LATEST UPDATE

Staff Audit Practice Alert 13: Strengthening Public Sector Audits – Identifying and Responding to Public Sector-Specific Risks

The Independent Regulatory Board for Auditors (IRBA) announced the issuing of Staff Audit Practice Alert 13: Strengthening Public Sector Audits: Identifying and Responding to Public Sector-Specific Risks (the Alert), available here.

This Alert provides non-authoritative guidance to registered auditors performing audits of public sector entities in instances where the Auditor-General South Africa (AGSA) has elected not to perform the audit, in terms of Section 4(3) of the Public Audit Act 25 of 2004. It covers matters these auditors may consider when completing their risk assessment processes arising from the public sector environment as part of their audit engagements.

The Alert is based primarily on International Standards on Auditing (ISA) 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement, and the relevant aspects of ISA 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements.

The Alert may also provide useful insights to auditors of private sector entities with relationships with the government.