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Issue 35 | July-September 2016


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.

In addition, SAICA has set up a task group to update these reports

for recent changes to the Regulations relating to banks as well

as to update the ISA 800 reports as a result of the issue of ISA

800 (Revised) that is effective for audits of financial statements for

periods ending on or after 15 December 2016.

Sustainability Standing Committee Project

– Assurance

Concepts: Evaluating the Suitability of Criteria and the

Acceptability of Subject Matter in an Assurance Engagement

Other Than Audits or Reviews of Historical Financial


The Sustainability Standing Committee has established a task

group to develop guidance for registered auditors in evaluating the

suitability of criteria and the acceptability of subject matter in an

assurance engagement other than audits or reviews of historical

financial information.

IAASB Projects

IAASB’s Work Plan for 2017-2018 and Continuing Relevance

of Its Strategic Objectives

The IAASB recently released a survey consultation, The IAASB’s

Work Plan for 2017-2018 and Continuing Relevance of Its Strategic

Objectives. Feedback to this consultation will assist the IAASB in

evaluating its priorities for 2017-2018 and allocating its resources.

The survey was open for responses by 30 September 2016. The

survey is available on the

IAASB website.

IAASB’s Data Analytics Project

The IAASB’s Data Analytics Working Group has released a Request

for Input, Exploring the Growing Use of Technology in the Audit,

with a Focus on Data Analytics. The request is available on the

IAASB website.


Invitation to Comment, Enhancing Audit Quality

in the Public Interest: A Focus on Professional Skepticism,

Quality Control and Group Audits (ITC)

As referred to in the previous edition of the


, the

comment period to respond to the IAASB ITC ended on 16 May

2016. The ITC dealt with the following three important topics:

• Professional scepticism;

• Quality control; and

• Group audits.

Eighty-seven responses to the ITC were received from a range

of stakeholders, including 11 (largely investors and analysts) who

responded to the Overview of the ITC.

The IAASB has established working groups that have analysed the

responses to the ITC and are in the process of deciding on a way

forward to address these three important topics.

IAASB’s Projects in Progress

The IAASB’s projects in progress are:

• Accounting estimates (ISA 540);

• Quality Control (ISQC 1 and ISA 220);

• Group Audits (ISA 600);

• Professional scepticism;

• Auditor risk assessments (ISA 315 (Revised));

• Responding to non-compliance with laws and regulations


• Assurance on integrated reporting;

• New auditor reporting implementation;

• Agreed-upon procedures (ISRS 4400); and

• Data analytics.

More information on these projects is available on the IAASB website.

Small and Medium-Sized Practices

At the IRBA Roadshows, registered auditors from the small and

medium practices (SMPs) sector expressed interest in resources

and/or tools that are aimed at the small and medium-sized entity

(SME) market. In response to these requests, the IRBA has prepared

a list of SME resources developed by the International Federation of

Accountants (IFAC).

The IFAC’s SMP Committee represents the interests of professional

accountants in the SMP sector. The committee develops guidance

and tools, and works to ensure that the needs of the SMP and SME

sectors are considered by standard setters and regulators.

SMPs may find the publications listed below useful in running their

practices and in the audit of SMEs.

These publications have not been issued as guidance in South

Africa as they have not gone through the IAASB’s due process

for development of International Standards. The guidance may,

however, be of use to SMPs, bearing in mind that registered auditors

are required to apply the International Standard on Quality Control

(ISQC) 1 and the IAASB International Standards. Those standards

also provide, in certain circumstances, for the perspectives of the

audit of SMEs to be considered.



Implementation Guidance

Companion Manual: Guide to Quality

Control for SMPs/Guide to Using ISAs

in the Audits of SMEs/Guide to Review

Engagements/Guide to Compilation


21 October 2015

Guide to Compilation Engagements

24 September 2015

Guide to Review Engagements

10 December 2013

STANDARDS c o n t .