23 June 2010

The Committee for Auditor Ethics (CFAE) issued the revised Rules Regarding Improper Conduct (the “Rules”) and Code of Professional Conduct for Registered Auditors (the “Code”) which were approved by the Board and published in Board Notice 89 in Government Gazette No 33305 on 18 June 2010. The Code does not restrict the scope of the Act or the Rules Regarding Improper Conduct.

Effective date

The Rules and Code are prescribed by the Board and come into effect from 1 January 2011 in order to allow sufficient time for implementation by Registered Auditors. Transitional provisions at the end of the Code provide for later effective dates for new independence requirements, which are consistent with the effective dates in the International Federation of Accountants’ (IFAC) Code of Ethics for Professional Accountants (the “IESBA Code”) issued by the International Ethics Standards Board for Accountants’ (IESBA) in June 2009.

The revised Rules repeal and replace the Old Disciplinary Rules 2.1 - Improper Conduct and Punishment. Whilst retaining most of the “Old Disciplinary Rules, “new” rules have been added.

The revised Code replaces the existing IRBA Code of Professional Conduct. The Code signals a significant change in the drafting convention followed in the existing IRBA Code. The CFAE has determined it appropriate for South Africa to adopt Parts A and B and the Definitions in the IESBA Code. However, more stringent South African requirements are incorporated into the relevant sections of the Code.

Significant changes to the Code:

The Code now incorporates the conceptual framework for identifying threats to independence and possible safeguards to be applied when accepting and performing an audit or review engagement or any other assurance engagement;
The definition of Professional Services has been expanded;
The detailed sections 290 and 291 provide more specific guidance on threats to independence frequently encountered by auditors in public practice;
The existing joint and vicarious liability section in the existing IRBA Code has been removed pending further research by the CFAE.

The Rules and Code are available in PDF format and may be downloaded from the IRBA website.

Should you have any further queries or experience any technical difficulties in downloading the documents please do not hesitate to contact the Standards Department at +27 (0)87 940 8800 or send an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Sandy van Esch
Director: Standards

About the IRBA

The mandate of the Independent Regulatory Board for Auditors (the IRBA) is to protect the public by regulating audits performed by registered auditors and developing and maintaining internationally comparable ethical and auditing standards for auditors and establishing measures that advance the implementation of appropriate standards of competence and good ethics, that promote investment and and as a consequence employment in South Africa.

The statutory Committee for Auditor Ethics assists the Regulatory Board to determine what constitutes improper conduct by registered auditors by developing rules and guidelines for professional ethics, including a code of professional conduct.

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