Finalised Disciplinary and Investigation Matters

In the latest issue of IRBA News, Issue 66, two finalised disciplinary matters and 23 finalised investigation matters were reported.

In one disciplinary matter, no audit procedures were performed on the group financial statements’ consolidation process and related risks; considerations relating to the presentation of the financial statements and compliance with the financial reporting framework were not documented; documented evidence of the engagement quality reviewer’s involvement in matters requiring significant audit attention was not present; the existence of underlying assets used for testing were not verified; and the audit file was not archived on time. The second matter was related to an inappropriate audit opinion issued, due to material misstatements in the client’s financial statements, and failure to assemble the audit file.

In several investigation matters, sufficient appropriate audit evidence was not obtained for material balances and disclosures, and material misstatements were not appropriately evaluated and addressed. In others, sufficient appropriate audit evidence was not obtained regarding compliance with laws and regulations, and independence threats were not identified, evaluated and responded to appropriately.

Issue 66 of IRBA News may be accessed on the following link:
https://www.irba.co.za/upload/IRBA%20News%20Issue%2066.pdf