|Education and Transformation|
|B-BBEE Verification Assurance|
|Other Assurance Engagements|
|Small & Medium-Sized Practices|
|Anti Money Laundering|
|Companies Act Section 90(2)|
Johannesburg / 14 June 2012
From 1 April 2012, for all firms categorised as high or special risk (categories A and B), inspections will be billed twice a year based on a percentage of the total audit and other assurance work invoiced by the firm, and declared every calendar year by the firm for each Registered Auditor (RA).
In principle, work in categories A and B will therefore be subject to a three year inspection cycle and billed on a bi-annual basis at a percentage of the total audit fee base declared.
Low risk assurance work (category C) may be inspected on a reactive basis. This means that the IRBA may inspect this work if any information comes to its attention and where it is deemed appropriate or necessary to perform an inspection. These inspections will be billed on a cost per hour recovery basis at a rate prescribed by the IRBA.
Re-inspections under categories A and B will also be billed separately on a cost per hour recovery basis at a rate prescribed by the IRBA. The prescribed fee for the 2012 financial year is R1 285.
The following percentages on the high risk audit fee declared for the financial year 2012 were approved by the Board and published in the Government Gazette:
|Total High Risk Audit Fee Declared Categories||Percentage inspection fee to be charged and payable in two instalments|
|>R500 000 000||0.17%|
|>R50 000 000||0.55%|
|>R30 000 000||0.90%|
|>R15 000 000||1.17%|
|>R4 500 000||1.98%|
The first invoice will be sent by e-mail on 20 June 2012 and posted to the firm's address as per the contact details on our database.
Where firms operated as different legal entities under the same name ('network firms'), the fees were added together and the invoice will only be sent to the main firm.
Bernard Peter Agulhas
Chief Executive Officer
About the IRBA
The objective of the IRBA is to endeavour to protect the financial interests of the South African public and international investors in South Africa through the effective and appropriate regulation of audits conducted by registered auditors, in accordance with internationally recognised standards and processes.