opinion due to the fact that the annual financial statements
were approved later than six months from the year end.
?
No documented going concern considerations and
conclusions.
Compliance with the CompaniesAct
?
Non-compliance with Section 90(2) of the Companies Act.
Audit firms or network firms prepare or assist with the
preparation of the annual financial statements for
companies subject to mandatory audits. This is a serious
contravention and results in immediate referral for
investigation.
Recommendation
Firms and practitioners are encouraged to analyse the
aforementioned deficiencies, and if applicable, incorporate
sustainable solutions into their processes for continuous
improvement. Most of the examples listed above are directly
as a result of the following:
?
Insufficient and/or inappropriate audit evidence
documented to support the audit opinion.
?
Failure to identify and assess material misstatements in the
financial statements.
?
Not all firms are familiar with the strict independence
requirements imposed by Section 90(2) of the Companies
Act and the joint Guide and FAQs issued by the IRBA and
SAICA. (Also refer to ‘From the CEO’s Desk’ for an update
on the Guidance.)
I NSPECT I ONS c o n t .
Imre Nagy
Director: Inspections
Telephone: 087 940 8800
Fax:
087 940 8874
E-mail:
1 5
Issue 28 October 2014 - March 2015
