IRBA Newsletter Issue 52

Issue 52 | October-December 2020 6 STANDARDS cont. REGULATED INDUSTRIESANDREPORTSSTANDING COMMITTEE (RIRSC) 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 IAASB – Conforming Amendments On 9 July 2020, the IRBA communicated that the IAASB had issued conforming amendments to the IAASB International Standards, as a result of the revised International Ethics Standards Board for Accountants’ (IESBA) International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code) effective as of 15 July 2020. The communique also noted that the IRBA’s CFAS had recommended these conforming amendments to the IRBA Board. Subsequently, at its meeting on 29 October 2020, the IRBA Board approved these conforming amendments for adoption, issue and prescription for use by registered auditors in South Africa. These conforming amendments to the IAASB International Standards are limited to changes in response to the revised IESBA Code. They also ensure that the IAASB International Standards can continue to be applied together with the IESBA Code. To download these conforming amendments to the IAASB International Standards, visit the IRBA website . IRBA – Updated Illustrative Auditor’s Reports The IRBA has also issued the updated illustrative auditor’s reports for use by registered auditors. The updates arise from the conforming amendments to the IAASB International Standards. The effect on the illustrative auditor’s reports are as a result of the following amended paragraph in ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements: ISA Paragraph Effect on the Illustrative Auditor’s Report ISA 700 (Revised) Paragraph 40(b) For audits of financial statements of listed entities, state that the auditor provides those charged with governance with a statement that the auditor has complied with relevant ethical requirements regarding independence and communicates with them all relationships and other matters that may reasonably be thought to bear on the auditor’s independence, and where applicable, related safeguards actions taken to eliminate threats or safeguards applied. Auditor’s Responsibilities for the Audit of the Financial Statements … We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards actions taken to eliminate threats or safeguards applied. ISA 800 (Revised), Special Considerations – Audits of Financial Statements Prepared in Accordance With Special Purpose Frameworks ISA 700 (Revised), Paragraph 40(b) For audits of financial statements of listed entities, state that the auditor provides those charged with governance with a statement that the auditor has complied with relevant ethical requirements regarding independence and communicates with them all relationships and other matters that may reasonably be thought to bear on the auditor’s independence, and where applicable, related safeguards actions taken to eliminate threats or safeguards applied. Auditor’s Responsibilities for the Audit of the Financial Statements … We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards actions taken to eliminate threats or safeguards applied.