FROM THE CEO ’ S DESK
This year is starting with significant changes for our
profession. These changes will see investors getting more
information in their company's audit reports and give them the
necessary assurance when it comes to their investment
decisions.
The new and revised Auditor Reporting Standards issued by
the International Auditing and Assurance Standards Board
(IAASB) on 15 January 2015 are the most significant changes
the profession has seen in the last 20 years. The IRBA
supports these changes and welcomes the fact that the new
standards will give investors more information relating to
audits and the entities being audited.
As with all new standards, the Committee for Auditing
Standards (CFAS) will follow due process in recommending
the new and revised standards for approval by the IRBABoard
before they are implemented. The CFAS will also advise the
Board on the recommended date of implementation. For more
information on the new and revised standards see the
Standards section on page 6.
In the last couple of weeks, I have followed the World
Economic Forum discussions in Davos with great interest,
especially the debates on anti-corruption and how the global
community plans to come together to fight corruption. This
topic reinforced the importance of the role of our profession in
the fight against corruption and what it is that we can do to fight
corruption in our own country.
There is a lot that each one of us can do to improve good
governance and to fight the scourge of corruption. The
auditing profession is best placed to take the lead in this fight
and to turn things around for the good of our country and the
economy.
The IRBA has been receiving a lot of recognition from its
international counterparts to offer assistance in various
capacities in their programmes around the continent. This is
testament to the good work that the IRBAcontinues to do in the
education, technical and inspections spaces. The IRBA's
involvement in international forums continues to allow it to
position itself to contribute towards the growth of the
profession on theAfrican continent.
Our Inspections department continues to enhance
communication with firms by giving feedback on some of the
most common inspections that resulted in unsatisfactory
outcomes, and so demonstrates our belief that the various
stakeholders who have an interest inAudit Quality should work
together to achieve this common objective. Read more of the
inspections findings newsflash on page 14.
The IRBA, together with the South African Institute for
Chartered Accountants (SAICA), responded to auditors'
requests for further guidance and clarification on the
application of Section 90 (2) of the Companies Act, which
deals with the provision of non-audit services by the auditor of
a company. Accordingly, updated guidance will be issued this
month.
The IRBA is excited about the start of the Audit Development
Programme (ADP), which will see the first intake of the
Candidate Registered Auditors (CRA) in March. The ADP
positions the Chartered Accountant as a Specialist
Accountant and the programme equips CRAs with the
required skills and experience to competently perform and
deliver services on which the public and investors can rely.
Readmore on theADPon page 3.
We are pleased that the Minister of Finance facilitated another
meeting in January of all Heads of entities that report to him.
One of the objectives of these meetings is to enhance
communication between these entities and with the Minister,
and thereby further strengthen the impact of national initiatives
and the capacity of the individual state organs.
Communication and engagements must move us forward.
In his budget speech, Minister Nhlanhla Nene alluded to the
tough economic challenges facing our country – and the fact
that we need to intensify efforts to improve the economy. The
strengthening of public institutions such as the IRBA will go a
long way in making markets work better and creating
investment in infrastructure andmore jobs.
So as we proceed with our journey into a brand-new year and
embark on future challenges and embrace new opportunities,
it seems appropriate to approach 2015 with the famous words
of Muhammad Ali: “Don't count the days, make the days
count”.
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Issue 28 October 2014 - March 2015
Bernard Peter Agulhas
Chief Executive Officer
