S22 Committee for Auditing Standards: APA
- The committee must consist of a minimum number of members appointed by the regulatory board
- The committee must assist the regulatory board with
- Developing, maintaining, adopting or prescribing auditing pronouncements
- Considering relevant international changes
- Promoting and ensuring the relevance of auditing pronouncements - The committee may assist the regulatory board in influencing the nature of international auditing pronouncements
S37 Registration of individuals as registered auditors: APA
Applicants must:
1. Have completed the prescribed education, training and competency requirements
2. Have arranged for continuous professional development
3. Be a South African resident
4. Is the fit and proper person to practice the profession
Pay the fee included on registering & receive a certificate of registration
The board may refuse registration
1. Not the fit or proper person
2. Removed from an office of trust on a case of misconduct
3. Convicted of theft, forgery, fraud, corruption and sentenced for imprisonment
4. Incapable or not of sound mind
5. Disqualified for registration under a sanction imposed under this act
- Unrehabilitated insolvent
- Compromise with creditors
- Provisional sequestration
S38 Registration of firms as registered auditors: APA
- A partnership where all partners are registered auditors
- Sole proprietors – The proprietor is a registered auditor
- Companies which
- All shareholders are individuals who are registered auditors ;
- All shareholders are directors and all directors are shareholders;
- In the memorandum of incorporation stated that all directors will be jointly and severally liable for debts.
S39 Termination of registration: APA
- Who, subsequent to registration becomes guilty of disqualifications in S37 or
- Whose registration was made in error or on information subsequently proved to be false
- Who, prior to registration, has been guilty of improper conduct and therefore not a fit and proper person to be an RA or
- Whose estate is sequestrated or enters into a compromise with creditors or
- Who ceases to be a member of an accredited professional body.
Prior to cancelling registration the board must give between 21 and 30 days’ notice.
S41 Practicing: APA
- Only a registered auditor may engage in public practice or hold out as registered auditor.
- A person who is not registered may not:
- perform any audit (RA May provide instructions, control and supervision to non-RA’s during the performance of an audit),
- Pretend to be a registered auditor,
- use the name registered auditor,
make people believe that you are registered
- The above does not apply to:
- Internal Auditor as a title,
- Accountant as a title,
- A member of a club which is not carried out with the view to profit, provided no fee is received (honorary auditor)
- Auditor general appoints a person to carry out an audit on his behalf (i.t.o. Public Audit Act 2004) - A Registered Auditor may not without consent of the board knowingly employ a person to practice who:
- was suspended from public practice,
- is not registered as registered auditor and was previously registered,
- the board refused to register - A Registered auditor may not: practice under a firm name or title unless on every letterhead bearing the first name and title there appears:
- first names/initials and surname of the registered auditor
- in case of partnership, at least first names/initials and surname of managing partners
- In terms of a company, the names of the directors according to S171 of the Companies Act.
S44 Duties in relation to an audit: APA
- S44 Duties in relation to an audit
- Where RA which is firm is appointed to perform an audit:
assign individual RA who will be responsible & accountable for the audit
make name & surname available to firm (client) & IRBA on request - RA may not, without such qualification as may be appropriate in circumstances, express an opinion unless:
- Criteria:
b)He/she satisfied him/herself of the existence of all assets and liabilities
c)Proper accounting records have been kept in at least one of the official languages;d)All information, vouchers and documents necessary for the proper performance of his duties were obtained;e)Any Reportable Irregularity that existed at the date of the report, had been properly disclosed and reportedf)Where an undertaking is regulated by law, complied with all requirements of that law.g)He/she satisfied him/herself to the fairness/truth/correctness of the financial statements;- If RA/ member responsible for book keeping
→ must indicate this on any report on bus. fin affairs - Not regarded as keeping books if only closing entries, assistance with adjustments etc.
- May not conduct audit if conflict of interests exists
- Where RA which is firm is appointed to perform an audit:
S44 irregularities: APA
Duty to report irregularities: Report to IRBA
1. Any unlawful act or omission committed by
2. Any person responsible for the management of an entity which
3. Has caused or is likely to cause financial loss to
- The entity or its partner, member, stakeholder, creditor or investor OR
4. Is fraudulent or amounts to theft
5. Represents a material breach of any financial duty owed to the entity or its partner, member, stakeholder, creditor or investor under any law applying to the entity or the conduct of management thereof
Improper conduct
- Contravenes or fails to comply laws (APA, Any other Act in performance of services)
- Dishonest in performance of duties or found guilty by court
- Contravenes audit pronouncements/ Professional Code of Conduct
- Professional competence (Prof competence, due care, skill)
- Tax evasion
- Self or client
- Knowingly or recklessly
- Prepare or sign false statements (oral or written) OR false books or records
- Requests/orders from IRBA and others
Not responding to the regulatory board within a reasonable time
Not complying with requests from the regulatory board within a reasonable time - Refuse to resign
From clients, and transfer books etc
Reportable Irregularity -APA - Failure to pay monies over to IRBA
- Abandons practice
- Knowingly or recklessly makes any false declaration or submission
- Makes any declaration or submission which the registered auditor or registered candidate auditor ought reasonably to have known is false.
- Unprofessional behaviour (Bring the auditing profession into disrepute)
APA
S22 Committee for Auditing Standards
S37 Registration of individuals as registered auditors
S38 Registration of firms as registered auditors
S39 Termination of registration
S41 Practice
S44 Duties in relation to an audit
S46 Limitation of liability
SIACA VS IRBA
SIACA:
- Write first Board exam (Initial Test of Competence) at start of trainee contract
18 Months later
- Write second Board exam [Assessment of Professional Competence (APC)]
18 Months later
- Qualify as CA(SA)
IRBA:
- ADP Program- 18 months professional experience
- Register as Registered Auditor
