Implications for SA of new Revised Definition of PIEs

22 June 2022
Accounting
South African Accounting Academy

The Independent Regulatory Board for Auditors (IRBA) adopted the IESBA Code, issued during 2018, following the issue of the proposed amendments on exposure in South Africa, together with local enhancements. As such, all amendments to the IRBA Code of Professional Conduct for Registered Auditors (Revised November 2018) (IRBA Code) are in line with the IESBA Code. Since 2018, the IRBA Code has continued to track and be updated for developments in the IESBA Code, following local due process and adoption by the IRBA Board.

Paragraphs R400.8a SA to R400.8c SA of the IRBA Code already include South African requirements relating to the definition of a PIE. These local requirements, which came into effect on 1 July 2016, and are still in force in South Africa were in addition to the IESBA Code requirements at that time.

The revised PIE definition and related provisions within the IESBA Code become effective for audits of financial statements for periods beginning on or after 15 December 2024.

As per the SAAA Daily Alert of 14 April 2022: IESBA released a revised definition of a Public Interest Entity (PIE), together with other revised provisions, in the International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code).

The revised provisions specify a broader list of categories of entities as PIEs whose audits should be subject to additional independence requirements, as compared to the extant IESBA Code. The IESBA has made these changes to meet stakeholders' heightened expectations concerning auditor independence when an entity is a PIE.

Click here to download the IRBA Communiqué:

https://www.irba.co.za/upload/47_%20IESBA%20Issues%20Revisions%20to%20the%20Definitions%20of%20Listed%20Entity%20and%20PIE%20in%20the%20Code.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

Auditors and accountants have to adhere to the IESBA Code of Conduct.
This publication contains the final pronouncement of revisions to the Definitions of Listed Entity and Public Interest Entity (PIE) in the Code.
The local implications for SA need to be considered

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