New Standard for Audits of Less Complex Entities Issued by IAASB The International Auditing and Assurance Standards Board (IAASB) has published the International Standard on Auditing (ISA) for Audits of Financial Statements of Less Complex Entities (LCE), which is available on: https://www.iaasb.org/focus-areas/isa-lce-standard-audits-less-complex-entities?utm_source=Main+List+New&utm_campaign=021b6b1758-IAASB-LCE-release-12.6.23&utm_medium=email&utm_term=0_-021b6b1758-%5BLIST_EMAIL_ID%5D The ISA for LCE is a standalone global auditing standard designed specifically for smaller, and less complex businesses and organisations. Built on the foundation of the ISAs, audits performed using this standard provide the same level of assurance for eligible audits: reasonable assurance. The standard is effective for audits beginning on or after 15 December 2025 for [...]

IRBA Rules Arising from the International Standards on Quality Management The Independent Regulatory Board for Auditors (IRBA) has prescribed the IRBA Rules arising from the International Standards on Quality Management, dealing with the following topics. Rule 1: Ultimate responsibility and accountability for the system of quality management Rule 2: Transparency reports for firms that audit financial statements of publicly traded entities Rule 3: Engagement quality reviewer (EQR) and an assistant to an EQR Rule 4: Assembly and retention of audit documentation IRBA Rules 1‒3 are effective for audits of financial statements for periods beginning on or after 15 December [...]

Guidance for Legal Practitioners The Financial Intelligence Centre has issued Public Compliance Communication 47A (PCC 47A), Guidance on the Interpretation of Legal Practitioners, Item 1 of Schedule 1 to the Financial Intelligence Centre Act (FICA), 2001 (Act No. 38 of 2001) and Potential Risk Indicators. This PCC provides: Guidance on the practical interpretation and application of the definition of legal practitioners as listed in item 1 of Schedule 1 to the FICA. Item 1 includes attorneys practising for their own account; and legal firms; and now includes advocates that practise with a fidelity fund certificate. An overview (with examples) of [...]

REMINDER: Effective Date of the International Standard on Auditing 600 (Revised): Special Considerations – Audits of Group Financial Statements The International Auditing and Assurance Standards Board (IAASB) issued the International Standard on Auditing (ISA) 600 (Revised), Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors), which was adopted, and prescribed by the Board of the Independent Regulatory Board for Auditors (IRBA) on 29 July 2022. ISA 600 (Revised) and the related Conforming and Consequential Amendments to Other International Standards became effective for audits of financial statements for periods beginning on or after 15 December [...]

Final Pronouncement: Technology-related Revisions to the IRBA Code of Professional Conduct for Registered Auditors The IRBA recently issued the Final Pronouncement: Technology-related Revisions to the IRBA Code of Professional Conduct for Registered Auditors, available on: https://www.irba.co.za/guidance-for-ras/ethics:-the-rules-and-the-code/the-irba-code-revised-april-2023 These technology-related revisions will guide the ethical mindset and behaviour of registered auditors as they take advantage of the opportunities that technology is creating, and adapt to new technology. The amendments highlight the importance of professional competence and due care, as well as confidentiality, and address complexity in the context of technology-related developments. The revisions will come into effect as follows: • Revisions [...]

New IFAC & CA ANZ Quality Management Toolkit for Small and Medium-Sized Practices Globally Original CA ANZ Toolkit Modified for International Users The International Federation of Accountants (IFAC) and Chartered Accountants Australia and New Zealand (CA ANZ) has released a quality management toolkit to help small and medium-sized practices (SMPs) implement the International Auditing and Assurance Standards Board’s (IAASB’s) suite of quality management standards. The Quality Management Toolkit for Small- and Medium-Sized Firms and its companion Illustrative Risk Matrix is tailored to individual SMPs to adapt the content to their nature, circumstances and engagements. The toolkit is available on: [...]

IFAC Releases Sustainability Checklist for Small Businesses The IFAC released a Small Business Sustainability Checklist (the Checklist) to help small and medium-sized enterprises maximise the benefits of incorporating sustainability into their strategy and business operations, available on: https://www.ifac.org/about-ifac/small-and-medium-practices/publications/small-business-sustainability-checklist?utm_source=Main+List+New&utm_campaign=0086e8e89a-IFAC-Release-Sustain-list-for-Small-Business&utm_medium=email&utm_term=0_-00b2c170b7-%5BLIST_EMAIL_ID%5D The Checklist lists a comprehensive range of initiatives and actions to be considered, in terms of environmental, social, and governance factors. The Checklist was launched together with an expanded range of external resources to assist practitioners with upskilling and building knowledge in this emerging area. IFAC has prepared a dedicated web page that provides material on sustainability reporting, advisory, assurance, and [...]

Final Pronouncement: Revisions to the Definitions of Listed Entity and Public Interest Entity in the IRBA Code In October 2023, the Independent Regulatory Board for Auditors (IRBA) approved the Revisions to the Definitions of Listed Entity and Public Interest Entity (PIE) in the IRBA Code of Professional Conduct for Registered Auditors (IRBA Code) for prescription and use by registered auditors. A Board Notice to the same effect will be published in the Government Gazette. The revisions are available on: https://www.irba.co.za/guidance-for-ras/ethics:-the-rules-and-the-code/the-irba-code-revised-april-2023 These revisions comprehensively revise the definitions, approach, categories and thresholds applicable to these entities, and will impact many engagement [...]

Audit Quality Indicators Survey Report Shows Commitment to Transparency and Continuous Improvements The 2023 Audit Quality Indicators (AQIs) Survey Report reflects on a year that has shown some progress in the auditing profession in South Africa. The report indicates that, in relation to the relevant quality indicators, firms have stayed on course in their commitment to transparency and continuous improvement. The report presents an analysis of over a dozen AQIs, including firm tenure, the proportion of non-audit fees relative to the total audit fees and training hours. In the period under review, encouraging trends were observed in these areas, [...]