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News in the LEAF Training Division.

Going concern

2022-06-30T16:02:52+02:00

Newsletter April Significant Risk Assessment Auditors are required to obtain sufficient appropriate audit evidence regarding the appropriateness of management’s use of the going concern basis of accounting in the preparation of the financial statements, and to determine its impact on the audit report. However, results from monitoring reviews point to a significant documentation gap in the audit working papers when it comes to this important assessment, resulting in inadequate support for conclusions drawn and the opinion expressed. Risk assessment procedures and related activities Risk assessment procedures performed during the planning phase of the audit include [...]

Going concern2022-06-30T16:02:52+02:00

Audit Procedures – Related Parties

2022-06-30T16:03:01+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 Parties2022-06-30T16:03:01+02:00

Group audits 3 of 3 – Joint Audits

2022-05-30T16:01:46+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 Audits2022-05-30T16:01:46+02:00

Group audits 2 of 3 – Procedures Excluding Consolidation Procedure

2022-01-24T08:06:29+02:00

Group audits 2 of 3 – Procedures Excluding Consolidation Procedure 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. In the discussion of audit procedures, this article EXCLUDES the consolidation process, and should be read in conjunction with parts 1 and 3 to reach an understanding of group audits as a whole. It addresses key requirements which auditors would be wise to include [...]

Group audits 2 of 3 – Procedures Excluding Consolidation Procedure2022-01-24T08:06:29+02:00

Group Audits 1 of 3 ‒ Consolidations

2022-01-24T08:06:52+02:00

Group Audits 1 of 3 ‒ Consolidations 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 ONLY audit procedures relating to the consolidation process, and needs to be read in conjunction with parts 2 and 3 to reach an understanding of group audits as a whole. Professional requirements The International Standards on Auditing (ISAs) apply to group audits. ISA [...]

Group Audits 1 of 3 ‒ Consolidations2022-01-24T08:06:52+02:00

Data Protection

2021-12-06T12:49:50+02:00

Data Protection Since the onset of the Covid-19 pandemic, many auditors and their clients have been working remotely, resulting in much more client data being exchanged on technological platforms. Not all platforms are secure, which creates a greater threat of data security breaches. The damage caused by data breaches is unpredictable and audit firms may incur considerable losses in this regard. Audit firms should, therefore, take all the necessary steps to protect the data they process, including personal information processed, in terms of the Protection of Personal Information Act, 2013. Professional requirements The International Standard on Quality Control 1 (ISQC [...]

Data Protection2021-12-06T12:49:50+02:00

The Impact of POPIA

2021-09-21T22:12:27+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 POPIA2021-09-21T22:12:27+02:00

Audit of legal practitioners’ business accounts

2021-09-19T17:15:37+02:00

Newsletter June Audit of legal practitioners’ business accounts Audit requirements relating to the business financial statements of legal practitioners practicing in companies have been clarified. In October 2019, the Companies and Intellectual Property Commission (CIPC) issued a notice of the withdrawal of the non-binding opinion pertaining to Regulation 28(2)(a) of the Companies Regulations 2011 to the Companies Act 2008. This opinion applied to legal practitioners who are registered as companies, in terms of the Companies Act, and considered whether the holding of assets in the legal practitioners’ trust accounts is regarded as part of the ordinary [...]

Audit of legal practitioners’ business accounts2021-09-19T17:15:37+02:00

Interest on legal practitioners trust accounts

2021-09-19T17:16:11+02:00

Newsletter May Interest on legal practitioners trust accounts When performing assurance engagements on legal practitioners’ trust accounts, auditors must ensure that they are familiar with all legal and regulatory requirements. When auditors are not fully aware of the latest requirements, misstatements and instances of non-compliance may go undetected. A common area where this may occur is interest earned on trust accounts and paid over to the Legal Practitioners Fidelity Fund (LPFF). This article explains the requirements and what to look out for Types of trust accounts Legal practitioners may operate three different types of trust [...]

Interest on legal practitioners trust accounts2021-09-19T17:16:11+02:00

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