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In this issue the following topics are discussed:

New and revisedAuditor Reporting Standards


New and revisedAuditor Reporting Standards.


ISA 720 (Revised) and auditor focus on “other



Revised auditing standards on disclosures.


IFRS 9: Financial Instruments.


Proposed Guide for Registered Auditors: Reporting

Responsibilities of the Reporting Accountant Related to

Property Entities in Terms of the JSE Listings



Proposed SAAPS 3 (Revised 2015) on Illustrative Reports.


Updates on BEE verification assurance relatedmatters.


Proposed ISA810 (Revised) on Engagements to Report on

Summary Financial Statements.


Responding to Non-Compliance or Suspected Non-

Compliance with Laws and Regulations: Proposed

Amendments to the IAASB's International Standards.


Withdrawal of reports.


Warnings on pronouncements issued.


Statistics on reportable irregularities.

The Council for Medical Schemes (the CMS) is the first

regulator in South Africa to require auditors of medical

schemes to report on key audit matters (KAMs) in their audit

reports on medical schemes' financial statements for the year

ending 31 December 2016 and onwards. There are several

benefits to regulators mandating the disclosure of KAMs in

auditor reports. Some of these are to:


Enhance communication between auditors and investors,

as well as those charged with corporate governance.


Increase user confidence in audit reports and financial



Increase transparency, audit quality and enhanced

information value.


Increase attention by management and financial statement

preparers to disclosures referencing the auditor's report.


Renew auditor focus on matters to be reported that could

result in an increase in professional scepticism.


Enhance financial reporting in the public interest.

Circular 65 of 2015, Auditor's Reports: Key Audit Matters,

which introduces this requirement, is on the CMSwebsite



Practitioners are reminded that the new standards are

effective for audits of financial statements for periods ending

on or after 15 December 2016. Resources on the new and

revisedAuditor Reporting Standards are available on the IRBA




standards) and the IAASB


auditors-report) websites.

Standards Department staff has published an article in the

December 2015 edition of the

Accountancy SA

magazine. The

article addresses questions such as: What are the main

changes in relation to the scope and auditor's work effort?

What will be communicated in the auditor's report about other

information? What are the newly introduced documentation

requirements? Auditors are alerted to this article for insight to

this important topic as in recent years the detail included in

entities' annual reports as well as other corporate and external

reports, besides the audited financial statements and the

auditor's report, has changed significantly.

ISA 720 (Revised), The Auditor's Responsibilities Relating to

Other Information, is available on the IRBA website




An overview of the revised standard, At a Glance: ISA 720

(Revised), The Auditor's Responsibilities Relating to Other

Information, is available on the IAASB website



The IRBA Board adopts the IAASB's Addressing

Disclosures in the Audit of Financial Statements –

Revised International Standards on Auditing (ISAs) and

Related ConformingAmendments

The IRBA Board has approved the following revised ISAs for

adoption, issue and prescription by registered auditors in


ISA 720 (Revised) – Auditor focus on “other information”

included in annual reports

RevisedAuditing Standards onDisclosures

Issue 32 October - December 2015