Overview  

As an auditor or independent reviewer what do you do if your client is trading while they are factually insolvent? How do you fulfill your statutory obligations in these circumstances? Are you aware of the potential legal consequences arising out of such engagements? 

Join my webinar where I will assist you to effectively perform your duties in an engagement where your client is insolvent or is trading under insolvent circumstances. I will also cover all relevant legislation and standards during my presentation.  
 

Learning objectives 

By the end of the webinar the participant should understand: 

• What it means for a company to be insolvent. 
• The types of company insolvencies.
• The solvency and liquidity test (Sec. 4 of the Companies Act)
• How a company should respond to a factual insolvency report by a practitioner. 
• The legal consequences of insolvency w.r.t relevant legislation.
• How to comply with auditing and review standards w.r.t insolvencies.

Course content 

The following topics will be covered in detail during the webinar:

• Background to engagements where client is factually insolvent.
• Current statistics on insolvencies.
• Commercial vs factual insolvency.
• Consideration of the solvency and liquidity test (Sec. 4 of the Companies Act)
• Consideration of Business Rescue vs Liquidation.
• Responses to factual insolvency by companies.
  • Subordination agreements.
  • Letters of comfort.
  • Letters of support.
  • Guarantees and other documents.
• Responsibilities of the Auditor/ Independent Reviewer/ Accounting Officer:
  • When to report to CIPC.
  • When to report to IRBA.
  • When to report to management.
• Potential legal consequences w.r.t relevant legislation:
  • Companies Act.
  • Auditing Profession Act.
  • Companies Regulations.
• Compliance with auditing and review standards.

Obtaining your CPD certificate

Attendance of this 2-hour webinar will accrue 2 CPD hours for members of a relevant professional body such as ACCA, SAICA, AAT, SAIPA, SAIBA, IAC, CIS, ICBA, LSSA, FPI, and the IBA. The SAAA CPD policy is compliant with IFAC IES7 and is recognised by SAICA, AAT, SAIPA, SAIBA, IAC, CIS and others.

Completing the additional assessment will accrue 1 additional CPD point. 

Who should attend

The following persons will benefit from attending this webinar:

• Registered auditors, (RA).
• Accountants in Practice: CA(SA), PA(SA), BAP(SA), ACCA, CIMA, IAC, AGA(SA), CIS, ICBA. 
• Accounting officers, 
• Independent reviewers, and
• Support staff.

Price:

• R 399.00 - Online admission - Individual
• R 699.00 - Online admission - Company
• Choose Individual if you would like to attend this event yourself. Choose Company if you would like to broadcast this event to your entire firm.

Additional material

By attending this webinar you will be provided with:

• Summarised slide presentation, detailed course material and reference documents. 
• You can ask questions during the webinar via the online portal, and you will also have access to the presenter via e-mail after the webinar.