The SAICA Code of Professional Conduct, 2023 Edition SAICA has published the 2023 edition of the SAICA Code on its website, available on: https://saicawebprstorage.blob.core.windows.net/uploads/SAICA-Code-of-Professional-Conduct-2023.pdf The SAICA Code of Professional Conduct (Code) is the foundation of the profession and assists the profession with maintaining its reputation. Therefore, SAICA requests members and associates to remain up to date with the Code and to ensure compliance. Members and associates are reminded of the revisions to the Code relating to the Definition of Engagement Team and Group Audits, which became effective on 15 December 2023, and urge members and associates to familiarise themselves [...]

IAASB Opens Public Consultation to Strengthen Auditors' Efforts Related to Fraud The International Auditing and Assurance Standards Board (IAASB) has published a consultation document that proposes a significant strengthening of its International Standard on Auditing (ISA) 240 (Revised), The Auditors’ Responsibilities Relating to Fraud in an Audit of Financial Statements (the Exposure Draft), which includes: • Clarified auditor responsibilities • Emphasised professional scepticism • Strengthened identification and assessment of risks of material misstatement • Clarified response to fraud or suspected fraud • Increased ongoing communication with management and those charged with governance about fraud • Increased transparency • Enhanced [...]

Latest Public Inspections Report Shows Minor Improvements in Addressing the Rapid Changes and Complexity in the Environment The Independent Regulatory Board for Auditors' (IRBA) 2023 Public Inspections Report on Audit Quality (PIR) provides insights into the themes, and outcomes that were the focal point for the inspections conducted during the 2023 financial year. The report provides observations from the outcomes of the Inspections Committee's deliberations on the inspections performed, as well as observations on the state of audit quality in the country. The firm leadership responsibilities and the inspections approach to the new suite of Quality Management standards, in [...]

Notice of Withdrawal and Reissuance of Maximum Fines for Auditors guilty of Improper Conduct On 5 January 2024, the Minister of Finance gazetted a notice of withdrawal of the notice of maximum fines for improper conduct of registered auditors, issued on 15 June 2023, and issued a new maximum fine notice for a comment period of 30 days. This does not reverse the notice of maximum fines for improper conduct as promulgated by the Minister on 15 June 2023, which will remain applicable for improper conduct committed from 15 June 2023 until the adoption of the new notice for [...]

IFAC Publishes Sustainability & Education Literature Review The International Federation of Accountants (IFAC) released a literature review, Educating Accountants for a Sustainable Future: A Literature Review of Competencies, Educational Strategies, and Challenges for Sustainability Reporting and Assurance, available on: https://www.ifac.org/knowledge-gateway/preparing-future-ready-professionals/publications/educating-accountants-sustainable-future?utm_source=Main+List+New&utm_campaign=4e3ca252e4-IFAC-lit-review-alert&utm_medium=email&utm_term=0_-4e3ca252e4-%5BLIST_EMAIL_ID%5D The review highlights key themes in current sustainability-related education, learning and development to provide insights on how the global accountancy profession can meet stakeholder demands for relevant and reliable sustainability reporting. The document identifies the new and existing competencies required of professional accountants to provide relevant sustainability-related services; educational strategies to develop them; and the challenges the accountancy education [...]

IESBA Announces Successful Completion and Approvals of Sustainability Exposure Draft and Tax Planning-related Ethics Standard The International Ethics Standards Board for Accountants (IESBA) has completed and approved an Exposure Draft on Ethics and Independence Standards for Sustainability Reporting and Assurance, and the final Ethics Standard for Tax Planning and Related Services. Other major achievements include the approval of an Exposure Draft on the Use of Experts, and the IESBA’s Strategy and Work Plan for 2024-2027. The IESBA approved the new International Ethics Standards for Sustainability Assurance (including International Independence Standards), and proposed revisions to the International Code of Ethics [...]

IAASB opens Public Consultation on Narrow Scope Amendments to meet Expectations for Public Interest Audits The International Auditing and Assurance Standards Board (IAASB) launched a consultation process on proposed narrow scope amendments to achieve greater convergence with the International Ethics Standards Board for Accountants’ (IESBA) International Code of Ethics for Professional Accountants (Including Independence Standards). These proposed revisions have two key objectives. Firstly, to align definitions and requirements in IAASB standards with new definitions for publicly traded and public interest entities (PIE) in the IESBA Code. Secondly, to extend the applicability of existing differential requirements for listed entities to [...]

Finalised Disciplinary and Investigation Matters In the latest issue of IRBA News, Issue 64, five finalised disciplinary matters and 24 finalised investigation matters were reported. In two of the disciplinary matters, reportable irregularities were not reported to the IRBA. One matter related to a failure to maintain independence, and another to a failure to exercise professional scepticism, in relation to the acceptance and continuing of engagements. Some matters also related to misappropriation of funds and not properly discharging their duties towards clients. In several of the investigation matters, sufficient appropriate audit evidence was not obtained for material balances, and [...]

REMINDERS: Newly Effective Audit-Related Revisions and Standards-Related Exposure Draft REMINDER: Recent amendments apply to the International Standards on Auditing (ISAs); the International Standards on Quality Management; certain sections of the IRBA Code (Revised April 2023); and the IRBA Pronouncements. The revisions are: • ISA 600 (Revised), Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors) and the Conforming and Consequential Amendments to Other International Standards • Revisions to the IRBA Code relating to the Definition of Engagement Team and Group Audits • South African Auditing Practice Statement 3 (Revised May 2019), Illustrative Reports • [...]

The Adoption of the International Auditing and Assurance Standards Board's 2022 Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements The IRBA has resolved to adopt, issue and prescribe the following publications: 1. Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements, 2022 Edition, Volume 1. 2. Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements, 2022 Edition, Volume 2. 3. Supplement to the Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements, 2022 Edition, Volume 3. IRBA has posted the publications listed [...]