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NewDirector: Standards

Sandy van Esch, Director: Standards, retired at the end of May

2014, having spent most of her working life contributing and

strengthening the profession through lecturing, auditing and

standard setting. Sandy has been succeeded by Imran

Vanker. Please refer to the General News section for more on

Sandy’s career and farewell.

Sandy’s team would like to thank her on a personal level for

her incredible dedication to the team, and for inculcating a

passion for audit in each of us.

Ciara, Nicki, Yussuf, Saadiya, Anne, Ian and Retsi

Email addresses for queries

A reminder to use the following email addresses:

All Reportable Irregularity related emails to:

All ethics-related queries to:

All B-BEE-related queries to:

All other standards-related queries to: a

Committee forAuditing Standards (CFAS)

Frequently Asked Questions on the Guide for Registered


Engagements onAttorneys Trust Accounts

The Guide for Registered Auditors:

Engagements on

Attorneys Trust Accounts

(the Guide) was issued on 28

February 2014. In response to some Frequently Asked

Questions, a communique was issued which provides clarity



The effective date of theGuide:

The Guide applies to all engagements on attorneys trust

accounts and the related auditor's reports issued

subsequent to 1March 2014.


The status of the SAICAGuide:

The SAICAGuide has been withdrawn.


The reason why Registered Auditors (RAs) need to

apply theGuide:

RAs are referred to the

Status and Authority of Quality

Control, Auditing, Review, Other Assurance, and Related

Services Pronouncements

, wherein it states:

"In terms of section 1 of the Auditing Profession Act, No

26 of 2005 (the Act), a Guide is included in the definition

of "auditing pronouncements" and in terms of the Act, the

auditor must, in the performance of an audit, comply with

those standards, practice statements, guidelines and

circulars developed, adopted, issued or prescribed by the

Regulatory Board".

All RAs undertaking such engagements must apply the

guidance in the Guide to meet the requirements of the

applicable Rules of the Provincial Law Societies and in

order to be able to issue the new format of auditor's report

(Appendices 4 and 5).


Auditing of the attorneys’ financial statements

(business accounts)

Paragraph 25 of the Guide clarifies this and states:

"There is no requirement in the Act or the Rules for an

attorney's financial statements to be audited. Such

requirement may emanate from another Act, such as the

Companies Act. However, an auditor is required by the

Rules to undertake an engagement on the compliance of

attorneys trust accounts with the Act and the Rules,

whether or not an audit is conducted on the financial



Reportable Irregularities

Where an auditor has reason to believe a reportable

irregularity has occurred or exists, by reason of that

auditor's access to the attorney's business accounts, in

the course of the auditor's engagement on the attorneys

trust accounts, although the auditor is not appointed to

audit the financial statements of the attorney, the

obligation to report to the IRBA still arises. An auditor's

responsibility is clarified in paragraphs 24, 26 and 27 of the



Signing of the Attorney's Annual Statement on Trust


It has been asked if all the partners of the attorneys' firm

are required to sign the Attorney's Annual Statement on

Trust Accounts. This is a decision that each attorney's firm

will need to make as it represents an acknowledgment

that each attorney in that firm has complied with the

relevant Provincial Law Societies' Rules. The attorney's

firm may decide to delegate this responsibility to certain

partners or may require all partners to sign.


Issue 26 April - June 2014