IRBA NEWSLETTER ISSUE 47

Issue 47 | July - September 2019 16 EDUCATION & TRANSFORMATION THE AUDIT DEVELOPMENT PROGRAMME The Role of the Firm and the Oversight Registered Auditor As the eligibility to join the Audit Development Programme (ADP) was discussed in the previous issue, in this issue the focus is on the role of the firm and the oversight registered auditor (ORA) in the successful completion of the programme. The firm RA firms that offer registered candidate auditors (RCAs) the opportunity to register on the ADP must fulfil the following responsibilities: - Provide an environment that is conducive to the development, enhancement and demonstration of professional competence. - Ensure that each RCA is provided sufficient and appropriate support during the ADP. - Foster a commitment to lifelong learning and skills development. - Encourage RCAs to become involved in work that challenges their skills in a variety of contexts. - Promote and foster the ethics, values, independence and objectivity of the RA profession. - Offer progression of work to increasing levels of complexity, independence and accountability. All RA firms are required to be ISQC 1 compliant. In this regard, all registered RA firms are required to have systems for quality control. Such systems have to include leadership, ethics, human resources and engagement performance, among others. Compliance with ISQC 1 creates the context for the development and assessment of professional competence. The oversight registered auditor The RA firm must ensure that each RCA is assigned to an ORA, who oversees, on behalf of the firm, the development of the RCA’s competence in auditing. The firm identifies the ORA. The ORA must be an RA who has been registered with the IRBA for a minimum of three years – though the IRBA may relax this requirement on a case-by-case basis. In addition, the ORA should have sufficient seniority in the firm to provide meaningful input into the development of the RCA’s professional competence. Responsibilities of the ORA The ORA will work with the RCA to create an environment that provides the candidate with the quality and range of experience to enhance and develop professional capabilities, skills and values to a level appropriate for registration with the IRBA. This will include providing opportunities for the RCA to assume a managerial function within the auditing department of the firm; leading a team of trainee accountants and other assistants in the proper execution of the audit; as well as building and managing the engagement relationships, where appropriate, with representatives of the client at a senior level of management, including those charged with governance and relevant third parties. The ORA is also responsible for, inter alia, the following: - Oversight over the co-ordination of performance appraisal information and any other relevant information on the candidate’s performance and competence. - Reflection, interpretation and assessment of the candidate’s progress. - Consultation based on the information presented in the performance appraisal reports with both the candidate and the line managers, direct supervisors and any other relevant individuals. - Regular and meaningful feedback on the development of the candidate’s professional competence, including reviews of the six-monthly reports and the portfolio of evidence. - A signed declaration (on completion of the ADP) that confirms, among others, that the candidate has developed his/her professional competence to a level that is appropriate for registration with the IRBA. The signed declaration also indicates that the ORA is satisfied with the portfolio of evidence submitted. The completion of and signatures on the registration form by both the ORA and the RCA represent consent to the requirements of and responsibilities entailed in the ADP. For further information and to register a prospective candidate on the programme, please refer to the IRBA website . The IRBA also regularly hosts ADP workshops around the country. If you are interested in hosting a workshop at your firm, please contact adpadmin@irba.co.za . Successful completion of the programme The candidates listed in the table below completed the ADP during the period July-September 2019. Altaaf Arshad Motala Andri Booyens Christiaan Hoon Desire Nyoni Johann Reinhard Sieberhagen Monique Cunha Navasha Moodley Sebastian Santana To these candidates, we wish you all the success in your roles within the profession. We would also like to extend our gratitude to the candidates’ ORAs and their firms for their commitment and contribution to the success of these candidates.