IRBA NEWSLETTER ISSUE 47

Issue 47 | July - September 2019 5 STANDARDS cont. support materials. It contains links to useful materials and will continue to be updated. Please visit the ISA 540 (Revised) Implementation project page regularly to check whether any new implementation support has been issued by the ISA 540 (Revised) Implementation Working Group. Engagements on Legal Practitioners’ Trust Accounts Work is progressing on the revision of the Revised Guide for Registered Auditors: Engagements on Legal Practitioners’ Trust Accounts (the proposed Revised Guide). The proposed Revised Guide will be updated for: • The Legal Practice Act, No. 28 of 2014 (LPA), that replaced the Attorneys Act 53 of 1979 in its entirety; • The South African Legal Practice Council Rules made under the authority of Sections 95(1), 95(3) and 109(2) of the LPA that replaced the Uniform Rules; and • Other issues identified by the Task Group. The plan is to issue the proposed Revised Guide on exposure during the latter part of this year. Illustrative Auditor’s Report for Engagements on the Compliance of the Attorneys’ Trust Accounts with the Attorneys Act and the Rules for the Attorneys’ Profession, as well as the Legal Practice Act and Legal Practice Council Rules Registered auditors’ attention is drawn to the illustrative reasonable assurance auditor’s report issued by the Legal Practice Council (LPC) for use by registered auditors (auditors) when reporting on attorneys’ trust accounts. Auditors are alerted to the fact that the IRBA’s CFAS was not involved in developing and approving this illustrative auditor’s report for use by auditors. The LPA was enacted on 22 September 2014 (Government Gazette No. 38022). With the exception of certain chapters of the Act, the LPA was implemented on 1 November 2018 (Government Gazette No. 42003) and it replaced the Attorneys Act 53, 1979 (the AA), in its entirety (with some exclusions). The final South African LPC Rules, made under the authority of Sections 95(1), 95(3) and 109(2) of the LPA, were gazetted on 20 July 2018 (Government Gazette No. 41781). The implementation of the LPA and the LPC Rules on 1 November 2018 has resulted in auditors having two sets of criteria against which to evaluate the underlying subject matter. These criteria are the AA and the Rules for the Attorneys’ Profession (Uniform Rules), up to 31 October 2018, and the LPA and the LPC Rules from 1 November 2018 to the relevant year-end. As a transitional arrangement, the LPC has issued the illustrative reasonable assurance auditor’s report, which requires the auditor to report on compliance with the related sections of both the AA and the Uniform Rules, as well as the LPA and the LPC Rules for their respective periods. The illustrative auditor’s report is available in PDF format and may be downloaded from the LPC website . CFAS REGULATED INDUSTRIES AND REPORTS STANDING COMMITTEE (RIRSC) Minor Editorial Amendments Made Post-Issue to the South African Auditing Practice Statement (SAAPS) 3 (Revised May 2019), Illustrative Reports The CFAS approved the issue of the South African Auditing Practice Statement (SAAPS) 3 (Revised May 2019), Illustrative Reports, (SAAPS 3 (Revised May 2019)), for use by auditors in May 2019. SAAPS 3 (Revised May 2019) was issued on 30 May 2019. Then the Secretariat was alerted to minor errors in illustrative auditor’s reports 15 and 16 contained in SAAPS 3 (Revised May 2019). The errors were corrected, and the updated version of the SAAPS was uploaded to the IRBA website on 3 June 2019. Auditors are urged to check that they are using the version that is on the website. This SAAPS is available in PDF and Word formats, and may be downloaded from the IRBA website. CFAS PUBLIC SECTOR STANDING COMMITTEE (PSSC) Guide for Registered Auditors: Auditing in the Public Sector (Revised August 2019) The CFAS, at its meeting on 21 August 2019, approved the issue of the Guide for Registered Auditors: Auditing in the Public Sector (Revised August 2019) (this Revised Guide) for use by auditors. This Revised Guide was approved by the CFAS for joint publication with the Auditor-General of South Africa (AGSA) to help improve the understanding and enhance the performance of quality public sector audits by auditors in public practice (registered with the IRBA), who are contracted by the AGSA or appointed as auditors of public institutions where the AGSA has opted not to perform the audit, in accordance with Section 4(3) and 4(3A) of the Public Audit Act, 2004 (Act No. 25 of 2004) (PAA). Section 12(3)(a) of the PAA requires the AGSA to determine “the minimum qualifications, experience and competence for authorised auditors”. Auditors performing public sector engagements have to ensure that they have the professional competence to perform such audit engagements in accordance with the applicable professional standards, additional extensive legal and regulatory requirements as well as the unique circumstances of the public sector. The guidance herein is intended to assist auditors to meet these requirements. This Revised Guide has been updated for the following: • Changes made to the AGSA’s audit methodology; • Guidance on interaction with political governance structures in the public sector;