IRBA Newsletter Issue 54

Issue 54 | April-June 2021 17 an opportunity to commence with an early remediation of the IRBA-reported deficiencies, to allow for immediate remediation or correction on the subsequent files signed off by the firms. It is anticipated that through this process the IRBA will be able to provide further insights to relevant stakeholders on the remediation steps taken by the audit firm, and whether those steps are appropriate, in light of the deficiencies initially reported, thereby addressing the risk of repeat deficiencies. This initiative will be introduced on a voluntary basis in the latter part of the first year of this inspections cycle, with full implementation anticipated as the cycle progresses. c. Enhanced Business Intelligence Function The Business Intelligence function has been enhanced by the appointment of additional capacity and centralisation within the IRBA’s Executive office to enhance intelligence gathering and risk-scanning capabilities. Additionally, the IRBA’s digital transformation journey is expected to automate some of the manual environmental scanning and make information gathering more efficient. Furthermore, the IRBA’s strategy to increase collaboration with other regulators is expected to further refine the risk process. d. Theme-based Inspections There are two types of inspections that are performed: firm- wide inspections and individual assurance engagement inspections. Inspections are performed over three-year cycles. The inspections process is regularly updated in response to changes in the environment, which includes but is not limited to, new international standards of accounting and auditing, changes in relevant legislation as well as trends identified in the political and economic landscape. In the figure below we present key aspects and tasks of the inspections process. INSPECTIONS cont.