, and will be effective for annual reporting periods beginning on or after 1 January 2027. The webcast [...]

IAASB Launches New Video Series and Global Webinar to Understand the ISA for LCE New resources from the International Auditing and Assurance Standards Board (IAASB) are now available to help stakeholders understand, implement, and use the new standard for audits of smaller and less complex entities (the ISA for LCE). A comprehensive new three-part video series is available and registration has opened for a global webinar. Navigating the ISA for LCE Video Series The newly released video series details important aspects of the standard: • Exploring the Benefits • A Closer Look at Applicability and Use • A Step-by-Step [...]

Exposure Draft: Proposed South African Auditing Practice Statement 7 The Independent Regulatory Board for Auditors' (IRBA) Committee for Auditing Standards (CFAS) has approved for issue the Exposure Draft: Proposed South African Auditing Practice Statement (SAAPS) 7, Transparency Reports of Firms that Audit Financial Statements of Publicly Traded Entities Audit Engagements, available on: https://www.irba.co.za/guidance-to-ras/technical-guidance-for-auditors/exposure-drafts-and-comment-letters The Exposure Draft (ED) was approved for exposure in March 2024, for public comment by 15 June 2024. International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, requires that [...]

Publication of South African Auditing Practice Statement 3 (Revised March 2024), Illustrative Reports, Incorporating Enhanced Auditor Reporting Requirements On 6 March 2024, the Independent Regulatory Board for Auditors' (IRBA) Committee for Auditing Standards approved the South African Auditing Practice Statement (SAAPS) 3 (Revised March 2024), Illustrative Reports for publication. The main reason for revising SAAPS 3 (Revised March 2024) was to incorporate the IRBA Rule on Enhanced Auditor Reporting for the Audit of Financial Statements of Public Interest Entities (PIEs) (EAR Rule) into the illustrative reports. The EAR Rule is available on: https://www.irba.co.za/guidance-for-ras/general-guidance/enhanced-auditor-reporting-ear This SAAPS 3 (Revised March 2024) [...]

Withdrawal of A Guide for Registered Auditors: Combating Money Laundering and Financing of Terrorism The Independent Regulatory Board for Auditors (IRBA) notified registered auditors of the withdrawal of A Guide for Registered Auditors: Combating Money Laundering and Financing of Terrorism. The IRBA Board approved the withdrawal of the guide, due to changes in legislation, notably to the Financial Intelligence Centre (FIC) Act, 2001 (Act No 38 of 2001). These changes include revisions to Schedules 1, 2 and 3 of the FIC Act that removed the IRBA as a supervisory body, effective from 19 December 2022. Registered auditors should familiarise [...]

CIPC Enforcement of BO filing and Securities Register The Companies and Intellectual Property Commission (CIPC) issued a follow-up notice (Notice 5 of 2024) on 6 February 2024 as a follow-up enforcement notice to the one that was issued in September 2023 (Notice 53 of 2023). The CIPC implemented a beneficial ownership register from 1 April 2023 on a voluntary basis. The filing of beneficial ownership filings and securities registers became mandatory from 24 May 2023 upon promulgation of the Amended Companies Regulations. Pre-existing entities, which had their anniversary date after the promulgation of the amended Companies Regulations, are required [...]

IRBA Board Adopts Narrow-scope Amendments to ISA 700 (Revised) and ISA 260 (Revised) In January 2024, the Independent Regulatory Board for Auditors' (IRBA) Board approved the International Auditing and Assurance Standards Board's (IAASB) narrow-scope amendments to International Standard on Auditing (ISA) 700 (Revised), Forming an Opinion and Reporting on Financial Statements, and ISA 260 (Revised), Communication with Those Charged with Governance as a Result of the Revisions to the IESBA Code that Require a Firm to Publicly Disclose When a Firm Has Applied the Independence Requirements for Public Interest Entities (PIEs) for adoption, issue and prescription by registered auditors [...]