IRBA Newsletter Issue 48

Issue 48 | October - December 2019 7 STANDARDS cont. CFAS REGULATED INDUSTRIES AND REPORTS STANDING COMMITTEE (RIRSC) Revised Illustrative Banks Act Regulatory Auditor’s Reports The CFAS approved the issue of the following revised illustrative Banks Act and Mutual Banks Act regulatory auditor’s reports (revised illustrative regulatory reports) for use by registered auditors (auditors) for banks with year-ends on or after 31 December 2019: • South African and Consolidated Operations – revised illustrative regulatory reports A-I; • Foreign Operations (BA 610 returns) – revised illustrative regulatory reports A-H; and • Mutual Banks Act (MBA) reports – revised illustrative regulatory reports A-F. In terms of Regulation 46(6) of the Banks Act, the revised illustrative reports have been rendered in accordance with the wording and practices that the Prudential Authority, the South African Institute of Chartered Accountants (SAICA) and the IRBA agree to from time to time. The revised illustrative regulatory reports are available in both PDF and Word formats and may be downloaded from the IRBA website . Performance of Engagements and Preparation of Reports that Do Not Comply with the International Auditing and Assurance Standards Board’s Standards and IRBA Pronouncements Clients, on behalf of third parties such as government departments, regulatory bodies, banks or attorneys, may require registered auditors to perform engagements and prepare reports that do not comply with the IAASB’s Standards and IRBA pronouncements, leading them to fall outside the scope of these Standards. We draw registered auditors’ attention to the SAICA Guide on Considering the International Standards to be used for Audits, Reviews, Other Assurance, and Related Services Engagements, issued in July 2017. It provides guidance to assist practitioners with deciding whether the engagement falls within the scope of the Standards that are currently effective. The Guide also assists practitioners to determine which Standard(s) applies in a particular case, considering a practitioner may receive numerous and varied requests to enter into an engagement to provide or issue a report, or to sign a standard format report or certificate from clients or prospective clients. It is advisable for the practitioner to consult with the firm’s risk management and/or technical department before accepting engagements that fall outside the scope of the Standards. This consultation is necessary as such engagements may not meet the needs of users, and may expose all parties to risks and unmatched expectations. It is further advised that should the practitioner decide to accept an engagement that is outside the scope of the Standards, care should be taken by the registered auditor to ensure that any report issued does not contain wording that could create the impression or imply that an engagement has been performed in accordance with the Standards and relevant ethical requirements. CFAS SUSTAINABILITY STANDING COMMITTEE (SSC) Reminder: IRBA Seeks Feedback on Implementing SAAEPS 1 Practitioners are reminded that the IRBA seeks feedback on the implementation of the South African Assurance Engagements Practice Statement (SAAEPS) 1, Sustainability Assurance Engagements: Rational Purpose, Appropriateness of Underlying Subject Matter and Suitability of Criteria (SAAEPS 1), by 15 December 2019. An initial call for feedback was issued on 26 June 2019 . Effective Date SAAEPS 1 is effective for the Acceptance and Continuance - Preconditions for the Assurance Engagement phase of the sustainability assurance engagement for reporting periods beginning on or after 15 December 2020. Early adoption is permitted. Two years were provided to allow time for practitioners to prepare for and implement the guidance, receive training and provide feedback to the IRBA on any implementation lessons. This timeframe also allows preparers of sustainability reports to receive training on the content of SAAEPS 1, as it relates to them. Providing Feedback on Implementing SAAEPS 1 Should you have any comments on implementing SAAEPS 1, please contact the Standards Department by email at standards@ irba.co.za . INTERNATIONAL AUDIT AND ASSURANCE STANDARDS BOARD The IAASB Issues an Exposure Draft on Conforming Amendments to the IAASB’s International Standards as a Result of the Revised IESBA Code The IAASB is requesting public comments on its Exposure Draft, Conforming Amendments to the IAASB’s International Standards as a Result of the Revised IESBA Code . The exposure draft focuses on conforming amendments to the IAASB’s International Standards (the International Standards) that are as a result of the revised International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code). The project aims to align the IAASB’s International Standards with the revisions to the IESBA Code by way of conforming amendments, thus ensuring that the IAASB’s International Standards can continue to be applied together with the IESBA Code. The International Standards refer to the IESBA Code in various