STANDARDS
New andRevisedAuditor Reporting Standards
Adoption of the IAASB's 2014 Handbooks
The International Auditing and Assurance Standards Board
(IAASB) issued a suite of new and revised auditor reporting
standards on 15 January 2015:
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ISA 700 (Revised),
Forming an Opinion and Reporting on
Financial Statements;
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ISA 701,
Communicating Key Audit Matters in the
Independent Auditor's Report;
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ISA 260 (Revised),
Communication with Those Charged
with Governance;
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ISA570 (Revised),
Going Concern;
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ISA 705 (Revised),
Modifications to the Opinion in the
Independent Auditor's Report;
and
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ISA 706 (Revised),
Emphasis of Matter Paragraphs and
Other Matter Paragraphs in the Independent Auditor's
Report.
Registered auditors are reminded that the Committee for
Auditing Standards (CFAS) is required to follow due process,
which entails recommending the new and revised standards to
the IRBA Board for approval to adopt for use by registered
auditors. Once adopted by the IRBA Board, the new and
revised ISAs will be effective for audits of financial statements
for periods ending on or after 15 December 2016.
The Standards Department is launching an
Auditor
Reporting Awareness Programme
, addressing
stakeholders through targeted initiatives. Stakeholders
identified are registered auditors (JSE-accredited auditors for
Key Audit Matters), users of auditor reports (investors,
directors and regulators), preparers and students (CTA level).
Details on the initiatives will be communicated to relevant
stakeholders.
The IRBA adopted, issued and prescribed the
Handbook of
International Quality Control, Auditing, Review, Other
Assurance, and Related Services Pronouncements, 2014
Edition Volumes I, II and III
in Board Notice 143 of 2014
included in Government Gazette 38263 of 5 December 2014.
The 2014 Board Notice and PDF formats of the 2014 IAASB
Handbooks, Volumes I, II and III, are available for download
from the Auditing Standards section of the IRBA website at
The IRBAauditing pronouncements are also published by The
South African Institute of Chartered Accountants (SAICA) in
the Auditing Handbook included with their annual Members
Handbooks.
Prescribed Auditor Reports for Medical Schemes and
Proposed Guide for Registered Auditors: Engagements
on the Annual Financial Statements and Annual Statutory
Returns of aMedical Scheme
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The Council for Medical Schemes (CMS) published the
prescribed auditor report templates
effective for the 2014
financial year, on 27 November 2014. These statutory
auditor reports have been developed by the CMS in
consultation with the CFAS and its Medical Schemes Task
Group, which includes auditors of medical schemes:
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ISA 700 auditor report template:
Report on the Financial
Statements
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ISA 800 and ISRE 2410 auditor report template:
Report on
Parts 4 to 10 of theAnnual Statutory Return
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ISAE 3000 (Revised) auditor report template:
Assurance
Report on Compliance with Sections 36(5) and 36(8) of the
Act
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ISA 810 auditor report template:
Report on the Summary
Financial Statements
These auditor report templates are effective for year-ends of
medical schemes ending on and after 31 December 2014. The
auditor reports may be downloaded from the IRBA website at
The CFAS approved the release of the
Proposed Guide for
Registered Auditors: Engagements on the Annual
Financial Statements and Annual Statutory Returns of a
Medical Scheme
(this proposed Guide) on 26 November
2014, for exposure for public comment.
This proposed Guide deals with the special circumstances
applicable to a medical scheme, including the nature,
characteristics and transactions of a medical scheme, and the
nature of an engagement to report thereon. No audit guide
previously existed in South Africa for the audit of a medical
Committee forAuditing Standards (CFAS)
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Issue 28 October 2014 - March 2015
