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I NVEST I GAT I ONS c o n t .

requirements of an assignment, carefully, thoroughly and on a

timely basis.” Auditors are therefore advised to conduct their

taxation services with caution, be mindful of SARS deadlines

and communicate sufficiently and timeously with clients who

have incurred or whomight incur interest and penalties.

RegistrationwithCIPC as Company Secretary

In the CompaniesAct of 1973, Section 275(3) allowed auditors

of private companies to perform secretarial duties, if all

shareholders agreed to this in writing. As a result, numerous

auditors of private companies went so far as to have their

clients register the auditor/audit firm as the company secretary

at CIPC.

However, with the introduction of the CompaniesAct of 2008, it

is imperative that those auditors ensure that their clients

update their CIPC records and remove the name of the

auditor/audit firm as the company secretary because this is

now prohibited, among other things, by Section 90(2) of the

CompaniesAct of 2008.

verification certificate, which contained material errors,

together with an unmodified assurance conclusion.

The respondent was sentenced to a fine of R60,000, of which

R30,000 has been suspended for three years on condition that

the respondent is not found guilty of unprofessional conduct

committed during the period of suspension, no costs order and

publication in general terms.

Matter 15

– With respect to two unrelated clients, the

respondent prepared incorrect B-BBEE scores and status

levels on behalf of those clients in that the relevant sector

codes were not applied by the respondent. The respondent

then issued the B-BBEE verification certificates, both of which

contained material errors. In addition, the respondent did not

include the prescribed content for certificates as set out in

SASAE 3502.

The respondent was sentenced to a fine of R40,000, of which

R20,000 has been suspended for three years on condition that

the respondent is not found guilty of unprofessional conduct

committed during the period of suspension, no costs order and

publication in general terms.

Three matters were referred to the Legal Department for

disciplinary hearings.

Use of the IRBALogo

We continue to find that auditors are making use of the IRBA

logo on B-BBEE verification certificates. Please note that the

IRBA does not permit the use of its logo by anyone. Refer to

pages 7-14 in the

Manual of Information

for more details on

this matter.

Increase in TaxMatters Referred for Investigation

We have identified that there is an increase in the number of

tax matters referred for investigation. These matters mainly

relate to late submissions, which result in interest and

penalties being incurred by clients without their knowledge. In

this regard, we draw your attention to paragraph 130.4 of the

Code of Professional Conduct which states: “Diligence

encompasses the responsibility to act in accordance with the

Decisions to charge and matters referred to disciplinary

hearing

1 5

Issue 33 January - March 2016

Jillian Bailey

Director Investigations

Telephone: (087) 940-8800

E-mail:

investigations@irba.co.za