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STANDARDS c o n t .
ISA 610 (Revised 2013),
Using the Work of Internal
Auditors:
The use of direct assistance by internal audit to
an external auditor
The Board has now determined that the use of “direct
assistance” will be permitted in SouthAfrica. External auditors
who make use of “direct assistance” provided by internal
auditors should be alert to the extensive Requirements and
Application Material in the grey shaded paragraphs in ISA610
(Revised 2013),
Using the Work of Internal Auditors
. Auditors
are also reminded that the engagement partner still takes full
responsibility for the engagement. Where direct assistance by
internal audit is used, compliance with the ISA 610
requirements will be subject to inspections of engagement
files by the IRBA.
The effective date for the grey shaded sections of ISA 610
(Revised 2013), for audits of financial statements for periods
ending on or after 15 December 2014 remains applicable, with
early adoption permissible.
will be issued during the first quarter of 2015. It is expected that
the new and revised ISAs will be effective for audits of financial
statements for periods beginning on or after 15 December
2015.
Once the new and revised ISAs have been issued by the
IAASB, the IRBA will communicate its strategy on how it will
respond to these changes to auditor reporting.
CFAS Regulated Industries and Reports Standing
Committee (RIRSC)
The IAASBAuditor Reporting Project update
This is presently the main project on the IAASB agenda, and
will have broad implications on the work of the Registered
Auditor. The IAASB issued an exposure draft,
Reporting on
Audited Financial Statements:
Proposed New and Revised
International Standards onAuditing (ISAs)
during 2013.
The proposed new and revised ISAs are as follows:
?
Proposed ISA 700 (Revised),
Forming an Opinion and
Reporting on Financial Statements;
?
Proposed ISA 701,
Communicating Key Audit Matters in
the Independent Auditor’s Report;
?
Proposed ISA 260 (Revised),
Communication with Those
Charged with Governance;
?
Proposed ISA570 (Revised),
Going Concern;
?
Proposed ISA705 (Revised),
Modifications to the Opinion
in
the Independent Auditor’s Report;
and
?
Proposed ISA 706 (Revised),
Emphasis of Matter
Paragraphs and Other Matter Paragraphs in the
Independent Auditor’s Report.
It is anticipated that the IAASB, after considering the
comments on the exposure drafts, will approve the new and
revised ISAs at their September 2014 meeting and that they
CFAS Public Sector StandingCommittee (PSSC)
Joint IRBA/AGSA Guide for Registered Auditors:
Guidance for Registered Auditors: Performing Audits
where theAGSAhas Opted not to Perform theAudit
The Joint IRBA/AGSA
Guide, Guidance for Registered
Auditors: Performing Audits where the AGSA has opted not to
Perform the Audit
(Joint Guide) was approved by the Board to
issue at itsmeeting held inMay 2014.
The Joint Guide provides information that will assist RAs 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 requirements of The Public Audit Act
(PAA).
Joint IRBA/AGSA Guide for Registered Auditors:
Guidance on PerformingAudits onBehalf of theAGSA
The Joint IRBA/AGSA
Guide, Guidance for Registered
Auditors: Guidance for Registered Auditors: Guidance on
Performing Audits on Behalf of the AGSA
(Joint Guide) was
approved by the Board to issue at its meeting held in May
2014.
The Joint Guide provides information that will assist RAs 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 theAGSA’s specific requirements and the
requirements of the PAA.
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Issue 26 April - June 2014