IRBA: Proposed SAAPS3 – Illustrative Reports

IRBA: Proposed SAAPS3 – Illustrative Reports

• 17 March 2025
• Auditing and Assurance
• South African Accounting Academy

Summary:

The Independent Regulatory Board for Auditors’ (IRBA) Committee for Auditing Standards (CFAS) has approved the Exposure Draft (ED): Proposed South African Auditing Practice Statement (SAAPS) 3 (Revised XX 2025), Illustrative Reports for exposure and public comment by 16 April 2025.

Article:

The proposed SAAPS 3 (Revised) provides practical guidance to registered auditors who report on financial statements both for compliance with the International Standards on Auditing (ISAs) or the International Standards on Review Engagements, as applicable; and 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.

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

The proposed SAAPS 3 (Revised) addresses the following:

• It outlines changes that are primarily focused on audits of financial statements for public interest entities (PIEs).
• It has been updated to include the International Auditing and Assurance Standards Board’s (IAASB) Narrow Scope Amendments to ISA 700 (Revised) as a Result of the Revisions to the IESBA Code that Require a Firm to Publicly Disclose When a Firm Has Applied the Independence Requirements for PIEs.
• In January 2024, the IRBA Board approved the IAASB’s narrow scope amendments to ISA 700 (Revised) for adoption, issue and prescription by registered auditors in South Africa.
• In addition, the International Ethics Standards Board for Accountants (IESBA) Code’s transparency requirements on independence were adopted into the IRBA Code of Professional Conduct for Registered Auditors (IRBA Code).
  • This was done as part of the Revisions to the Definitions of Listed Entity and Public Interest Entity in the IRBA Code, which are effective for audits of financial statements for periods beginning on or after 15 December 2024, with early adoption permitted.

Other proposals that are contained in the ED include:

• Editorial revisions for improved clarity, consistency and accuracy;
• Guidance on review engagements, as the IRBA Code’s transparency requirements on independence apply to both audits and reviews; and
• Proposals regarding regulatory reports for auditors in specific industries.

The previous SAAPS was issued in March 2024.

The proposed effective date for SAAPS 3 (Revised) is for auditor’s or independent reviewers’ reports issued for audits or independent reviews of financial statements for periods beginning on or after 15 December 2024, with early adoption permitted.

Deadline for comments is 16 April 2025.

The proposed document includes a 9-page memorandum, setting out the request for specific comments in the form of 7 questions.

Click here to download the 154-page Explanatory Memorandum & Exposure Draft:

https://www.irba.co.za/upload/SAAPS%203%20(Revised%20XX%202025)_ED%20_Memo.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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