9 / 24
9
COntinued
standards
The Joint IRBA/AGSA Guide
Guidance for Registered Auditors:
Performing Audits where the AGSA
has opted not to Perform the Audit
(Joint Guide) was considered by the
CFAS at its meeting in March 2014 to
recommend to the Board to approve
for issue. The Joint Guide was
prepared by the PSSC, comprising
representatives of large, medium and
small audit practices and the Auditor-
General South Africa (AGSA).
The Joint Guide provides information
that will assist registered auditors
when performing regulatory
audit engagements, including the
audit of the financial statements,
predetermined objectives, and
compliance with laws and regulations
for section 4.3 public sector entities,
which the AGSA has opted not to
audit, in accordance with the specific
requirements of the Public Audit Act
(PAA). It addresses the following
matters:
•
The roles and responsibilities
of the audit firm and the
appointment and discharge, of
audit firms;
•
The auditing standards that are to
be complied with and technical
consultation process;
•
Communication between the
auditor, the AGSA, the auditee,
the executive authority and
oversight bodies; and
•
Reporting.
Joint IRBA/AGSA Guide for
Registered Auditors: Guidance on
Performing Audits on Behalf of
the AGSA
The
Joint IRBA/AGSA Guide
Guidance for Registered Auditors:
Guidance on Performing Audits on
Behalf of the AGSA
(Joint Guide)
was considered by the CFAS at
its meeting in March 2014 to
recommend to the Board to approve
for issue jointly with the AGSA. The
Joint Guide was prepared by the
PSSC, comprising representatives
of large, medium and small audit
practices and the AGSA.
The Joint Guide provides information
that will assist registered auditors
to perform regularity audit
engagements, including the
audit of the financial statements,
predetermined objectives and
compliance with laws and
regulations, on behalf of the AGSA,
in conformance with the AGSA’s
specific requirements and the
requirements of the PAA. It addresses
the following matters:
•
The roles and responsibilities of
the audit firm and the AGSA,
including the supervision and
review responsibilities;
•
The auditing standards and
ethical requirements that are to
be complied with;
•
Communication between the
auditor, the AGSA, the auditee,
the executive authority and
oversight bodies;
•
Technical consultations and
difference-of-opinion processes;
and
•
Reporting.
The PSSC has played an important
role in facilitating the development
of useful guidance for registered
auditors engaged in public sector
audits. This relationship between
the CFAS and the AGSA is unique
and we believe will contribute
to enhancing audit quality and
reporting on public sector financial
statements, governance and
accountability.
We thank those firms who submitted
comments on the proposed Joint
Guides. All comments received have
been considered and final changes
made were considered by the CFAS
at its meeting in March 2014 and
were recommended to the Board
to approve for issue jointly
with the AGSA.
CFAS Sustainability
Standing Committee (SSC)
The SSC has developed an
illustrative auditor’s assurance report
and related engagement letter
that may be used by registered
auditors for sustainability assurance
engagements. These were considered
by the CFAS at its meeting in
March 2014 and approved for issue.
CFAS B-BBEE assurance
matters
Uncertainty regarding the
amended Broad-Based Black
Economic Empowerment (B-BBEE)
Codes of Good Practice
We draw attention to the IRBA
communiqué issued on
13 December 2013 regarding
the caution to be exercised by
B-BBEE approved registered
auditors and registered auditors
(RAs) when considering issuing
B-BBEE Verification Certificates and
Exempted Micro Enterprise (EME)
Certificates under the Amended
Codes of Good Practice on B-BBEE
as gazetted on 11 October 2013
(Codes of 2013).
RAs are also reminded that the
amended Statement 000 in the Code
of 2013 stipulates that only a sworn
affidavit by an EME is required.
It makes no provision for the
issuing of EME certificates.