IRBA: Proposed Revised SAAPS 3 Illustrative Reports

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IRBA: Proposed Revised SAAPS 3 Illustrative Reports

• 01 July 2026
• Auditing and Assurance
• South African Accounting Academy

Summary:
The Independent Regulatory Board for Auditors (IRBA) has published the Exposure Draft (ED): Proposed Revised South African Auditing Practice Statement (SAAPS) 3 (Revised XXX 2026) Illustrative Reports.

Article:

This proposed SAAPS 3 (Revised) provides practical guidance to registered auditors who report on financial statements both for compliance with either the International Standards on Auditing (ISAs) or the International Standards on Review Engagements (ISREs), as applicable; as well as for the legal and regulatory requirements applicable to auditors and auditor reporting in South Africa, in relation to the content and format of the auditor’s report.

32 Illustrative Reports are provided in this publication – both for audits and independent reviews.

The proposed SAAPS 3 (Revised) includes significant revisions to SAAPS 3 and the key ones include those indicated below.

The incorporation of new and revised reporting requirements arising from:

• ISA 570 (Revised 2024) Going Concern
• ISA 240 (Revised) The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements; and
• The narrow-scope amendments to the International Standards on Quality Management (ISQMs), the ISAs and ISRE 2400 (Revised), Engagements to Review Historical Financial Statements.

The introduction of appendix 1(b) that explains the interaction between the IRBA’s Enhanced Auditor Reporting Rule and the reporting requirements in ISA 570 (Revised 2024).

The inclusion of an additional illustrative report addressing circumstances in which directors elect to apply the disclosure requirements of IFRS 19, Subsidiaries without Public Accountability: Disclosures.

In addition, other proposed revisions aim to achieve the following:

• A better alignment of the illustrative reports with the ISAs; and
• A refinement of underlying circumstances to enhance clarity and reduce ambiguity.

Editorial improvements, such as updating references to the latest versions of the relevant standards and enhancing the clarity and consistency of the wording throughout the document, are also suggested.

Subject to the comments received, the expectation is for the CFAS to approve and issue the final SAAPS in November 2026, with the approval and issue being noted at the subsequent meeting of the IRBA Board.

The previous SAAPS was issued in September 2025. Refer to our previous Alert dated 19 September2025

The proposed effective date of SAAPS 3 (Revised XXX2026) is for audits of financial statements for periods beginning on or after 15 December 2026, with early adoption permitted. An early adoption of this SAAPS, though, will require the full application of ISA 570(Revised 2024), ISA 240 (Revised) and the narrow‑scope amendments to the ISQMs, ISAs and ISRE 2400(Revised) throughout the relevant audit or review engagement.

Comments are due by 7 August 2026

Effective date is periods after 15 December 2026. This co-incides with the 3 projects that were prevalent in 2025, i.e. Going Concern standard, Fraud standard, etc.

Click here to download the 182-page Explanatory Memorandum & Exposure Draft:

https://www.irba.co.za/upload/SAAPS%203%20(Revised%20XXX%202026)%20Exposure%20Draft.pdf 

Relevance to Auditors, Independent Reviewers & Accountants:

• As an auditor and independent reviewer, you need to consider and comply with International Standards on Auditing, Auditing pronouncements and other Assurance Services, and thus you need knowledge of the format and content that must be contained in your audit report.
• All Registered Auditors, Independent Reviewers and other Independent Assurance Practitioners must comply with the IRBA Pronouncements that affect their reporting on relevant engagements.
• IRBA provides illustrative regulatory reports as guidance to auditors.
• As an Auditor & Independent Assurance Practitioner, you need to comply with the relevant reporting requirements, and must therefore refer to the latest illustrative reports for your relevant client engagements.

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