IRBA Newsletter Issue 52

Issue 52 | October-December 2020 4 STANDARDS LIST OF TOPICS COVERED IN THIS ISSUE • Standards: o Committee for Auditing Standards Strategy 2020- 2024. o Approved Projects to Commence. o IRBA Board Adopts International Standard on Auditing 315 (Revised): Identifying and Assessing the Risks of Material Misstatement. o IRBA Board Adopts International Standard on Related Services 4400 (Revised): Agreed-Upon Procedures Engagements. o The IAASB Issues Conforming Amendments to the International Standards as a Result of the Revised IESBA Code and the IRBA Issues Updated Illustrative Auditor’s Reports Following These Conforming Amendments. o Global Consultation on Fraud and Going Concern in an Audit of Financial Statements: Exploring the Differences Between Public Perceptions About the Role of the Auditor and the Auditor’s Responsibilities in a Financial Statement Audit. o IAASB Projects in Progress. • Ethics: o Revisions to Part 4B of the IRBA Code to Reflect Terms and Concepts Used in International Standard on Assurance Engagements 3000 (Revised). o IESBA Stakeholder Input on Key Ethical Questions Arising from Technological Developments. o AICPA, IESBA and IAASB Staff Jointly Issue Guidance on Important Considerations Regarding the Use of Specialists in the COVID-19 Environment. o IESBA Projects in Progress. COMMITTEE FOR AUDITING STANDARDS (CFAS) CFAS Strategy 2020-2024 The committee recently finalised its strategy for 2020-2024, and this will inform its work programme. The strategy is available in a PDF format and may be downloaded from the IRBA website by clicking here . The CFAS remains committed to hearing about and engaging on emerging issues and trends. Stakeholders are encouraged to share comments and suggestions regarding emerging trends to the Standards Department for consideration in future updates of the CFAS Strategy, and to inform the future work programme. Approved Projects to Commence At its meeting held in November 2020, the CFAS approved the following projects for its 2020/2021 work programme: • Data Protection. • Quality Management Standards – Local Laws & Regulations. • System of Quality Management Transitional Guidance. • Conforming Amendment to CFAS Pronouncements: Quality Management Standards. • Auditor’s Report Disclosures. • ISA Plus. • Conforming Amendments – ISRS 4400. • Regulation 46 Banking Industry Reports. • Debt Collectors. The CFAS decides to take on projects using a prioritisation process that takes into account factors such as public interest, the regulator impacted, the number of auditors impacted and the nature of legislative changes. IRBA BOARD ADOPTS INTERNATIONAL STANDARD ON AUDITING 315 (REVISED): IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT The International Auditing and Assurance Standards Board (IAASB) issued International Standard on Auditing (ISA) 315 (Revised), Identifying and Assessing the Risks of Material Misstatement (ISA 315 (Revised 2019)) on 19 December 2019. Subsequently, at its meeting on 29 October 2020, the Board of the IRBA approved ISA 315 (Revised 2019) for adoption, issue and prescription for use by auditors in South Africa. The approval includes Conforming and Consequential Amendments to Other International Standards. The changes in substance between extant ISA 315 and ISA 315 (Revised 2019) are that in finalising ISA 315 (Revised 2019), the IAASB focused on the understandability, complexity and length of the standard, and made enhancements and clarifications to encourage a more consistent and robust risk assessment, which forms the foundation of the auditor’s efforts to gather sufficient appropriate audit evidence. In addition, the revisions modernise the standard to keep up with the evolving environment in which businesses operate, particularly in relation to technology, and focus on why procedures are required. Subsequently, related conforming amendments have been made to the following ISAs: • ISA 200, Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing; • ISA 210, Agreeing the Terms of Audit Engagements; • ISA 230, Audit Documentation; • ISA 240, The Auditor’s Responsibilities Relating to Fraud in an