IRBA: Feedback Statement on the Postimplementation Review of Its SAAEPS 1

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IRBA: Feedback Statement on the Postimplementation Review of Its SAAEPS 1

• 29 May 2025
• Auditing and Assurance
• South African Accounting Academy

Summary:

The Independent Regulatory Board for Auditors (IRBA) has issued a Feedback Statement on South African Assurance Engagements Practice Statement (SAAEPS) 1, Sustainability Assurance Engagements: Rational Purpose, Appropriateness of Underlying Subject Matter and Suitability of Criteria.

Article:

The post-implementation review (PIR) was announced in August 2023.

This review, conducted in 2024, was aimed at gathering valuable insights for the benefit of the ongoing evolution of sustainability assurance discussions.

SAAEPS 1, issued in August 2018 by the IRBA’s Committee for Auditing Standards (CFAS), provides practical guidance to practitioners on the preconditions for accepting a sustainability assurance engagement, as outlined in International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information.

Key Findings from the Post-implementation Review

Based on the four areas that the PIR focused on, below are highlights from the feedback received:

• Usage of SAAEPS 1: Firms utilise SAAEPS 1 to varying degrees, ranging from direct references in working papers to informing their methodologies, alongside reliance on global firm papers referencing ISAE 3000 (Revised).
• Understanding and Implementation: Overall, SAAEPS 1 is well understood by auditors and serves as a valuable supplement to the requirements of ISAE 3000 (Revised).
• Addressing Practical Challenges: Firms reported using SAAEPS 1, particularly the guidance on rational purpose, as a tool for discussion with management during pre-engagement activities and readiness assessments.
• Fitness for Purpose: While acknowledging the continued relevance of the South African-specific guidance in SAAEPS 1, general agreement was that it would require revision to align with the newly issued ISSA 5000. The importance of Appendix A (Considerations) of SAAEPS 1 was frequently highlighted.

The review also highlighted broader perspectives on sustainability assurance engagements, including the importance of processes and controls for non-financial information; the involvement of governance structures; the impact of global sustainability-related developments; the role of readiness assessments; and considerations regarding reporting criteria and evidence availability. The potential need for the IRBA to consider awareness-raising efforts that extend to non-registered auditors, given the professional-agnostic nature of ISSA 5000, was also noted.

Next Steps

The CFAS and Committee for Auditor Ethics are coordinating efforts to recommend that the IRBA Board adopt ISSA 5000 and localise the International Ethics Standards Board for Accountants’ International Ethics Standards for Sustainability Assurance (including International Independence Standards) into the IRBA Code. These recommendations are expected to be considered by the IRBA Board in the first quarter of 2026.

The PIR Feedback Statement is available at https://www.irba.co.za/upload/SAAEPS%201%20PIR%20Feedback%20Statement.pdf or https://irba.createsend1.com/t/d-l-shkihkl-l-y/

SAAEPS 1 serves as a valuable supplement to ISAE 3000.

Access the SAAEPS 1 here: https://www.irba.co.za/upload/10%20-%20Updated%20SAAEPS%201_Final.pdf

SAAEPS 1 is effective for Audits and reviews of financial statements for periods beginning on or after 15 December 2022; and Other assurance and related services engagements beginning on or after 15 December 2022.

Click here to download the IRBA Communiqué document:

https://www.irba.co.za/upload/33_%20Feedback%20Statement%20on%20Post%20Implementation%20Review%20of%20SAAEPS%201.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• All Registered Auditors, Independent Reviewers and other Independent Assurance Practitioners must comply with the IRBA Pronouncements that affect their reporting on relevant engagements – including sustainability assurance engagements.
• Practitioners should be aware of pronouncements that follow reviews/amendments to Standards and pronouncements, such as SAAEPS 1.

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