auditing Archives - Leaf Quality Systems (Pty) Ltd

Data Protection
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Data Protection

LEAF Quality Systems (Pty) Ltd2021-12-06T12:49:50+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 ProtectionLEAF Quality Systems (Pty) Ltd2021-12-06T12:49:50+02:00

Preparing for ISA 315 (Revised 2019)
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Preparing for ISA 315 (Revised 2019)

LEAF Quality Systems (Pty) Ltd2021-12-06T12:40:19+02:00

Preparing for ISA 315 (Revised 2019) Many auditors assume that ISA 315 (Revised 2019) is, in most instances, the same as the existing standard, which is not the case. This new standard, which comes into effect for audits of financial statements for periods beginning on or after 15 December 2021, not only expands on concepts in the existing standards, but also introduces new concepts in the risk assessment process. New concepts, such as ‘relevant assertions’ and ‘significant classes of transactions, account balances or disclosures’, explain the way auditors should consider and respond to the risk of material misstatement. It is critical [...]

Preparing for ISA 315 (Revised 2019)LEAF Quality Systems (Pty) Ltd2021-12-06T12:40:19+02:00

Audit of legal practitioners’ business accounts
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Audit of legal practitioners’ business accounts

LEAF Quality Systems (Pty) Ltd2021-09-19T17:15:37+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 accountsLEAF Quality Systems (Pty) Ltd2021-09-19T17:15:37+02:00

Interest on legal practitioners trust accounts
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Interest on legal practitioners trust accounts

LEAF Quality Systems (Pty) Ltd2023-01-20T07:13:36+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 accountsLEAF Quality Systems (Pty) Ltd2023-01-20T07:13:36+02:00

Significant Risk Assessment
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Significant Risk Assessment

LEAF Quality Systems (Pty) Ltd2021-09-19T17:16:27+02:00

Newsletter April Significant Risk Assessment Risk assessment is a crucial step during any audit, and involves a great deal of judgment by the auditor, especially when it comes to determining which of the risks identified are significant. Many auditors grapple with this, and end up simply including the presumed significant risks of revenue recognition and management override of controls, per ISA 315 and 240, instead of truly applying their mind to the circumstances of each audit client and adequately justifying the risk assessment on file. This article attempts to break this important assessment down into simple [...]

Significant Risk AssessmentLEAF Quality Systems (Pty) Ltd2021-09-19T17:16:27+02:00

ISQM 1
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ISQM 1

LEAF Quality Systems (Pty) Ltd2021-09-19T17:16:47+02:00

Newsletter March 2021 - ISQM 1 Since the new quality management standards were issued in December 2020, they have been the topic of several communications on social media and other platforms. The main questions on everyone’s mind are: ‘What are the changes?’ ‘What do we need to do?’ and, ‘By when should it be done?’ This article attempts to address these burning questions to set your mind at ease. Changes introduced by ISQM 1 The current International Standard on Quality Control (ISQC) 1, which addresses firms’ systems of quality control, is replaced by the International [...]

ISQM 1LEAF Quality Systems (Pty) Ltd2021-09-19T17:16:47+02:00

Auditing of Compliance with Financial Reporting Frameworks – The Presentation Assertion
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Auditing of Compliance with Financial Reporting Frameworks – The Presentation Assertion

LEAF Quality Systems (Pty) Ltd2021-02-22T13:59:41+02:00

Auditing of Compliance with Financial Reporting Frameworks – the Presentation Assertion Audit regulators are reporting that financial statement disclosure deficiencies have increased substantially over the past few years. It is crucial for auditors to realise that they need to have a sound understanding of the financial reporting framework applied by the entity and perform thorough audit procedures to determine whether the financial reporting framework has been correctly applied. This does not merely require the completion of a disclosure checklist, but also the verification of recognition and measurement, in terms of the financial reporting framework and reporting responsibilities placed [...]

Auditing of Compliance with Financial Reporting Frameworks – The Presentation AssertionLEAF Quality Systems (Pty) Ltd2021-02-22T13:59:41+02:00

Estate Agents
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Estate Agents

LEAF Quality Systems (Pty) Ltd2019-07-25T09:07:36+02:00

Estate Agents Estate Agents Estate agent trust accounts pose various challenges to auditors, which may easily result in an audit file failing inspections. The Financial Intelligence Centre Amendment Act, 2017 (FIC Amendment Act) introduced important changes to be aware of, while auditors sometimes still have to contend with existing Estate Agency Affairs Board (EAAB) requirements and online audit report submissions. This article aims to guide auditors and highlight significant areas. Amendments to FIC requirements The FIC Amendment Act became effective in [...]

Estate AgentsLEAF Quality Systems (Pty) Ltd2019-07-25T09:07:36+02:00