IRBA NEWSLETTER ISSUE 47

Issue 47 | July - September 2019 7 ETHICS COMMITTEE FOR AUDITOR ETHICS (CFAE) Proposed Amendments to the IRBA Code of Professional Conduct Relating toRegisteredCandidate Auditors The CFAE approved the issuing of the proposed amendments to the IRBA Code of Professional Conduct for Registered Auditors (Revised November 2018) (IRBA Code) relating to registered candidate auditors on exposure in August 2019 for public comment by 31 October 2019. In accordance with the provisions of Section 10(1)(a) of the Auditing Profession Act, 2005 (Act No. 26 of 2005) (the Act), the IRBA may, by notice in the Government Gazette and pursuant to the provisions of Section 4(1)(c) of the Act, publish, for public information and comment, an amendment to the IRBA Code. Accordingly, Board Notice 158 of 2019 was published in the Government Gazette No. 42684 for public comment for a minimum period of 30 days. Proposed Amendments In 2015, amendments to the Auditing Profession Act (Act 26 of 2005) resulted in the regulation of registered candidate auditors through the Audit Development Programme (ADP). At the commencement of the ADP, registered candidate auditors acknowledge their obligation to comply with the IRBA Code. The IRBA Code addresses the definition and role of a registered auditor, and this includes both the individual and the firm. It, however, does not specifically address the role and definition of a registered candidate auditor. Therefore, these amendments seek to provide clarity on the application of the IRBA Code to registered candidate auditors. Proposed Effective Date The expectation is that the CFAE will deliberate on the comments received on the proposed amendments to the IRBA Code relating to registered candidate auditors in February 2020 and then consider recommending these amendments to the IRBA Board for approval in June 2020. The expectation is that these proposed amendments will be effective on or after 1 November 2020. Request for Comments The CFAE welcomes comments on all matters addressed in the proposed amendments to the IRBA Code relating to registered candidate auditors, especially those identified in the Request for Specific Comments section of the Explanatory Memorandum. The IRBA invites registered candidate auditors, registered auditors and other interested parties to submit any comments regarding the proposed amendments to the IRBA Code relating to registered candidate auditors to the IRBA by 31 October 2019. Comments, in Word format, should be submitted by email to standards@irba. co.za . All comments will be considered a matter of public record. A copy of the exposure draft is available in PDF format and may be downloaded from the exposure drafts page on the IRBA website. INTERNATIONAL ETHICS STANDARDS BOARD FOR ACCOUNTANTS (IESBA) IESBA Proposes Changes to Promote Role andMindset Expectations of Professional Accountants The IESBA released, for public comment, the Exposure Draft, Proposed Revisions to Promote the Role and Mindset Expected of Professional Accountants, on 31 July 2019. The Exposure Draft puts forward changes that further strengthen the International Code of Ethics for Professional Accountants (including International Independence Standards) (the IESBA Code) to promote the role and mindset expected of all professional accountants. The proposed revisions respond to stakeholder calls for the IESBA to explore whether and how the Code could contribute to strengthening the application of concepts underlying professional scepticism by all professional accountants. Among other matters, the proposals: • Highlight professional accountants’ wide-ranging role in society and the relationship between compliance with the IESBA Code and a professional accountant’s responsibility to act in the public interest; • Include enhancements to the robustness of the fundamental principles of integrity, objectivity and professional behaviour; • Further strengthen the IESBA Code through requiring professional accountants to have an inquiring mind when applying the conceptual framework; and • Highlight the importance of being aware of bias and having the right organisational culture. The IRBA Code adopted the IESBA Code, issued during 2018, together with South African enhancements. As all amendments to the IRBA Code are in line with the IESBA Code, the expectation is that these IESBA Code amendments will be incorporated into the IRBA Code. In accordance with the provisions of Section 10(1)(a) of the Auditing Profession Act, the IRBA may, by notice in the Government Gazette and pursuant to the provisions of Section 4(1)(c) of the Act, publish, for public information and comment, an amendment to the IRBA Code. Accordingly, Board Notice 160 of 2019 to the same effect was published in the Government Gazette No. 42684 for public comment for a minimum period of 30 days. Comments to the IESBA close on 31 October 2019. IESBA Launches the eCode The IESBA released its eCode, a web-based tool that delivers the IESBA Code on a digital platform, on 26 June 2019. This tool includes “app-like” features and functionalities, such