IRBA: Revised Illustrative Auditor’s Reports on Financial Statements (ISA 700 (Revised) Reports) of Medical Schemes

IRBA: Revised Illustrative Auditor’s Reports on Financial Statements (ISA 700 (Revised) Reports) of Medical Schemes

• 03 October 2025
• Audit
• South African Accounting Academy

Summary:
The Independent Regulatory Board for Auditors’ (IRBA) Committee for Auditing Standards (CFAS) has approved the issue of the Revised Illustrative Auditor’s Reports on Financial Statements (International Standard on Auditing (ISA) 700 (Revised) Reports) of Medical Schemes - by issuing this updated Appendix 5 in the Revised Guide for Registered Auditors: Assurance Engagements on the Annual Financial Statements and Annual Statutory Returns of a Medical Scheme - Reports on Financial Statements (ISA 700 (Revised) Reports).

Article:

This update to Appendix 5, Auditor’s Report Templates on Financial Statements (ISA 700 (Revised) Reports), is issued outside of the Revised Guide for Registered Auditors: Assurance Engagement on the Annual Financial Statements and Annual Statutory Returns of a Medical Scheme (Updated for narrow-scope amendments made to IAS 1).

Appendix 5 has been updated to incorporate the International Auditing and Assurance Standards Board’s 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 Public Interest Entities (PIEs) which is effective for audits of financial statements for periods beginning on or after 15 December 2024, with early adoption permitted.

The templates also reflect changes required by the IRBA Rule on Enhanced Auditor Reporting for the Audits of Financial Statements of Public Interest Entities which was already effective for audits of financial statements for periods ending on or after 15 December 2024.

The illustrative auditor’s report templates for audits of financial statements of medical schemes are effective for audits of financial statements for periods beginning on or after 15 December 2024, with early adoption permitted.

For audits of entities that are PIEs, it should be noted that the changes made as a result of the EAR Rule became effective for audits of financial statements for periods ending on or after 15 December 2024.

Click here to download the 12-page revised document:

https://www.irba.co.za/upload/Medical%20Schemes%20ISA%20700R%20Auditor's%20Report%20Templates.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• Auditors, Independent Reviewers and Accountants should always be aware of the latest publications issued by regulators and standard-setting boards, such as the IRBA, as well as what the impact will be on engagements performed on medical schemes.
• IRBA provides illustrative regulatory reports as guidance to auditors.
• As an auditor, 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 for your specific client – in this case, medical schemes.
• As an auditor of a medical scheme, you need comply with and use the individual prescribed auditor report templates, and refer to relevant circulars issued by the Council for Medical Schemes that affect auditors.

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