|Education, Training & Professional Development|
|B-BBEE Verification Assurance|
|Small & Medium-Sized Practices|
|Anti Money Laundering|
For many years the results from engagement inspections (file reviews) have been based on re-review criteria. Re-review criteria were used to progressively improve the content and quality of audit working papers as prepared by practitioners.
In the first review cycle, documented tests of the balance sheet and balance sheet line items formed the base for considering whether adequate working papers existed to justify the audit opinion, while the criteria for the second review cycle was increased to include tests of transactions, planning and completion. The third review cycle introduced the concept of sufficient, appropriate and adequate working papers and 15 items were pre-determined to measure the quality of audit working papers.
The introduction of the firm inspection has resulted in examining audit working papers and other documentation against the full scope of the auditing standards and as a result the use of pre-determined re-review criteria has become obsolete.
The Inspections Committee has therefore decided that from the middle of 2010 all engagement and firm inspections will be based on the full scope of the Auditing, Accounting and Quality Control Standards, effective at the time of inspections.
The result is that all issues of insufficient, inadequate or inappropriate documentation found in audit working papers by the inspectors of the IRBA are to be judged against those standards and submitted to the Inspection Committee with the appropriate recommendation regarding the action to be taken to correct such shortcomings.
The results of inspections (firm and engagement) are now evaluated as follows:
Referral to the investigating committee
The recommendation by the inspectors to the Inspection Committee will now be one of the above with an indication of the steps to be taken by the Inspections Department to ensure corrective action is taken by the firms and the individual practitioners, whichever is applicable.
The recommendation can vary from:
These follow-up visits can be scheduled immediately or within the 12 months following the original inspection.
Paul van Helden