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Issue 35 | July-September 2016

7

Illustrative Report for External Auditors as Required

by the South African Reserve Bank Exchange Control

Circular 6/2010 Relating to the Macro-Prudential

Foreign Exposure Limit Return

The CFAS has approved the issue of the Illustrative South African

Reserve Bank (SARB) Assurance Reports on the Macro-Prudential

Foreign Exposure Limit Return (illustrative reports) for use by

registered auditors of authorised dealers with year-ends on or after

31 December 2016.

In terms of Section B.2(I)(xiii) of the Currency and Exchanges

Manual for Authorised Dealers, the external auditor of an authorised

dealer is required to report to the SARB on the last submitted

Macro-Prudential Foreign Exposure Limit Return at year-end.

The assurance reports must be submitted to the SARB Financial

Surveillance Department within a maximum period of six months

after the financial year-end.

Illustrative Assurance Reports A and B

Using the IAASB standards for the engagement, Illustrative Reports

A and B have been developed to report on the Currency and

Exchanges Manual for Authorised Dealers as follows:

• Part A: ISRE 2410; and

• Part B: ISAE 3000 (Revised).

The illustrative reports are available in both PDF and Word formats

and may be downloaded from the

IRBA website.

Revised Illustrative Reports Used by Registered

Auditors When Required to Report in Terms of the

Financial Markets Act, No. 19 of 2012, and JSE Directive

DG 1.7

Regarding Johannesburg Stock Exchange (JSE) stockbrokers,

the CFAS approved the issue of the Revised Illustrative JSE

Stockbrokers’ Auditor Reports for use by registered auditors when

reporting in terms of the Financial Markets Act, No. 19 of 2012, and

the JSE Directive DG 1.7 for stockbrokers with year-ends on or after

31 December 2016 as follows:

• Illustrative regulatory reports 2A, 2B, 3; and

• Illustrative regulatory reports 4-5.

In terms of the Financial Markets Act, the JSE Rules and the JSE

Directives, the external auditor of a stockbroker is required to report

to the JSE on various regulatory matters.

In terms of JSE Directive 1.7.1 of the Financial Markets Act, the

revised illustrative reports have been rendered in accordance with

the wording and practices agreed from time to time between the

JSE Market Regulation Department and the IRBA.

Illustrative Regulatory Reports 2A, 2B and 3

Using the IAASB standards for the engagements, illustrative reports

2A, 2B and 3 have been developed to report on the stockbrokers

as follows:

• Part 2A: ISRE 2410;

• Part 2B: ISRS 4400; and

• Part 3: ISRS 4400.

Illustrative Regulatory Reports 4-5

Illustrative reports 4-5, which represent a non-assurance

engagement, fall outside the IAASB standards. The CFAS has

concluded that the provisions of paragraph 20 of the International

Framework for Assurance Engagements (Framework) have been

adhered to when developing illustrative reports 4-5 in that these

reports do not imply compliance with the Framework or with

assurance standards. They also do not inappropriately use the

words “assurance”, “audit” or “review”.

The illustrative reports are available in both PDF and Word formats

and may be downloaded from the

IRBA website.

Illustrative South African Reserve Bank (SARB) Banks Act

Regulatory Auditor’s Reports

The CFAS approved the issue of the illustrative SARB Banks Act

regulatory auditor’s reports on the Banks Act Returns (illustrative

reports) for use by registered auditors for banks with year-ends on

or after 31 December 2015 as follows:

• Illustrative regulatory reports A-H; and

• Illustrative regulatory reports I-J.

In terms of Regulations 39, 40 and 46 of the Banks Act (No. 94

of 1990), the external auditor of a bank is required to report to the

SARB on various regulatory matters.

In terms of Regulation 46(6) of the Banks Act, the illustrative reports

have been rendered in accordance with the wording and practices

agreed from time to time between the Registrar of Banks, SAICA

and the IRBA.

Illustrative Regulatory Reports A-H

Using the IAASB standards for the engagement, illustrative reports

A-H have been developed to report on the Banks Act Returns as

follows:

• Part A: ISA 800;

• Part B: ISRE 2410;

• Part C: ISAE 3000 (Revised);

• Part D: ISAE 3000 (Revised);

• Part E: ISAE 3000 (Revised);

• Part F: ISA 800; ISRE 2410 and ISAE 3000 (Revised);

• Part G: ISRS 4400; and

• Part H: ISRS 4400.

Illustrative Regulatory Reports I-J

Illustrative reports I-J,which represent anon-assuranceengagement,

fall outside the IAASB standards. The CFAS has concluded that

the provisions of paragraph 20 of the International Framework for

Assurance Engagements (Framework) have been adhered to when

developing illustrative reports I-J in that these reports do not imply

compliance with the Framework or with assurance standards.

STANDARDS c o n t .