IRBA Newsletter Issue 52

Issue 52 | October-December 2020 9 ETHICS REVISIONS TO PART 4B OF THE IRBA CODE TO REFLECT TERMS AND CONCEPTS USED IN INTERNATIONAL STANDARD ON ASSURANCE ENGAGEMENTS 3000 (REVISED) The IRBA draws the attention of all registered auditors to revisions to Part 4B of the IRBA Code of Professional Conduct for Registered Auditors (Revised November 2018) (IRBA Code). These revisions reflect the terms and concepts used in International Standard on Assurance Engagements 3000 (Revised). The IRBA adopted the amendments made to the International Ethics Standards Board for Accountants’ (IESBA) Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), issued during 2020, following the issue of proposed amendments on exposure for public comment via Government Gazette No. 42464 in South Africa on 17 May 2019 (Board Notice 76 of 2019). The main revisions include: • Changes in key terminology, including a revised definition of the term “assurance client”; • Amendments to certain independence requirements in light of the revised assurance client definition; • Greater clarity as to the parties to an assurance engagement, their roles and responsibilities, and the related independence requirements that apply; and • A clearer distinction between the types of assurance engagement covered in Parts 4A (addressing independence for audit and review engagements) and 4B of the Code. Part 4B relating to independence for assurance engagements with respect to underlying subject matter covering periods will be effective for periods beginning on or after 15 June 2021; otherwise, it will be effective as of 15 June 2021. Early adoption will be permitted. Board Notice 141 of 2020 was published in Government Gazette No. 43962 on 4 December 2020, advising of the publication of the amendments to the IRBA Code, pursuant to the provisions of Section 10(1)(a) of the Auditing Profession Act. The amendments to the IRBA Code may be downloaded from the IRBA website . INTERNATIONAL ETHICS STANDARDS BOARD FOR ACCOUNTANTS (IESBA) IESBA Stakeholder Input on Key Ethical Questions Arising from Technological Developments The IESBA’s Technology Task Force launched two online surveys that sought stakeholder feedback to inform its consideration of issues that are related to its technology work stream. The topics addressed in those two recommendations were: • Technology and complexity in the professional environment ; and • The impact of technology on auditor independence . The views and input were sought from all categories of stakeholders, including investors and other users of financial statements; the corporate governance community; the regulatory and audit oversight community; preparers; firms; national standard setters; professional accountancy organisations; academics; and others. Stakeholder responses to the surveys would help guide the IESBA’s consideration of the next steps, in relation to those two topics, at its December 2020 board meeting. AICPA, IESBA and IAASB Staff Jointly Issue Guidance on Important Considerations Regarding the Use of Specialists in the COVID-19 Environment The staff of the American Institute of Certified Public Accountants, the IESBA and the IAASB jointly released a publication titled Using Specialists in the COVID-19 Environment: Including Considerations for Involving Specialists in Audits of Financial Statements. The publication provides guidance to assist professional accountants in business and in public practice determine when there might be a need to use the services of a specialist to assist in performing specific tasks and other professional activities within their employing organisations, and in serving their clients in the COVID-19 environment. Also, the publication highlights relevant ethical considerations for accountants when thinking about using a specialist, as well as circumstances that indicate a need for a specialist during an audit of financial statements. IESBA Projects in Progress • Non-assurance Services. • Fees. • Definition of PIE and Listed Entity. • Engagement Teams/Group Audits. • Technology. • Tax Planning and related services. • Engagement Quality Reviewer. • Benchmarking Initiative. More information on these projects is available on the IESBA website . Should you have any further queries, please send an email to . Imran Vanker Director Standards Telephone: (087) 940-8838 Fax: (086) 575-6535 E-mail: