LEAF Technical Archives - Leaf Quality Systems (Pty) Ltd

Investments in Associates
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Investments in Associates

LEAF Quality Systems (Pty) Ltd2023-04-03T16:30:46+02:00

Investments in Associates When considering, during an audit, whether investments have been correctly accounted for, in terms of the relevant accounting framework, it is important to know whether the entity is required to compile consolidated financial statements. This can make a difference when determining whether the accounting policy applied for investments in associates is appropriate based on the accounting framework. IFRS for SMEs International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) Section 14, Investments in associates, indicates that its requirements apply to accounting for associates in consolidated financial statements, and in [...]

Investments in AssociatesLEAF Quality Systems (Pty) Ltd2023-04-03T16:30:46+02:00

Evaluating the System of Quality Management
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Evaluating the System of Quality Management

LEAF Quality Systems (Pty) Ltd2023-01-31T22:14:20+02:00

Evaluating the system of quality management In the past year, firms have been making a significant effort to update their systems of quality management and start implementing the new risk-based standards of managing quality. Throughout this coming year, firms will perform the first round of monitoring to determine whether they are complying with their updated systems. The final step of implementing the new standards must not be overlooked, namely evaluating the system of quality management. Evaluating the system The individual or individuals carrying the ultimate responsibility and accountability for the system of quality management, normally [...]

Evaluating the System of Quality ManagementLEAF Quality Systems (Pty) Ltd2023-01-31T22:14:20+02:00

Monitoring and remediation
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Monitoring and remediation

LEAF Quality Systems (Pty) Ltd2023-01-31T22:11:04+02:00

Monitoring and Remediation Many auditors underestimate the value of regular and robust monitoring of their systems of quality management, followed by focused remediation. If monitoring and remediation is performed correctly, the firm’s system of quality management is bolstered, which results in improved quality of engagements, and improved staff competence and morale. This, in turn, boosts profitability and client confidence. The evaluation of deficiencies needs to be brutally honest, however, so that the root cause of deficiencies may be properly addressed. Firm-level considerations The firm’s monitoring and remediation process must provide relevant, reliable and timely information [...]

Monitoring and remediationLEAF Quality Systems (Pty) Ltd2023-01-31T22:11:04+02:00

Engagement performance
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Engagement performance

LEAF Quality Systems (Pty) Ltd2023-01-31T22:11:14+02:00

Engagement Performance One of the root causes of negative regulatory inspection findings is the lack of appropriate involvement by engagement partners on engagements. There are also many instances where audit documentation does not reflect the application of appropriate levels of professional scepticism when auditing and exercising professional judgment. The new quality management standards place increased emphasis on these important aspects to achieve the appropriate level of engagement quality. Firm-level considerations ISQM 1 para 31 requires firms to establish quality objectives that address the performance of quality engagements, including the following: a. Engagement teams understand and fulfil [...]

Engagement performanceLEAF Quality Systems (Pty) Ltd2023-01-31T22:11:14+02:00

Resources, information and communication
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Resources, information and communication

LEAF Quality Systems (Pty) Ltd2023-01-31T22:11:24+02:00

Newsletter April Significant Risk Assessment When considering whether appropriate resources are available to perform engagements, practitioners have traditionally only considered human resources available within the firm. The new quality management standards expand on this, however, by requiring firms to also consider the technological and intellectual resources available. Firms should also consider whether appropriate resources are available to maintain their quality management system; they should establish an information system to support the operation of their quality management system, and ensure that the necessary communication takes place internally and externally. Firm-level considerations ISQM 1 para 32 requires [...]

Resources, information and communicationLEAF Quality Systems (Pty) Ltd2023-01-31T22:11:24+02:00

Ethics, acceptance and continuance
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Ethics, acceptance and continuance

LEAF Quality Systems (Pty) Ltd2023-01-31T22:11:43+02:00

Ethics, acceptance and continuance 30 September 2022 Ethics is a fundamental concept that needs to be established in an auditing and accounting practice. It cannot merely be given lip service, and should lead to proactively managing the risk of ethical threats and breaches that could inappropriately influence the firm’s compliance with relevant ethical requirements. One of the occasions when ethics may be involved in audit considerations is when deciding whether to accept, or continue with client relationships and engagements. Quality, integrity and independence should be the overriding factors. Firm-level considerations ISQM 1 para 29 [...]

Ethics, acceptance and continuanceLEAF Quality Systems (Pty) Ltd2023-01-31T22:11:43+02:00

Audit Procedures – Related Parties
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Audit Procedures – Related Parties

LEAF Quality Systems (Pty) Ltd2022-06-30T16:03:01+02:00

Audit procedures - Related Parties In certain sections of our monthly newsletters, we may address audit procedures to provide guidance in a format that provides easy reference on engagements. The guidance provided is not exhaustive, and is intended to share observations from real cases of deficiencies on engagement files. Background Over the years, Related Parties has developed as a section of the audit that requires detailed attention. As the required procedures have been modified over time, I believe that the real objective of testing related parties has become unclear. Dependent on the risk and circumstances [...]

Audit Procedures – Related PartiesLEAF Quality Systems (Pty) Ltd2022-06-30T16:03:01+02:00

Improving Audit Quality
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Improving Audit Quality

LEAF Quality Systems (Pty) Ltd2022-05-30T16:01:59+02:00

Improving Audit Quality Annually, audit firms invest vast quantities of blood, sweat and tears in delivering quality auditing and related services to their clients. Yet, audit regulators still report many common audit quality deficiencies in their annual inspections reports, most of which are repeat findings. It is important to root out the causes to make lasting improvements to audit quality, which, in turn, will lead to efficient and profitable firms. Firm-level deficiencies – quality system Firm-wide deficiencies reported on by audit regulators mainly revolve around firm leadership, engagement performance and independence issues. While some improvements have [...]

Improving Audit QualityLEAF Quality Systems (Pty) Ltd2022-05-30T16:01:59+02:00

Group audits 3 of 3 – Joint Audits
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Group audits 3 of 3 – Joint Audits

Jannie Dannhauser2022-05-30T16:01:46+02:00

Group audits 3 of 3 – Joint Audits Group audits represent some of the most risky audits to undertake, as most public interest audits comprise the audit of groups of companies. However, the standards and audit principles relevant to group audits do not always receive the detailed attention they deserve, This article addresses audit procedures relating to joint audit engagements, which are often relevant to group audits, and should be read in conjunction with parts 1 and 2 to reach an understanding of group audits as a whole. It addresses key requirements which auditors would be wise [...]

Group audits 3 of 3 – Joint AuditsJannie Dannhauser2022-05-30T16:01:46+02:00

The Impact of POPIA
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The Impact of POPIA

LEAF Quality Systems (Pty) Ltd2021-09-21T22:12:27+02:00

The Impact of POPIA The Protection of Personal Information Act, 2013 (Act No. 4 of 2013), otherwise known as POPIA, came into effect on 1 July 2020. Responsible parties were granted a grace period of 12 months to ensure compliance with POPIA by 30 June 2021. This means that responsible parties must be able to prove compliance from 1 July 2021. The Information Regulator of South Africa may not yet be fully geared for monitoring compliance on a regular basis, but the regulator will investigate, if any claims are lodged against responsible parties. The consequences for non-compliance are significant. [...]

The Impact of POPIALEAF Quality Systems (Pty) Ltd2021-09-21T22:12:27+02:00

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