Overview

Transactions that are not at arm’s length may pose risks in an audit of the financial statements because if such transactions are not identified by management and/or the auditor it could give rise to risks that are not addressed in the audit, and ultimately in misstatements in the financial statements.

The perpetration of fraud involving transactions that are not arm’s length has become more prevalent at entities in South Africa over the past few years. The IRBA have issued a Staff Audit Practice Alert to provide auditors with guidance regarding the auditor’s considerations with respect to transactions that are not at arm’s length.

During this webinar we will focus mainly on identifying transactions that are not at arm’s length, but we will also highlight some basics on parties that are related.

Join our technical expert Lettie Janse van Vuuren CA(SA) on 26 August 2020 from 10:00 a.m. - 12:00 p.m. as she unpacks the considerations involving transactions that are not arm’s length in an understandable format.

Learning objectives

By the end of this event the attendee will:

• Understand the implications of transactions that are not at arm’s length on the auditor’s work:
  • When ISA 550 (Related parties) applies;
  • Risk assessment procedures - How ISA 550 expands on how ISA 315 and ISA 330 are to be applied;
• Be aware of possible indicators of transactions that are not at arm’s length during the audit;
• Be aware of questions to be considered to determine the audit implications of transactions that are not at arm’s length; and
• Be aware of the illustrative procedures which may be used for risk assessment and further procedures for transactions with the entity that might not be at arm’s length.

Content

The webinar will cover the following topics:

• Introduction.
• Implications of transactions that are not at arm’s length.
• Determining whether ISA 550 (Related parties) applies.
• Summary of Definitions of a Related Party as per:
  • ISAs.
  • IFRS (IAS 24).
  • Companies Act.
  • JSE Listings Requirements.
  • National Treasury.
  • King IV.
  • Income Tax Act.
  • IRBA Code.
• Risk assessment procedures.
  • How ISA 550 expands on application of ISA 315 and ISA 330.
• Specific considerations:
  • Possible indicators.
  • Questions to be considered.
• Illustrative Procedures for risk assessment.
• The effect on the auditor’s report.

Obtaining your CPD certificate

This webinar qualifies for 2 CPD hours with your professional body including: 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 all relevant professional bodies. All attendees are issued with a CPD certificate available in an online profile.

About the presenter

Lettie Janse van Vuuren CA(SA), RA

Lettie is a Chartered Accountant, Registered Auditor, as well as an Assessor and Moderator. She joined SA Accounting Academy in November 2017 as Head of Technical. As a professional trainer and webinar host, she is able to hold the attention of an audience with her relaxed and humorous presentation style. She has a unique ability to communicate with delegates at their respective levels of knowledge and experience. Over the last 20 years, she has trained thousands of partners, managers, trainee accountants and other professionals.

She is responsible for researching, compiling and presenting our MCLU (Monthly Compliance and Legislation Updates). She was the Professional Development Manager at SAICA for 4 years and in charge of accrediting new training offices and monitoring existing ones (including the moderation of training offices and trainee assessments).

Who should attend

The following persons will benefit from attending this webinar:

• Professional accountants including: RA, CA(SA), PA(SA) and BAP(SA).
• Audit managers/supervisors.
• Audit trainees/assurance staff.

Price

• R 475.00 - Online admission - Individual.

• R 950.00 - Online admission - Company.

Steps to register for the event:

If you already have a profile, login and register for the webinar.

If you don’t have a profile, create a free profile then login and register for the webinar.

Click here to create a free profile (There is no charge to create a profile and gain access to our free Monthly Practice Management Series).

Click here to find out about the Technical Resource Centre & CPD Subscription options.

Additional material

By attending this webinar you will be provided with:

• Summarised slide presentation;
• Reference documents and/or course material where available; and
• You can ask questions during the webinar and you will also have access to the presenter after the webinar.