IRBA: Proposed Guide for RAs (Revised) – Joint Audit Engagements

IRBA: Proposed Guide for RAs (Revised) – Joint Audit Engagements

• 01 December 2023
• Audit
• South African Accounting Academy

The original guide was issued in August 2020.

The proposed Guide (Revised) contains significant proposed amendments regarding sources of information and/or procedures that a joint auditor may consider in satisfying themselves that there are sufficient appropriate systems of quality management (SOQM) in place at each firm that is party to the joint audit engagement. 

As a result, SOQM is addressed through the following:

• Introduction of a new attachment, Appendix 3, in the ED concerning topics and/or aspects a joint auditor may consider in gaining an understanding of another joint auditor's SOQM;

• Relevant requirements of the International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, form part of the ED;

• Requirements of ISA 220 (Revised), Quality Management for an Audit of Financial Statements, that are of relevance have been introduced into the ED; and

• Paragraph 45 of the ED has been updated to reference paragraph A30 of ISQM 2, Engagement Quality Reviews, regarding factors that may impact the nature and extent of the engagement quality reviewer's procedures for a specific engagement.

In addition, the following amendments have been incorporated into this proposed Guide (Revised):

• Updates for references to the IRBA Code of Professional Conduct for Registered Auditors (Revised April 2023); ISA 220 (Revised), paragraph A21A; and ISA 600 (Revised), Special Considerations - Audit of Group Financial Statements (Including the Work of Component Auditors), paragraph A25.

• Paragraph 9 of the ED refers to South African firms performing joint audit engagements. The task group concluded that this adjustment would be a better reflection of the objective of the Auditing Profession Act 26 of 2005, as amended.

• All references to the IRBA's Mandatory Audit Firm Rotation Rule have been removed, as a result of the Supreme Court of Appeal Judgment setting aside the Rule in May 2023.

The submission deadline for comments to the IRBA is 29 February 2024, and the plan is to approve the final guide in May 2024.

Then, the final Guide (Revised) will be effective for audits of financial statements for periods beginning on or after 31 December 2024, with early adoption permitted.

Click here to download the Proposed Guide:

https://www.irba.co.za/upload/Proposed%20Guide_Joint%20Audit%20Engagements%20(Revised%20XX%2020XX).pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• Members of IRBA should stay up-to-date with the latest developments and guides that affect registered auditors.

• Practitioners must be aware of the content of any guidance issued by IRBA.

• As a joint auditor, you need to consider and assess the other joint auditors, and perform certain procedures in this regard. 

Relevance to Your Clients:

• None

0 COMMENTS

LEAVE A COMMENT