IFAC Releases Instalment Two in Small Firm Implementation Support Series on IAASB Quality Management Standards The International Federation of Accountants (IFAC) has released the second instalment in a three-part publication series to help small and medium-sized practices implement the International Auditing and Assurance Standards Board’s (IAASB) quality management standards. Instalment Two: Developing a Detailed Implementation Plan provides a step-by-step approach to identifying quality objectives; completing the quality risk assessment process; identifying existing, or creating new responses to those quality risks; and implementing, documenting and communicating the system of quality management. Instalment Two is available on the following link: Go to Link [...]

IESBA Emphasises the Critical Importance of Ethical Behaviour for All Professional Accountants Recent events in a number of major jurisdictions involving professional accountants have raised concerns with many stakeholders and the public about accountants’ conduct. A number of these events have resulted in adverse consequences for the professional accountants or their firms, and undermined public trust in the accountancy profession. Among all professions, the global accountancy profession is set apart by having the comprehensive and robust International Ethics Standards Board for Accountants’ (IESBA’s) International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code), available on: Go to Link [...]

Joint APESB and IESBA Guidance on Application of IESBA Code To assist professional accountants with ethically navigating the challenges and opportunities brought by rapid advances in technology, the staff of the Australian Accounting Professional & Ethical Standards Board (APESB) and the staff of the International Ethics Standards Board for Accountants (IESBA) jointly released Applying the Code's Conceptual Framework to Independence: Practical Guidance for Auditors In Technology-related Scenarios, available on: Go to Link The publication describes key technology-related provisions of the IESBA Code, as well as providing auditors with three practical examples involving technology-related non-assurance services as illustration. Learn more [...]

Updates to IRBA Pronouncements Arising from Narrow-Scope Amendments to IAS 1 – SAAPS 3 and other Illustrative Reports The Independent Regulatory Board for Auditors (IRBA) previously published a communiqué on guidance issued by the International Auditing and Assurance Standards Board (IAASB) on narrow-scope amendments to International Accounting Standard (IAS) 1, Presentation of Financial Statements. The narrow-scope amendments to IAS 1 require preparers that use the International Financial Reporting Standards (IFRS) to disclose their ‘material accounting policy information’, instead of ‘a summary of significant accounting policies’. These changes to IAS 1 became effective for annual reporting periods beginning on or [...]

Revisions to the IRBA Code of Professional Conduct (Revised April 2023) The Independent Regulatory Board for Auditors (IRBA) has announced revisions in the IRBA Code of Professional Conduct for Registered Auditors (Revised April 2023) (IRBA Code) related to the Final Pronouncement: Definition of Engagement Team and Group Audits. These revisions holistically address independence considerations in an audit of group financial statements and other implications of the changes made to the definition of an engagement team. They are effective for audits and reviews of financial statements, and audits of group financial statements for periods beginning on or after 15 December 2023. [...]

Minister of Finance Publishes Maximum Monetary Fines On 15 June 2023, the Minister of Finance, Enoch Godongwana, gazetted the Maximum Monetary Fines, in terms of Sections 51(2) and 51B(3)(b) of the Auditing Profession Act 26 of 2005 (as amended in 2021), which empowers the Minister to set maximum monetary sanctions. These are the maximum fine limits, and they are not fixed. The maximum fine that the Enforcement Committee may impose on an individual auditor who concludes an admission of guilt process, is now set at R5 million, while it is R15 million for an audit firm. Where the Enforcement [...]

New guidance for delivering greenhouse gas reporting New guidance to help professional accountants and finance professionals deliver robust greenhouse gas (GHG) reporting has been released by the International Federation of Accountants (IFAC) and We Mean Business Coalition (WMBC), in partnership with Accounting for Sustainability (A4S), Global Accounting Alliance (GAA) and World Business Council for Sustainable Development (WBCSD). The guidance is a response to the rapidly escalating impact of climate change, and emerging mandatory requirements that companies disclose robust information about their GHG emissions, and climate risks and opportunities to help investors allocate capital to the ‘greenest’ companies. The first [...]

MAFR Supreme Court of Appeal Judgment The IRBA received the Supreme Court of Appeal judgment on 31 May 2023, setting aside the Mandatory Audit Firm Rotation (MAFR) rule. The IRBA respects the judgment and appreciate that the outcome is based on a technical legal interpretation which should not bring into question the value and/or effectiveness of MAFR. While it is no longer mandatory to comply with MAFR, independence of registered auditors from their clients is a key principle of effective external audits and, in addition to the rotation of partners every five years, the IRBA is of the view that rotation of [...]

SAICA Anti-Money Laundering Portal Launched SAICA has announced that its Anti-Money Laundering (AML) Portal is live and accessible to all SAICA members. This online platform provides valuable information and resources on AML practices, and a wide range of content, including guidance documents, regulatory updates, industry news, and access to recordings of seminars. It is available on: https://www.saica.org.za/anti-money-laundering-aml The issue of AML has become increasingly critical in today’s global financial landscape, and it is imperative that professionals in the accounting and auditing fields remain well informed and equipped in this regard. The Financial Action Task Force has identified significant shortcomings in South [...]

IFAC, TI-UK, and WEF’s PACI Review of Anti-Corruption Reporting Published At a time when companies, investors, and financial markets are calling for increased transparency and accountability for anti-corruption efforts, the International Federation of Accountants (IFAC), Transparency International UK (TI-UK) and the World Economic Forum’s (WEF’s) Partnering Against Corruption Initiative (the Forum’s PACI) has published a comprehensive review of anti-corruption corporate reporting by the largest publicly traded companies worldwide. The report decodes the current state of anti-corruption reporting practices and highlights the urgent need for enhanced quality, reliability, and comparability in this crucial area. It also raises a series of policy [...]