IRBA Newsletter 27

6 / 18

STANDARDS c o n t .
Illustrative Report of Factual Findings for the Department
of Trade and Industry's (DTI) Section 12I Tax Allowance
Programme
The illustrative report of factual findings was approved for
issue by the CFAS at its meeting held in August 2014. The
report is to accompany the annual progress report submitted
to the DTI for the Section 12I Tax Allowance Incentive
Programme. The objective of the Tax Allowance Incentive
Programme is to support Greenfield investments (new
industrial projects that utilise only new and unused
manufacturing assets – minimum investment of R200 million)
and Brownfield investments (manufacturing expansions or
upgrades – minimum investment of R30 million). The
incentive programme supports both capital investment and
training. The report is available in both PDF and Word format
and may be downloaded from both the IRBA and the DTI
websites.
Act, 2003.
Where a Sector Code has been gazetted under Section 9(1)
and has become effective, then it will be applied to all
measured entities that are identified within that particular
industry from the date of becoming effective. The statement
of clarificationmay be viewed at the following link:
StatementofClarification.pdf
?Issuing Exempt Micro Enterprise (EME) certificates under
the amended 2013 Codes of Good Practice (amended
CoGP2013)
BARs commonly misapply the DTI directive regarding the
issuing of certificates under the amended CoGP 2013. In
terms of Government Gazette No. 36928, issued 11 October
2013, Code Series 000, Statement 000, paragraph 10,
expressly states that measured entities may apply the
amended CoGP2013 during the transitional period.
Measured entities, as defined (qualifying small enterprises
and generics), are entities above the R10-million-turnover
threshold. Entities below this threshold only require an
affidavit and therefore do not require measurement under
the amended codes. Thus, BARs should not be issuing
verification certificates to EMEs in terms of the amended
CoGP2013.
?Issuing zero point certificates
Issuing a zero point certificate is factually incorrect because
the BAR has not assessed whether this is an accurate
reflection of themeasured entity's status.
Registered auditors are encouraged to study the guidance
issued by the IRBA, available on the IRBA , and
contact the Standards Department via email at
for assistance regarding B-BBEE
assurancematters.
6 Issue 27 July - September 2014
CFAS Public Sector StandingCommittee (PSSC)
The PSSC finalised the two joint Auditor-General South Africa
(AGSA) and IRBA Guides for Registered Auditors: Guidance
for Registered Auditors: Performing Audits where the AGSA
has Opted not to Perform the Audit and Guidance on
Performing Audits on Behalf of the AGSA in the second
quarter of 2014. These Guides have since been approved by
the Board and are awaiting a joint launch by theAGSAand the
IRBA.
CFASB-BBEEAdvisory Committee (BAC)
Some developments in the field of assurance on Broad-Based
Black Economic Empowerment (B-BBEE) include:
Complaints received on B-BBEE verification certificates
issued by BARs
The IRBA continues to receive complaints regarding
verification certificates that have been issued by B-BBEE
Approved Registered Auditors (BARs). In summary, the
complaints include:
?Certificates issued under the incorrect Sector Code
A statement of clarification was issued by the DTI on 9 July
2012 detailing the process to be followed when determining
whether to apply the Code of Good Practice (CoGP 2007) or
a Sector Code gazetted under Section 9(1) of the B-BBEE
Accounting Standards Board (ASB)
TheASB issued its Discussion Paper 9: Materiality – Reducing
Complexity and Improving Reporting in July 2014. The CFAS
formed a task group in order to submit comments on the
discussion paper by 15 January 2015.
RAs are encouraged to submit comments to the IRBA at
by 7 January 2014 or directly to the
ASB by 15 January 2015.