IRBA: Revised Illustrative Mutual Banks Act Regulatory Auditors Reports

IRBA: Revised Illustrative Mutual Banks Act Regulatory Auditors Reports

• 12 December 2023
• Auditing and Assurance
• South African Accounting Academy

In terms of Regulation 6(5) of the Mutual Banks Act, these reports have been rendered per the wording and practices that the Prudential Authority (PA), the South African Institute of Chartered Accountants and the IRBA agree to from time to time.

In summary, the revised illustrative regulatory reports have been updated for the:

• Removal of the reporting line references from the regulatory reports and their replacement with references to a separate document to be issued by the PA;

• Edits made to the "Other Information" sections of the Parts A, B, C and D reports;

• Inclusion of an "Other Matter Paragraph" (Parts A, B, C and D reports) in respect of interpretive matters, to align with the Regulation 46 report applicable to commercial banks; and

• Development of a Part G report relating to Regulation 6(3). This report addresses the auditor's reporting obligations to report on the extent of reliance placed on internal controls of the mutual bank, as established and maintained by the directors, with financial and regulatory reporting and compliance with the Mutual Banks Act and Regulations.

Click here to download the Revised reports:

https://www.irba.co.za/upload/Revised%20Illustrative%20Mutual%20Banks%20Act%20Reports(1).pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• In terms of Regulation 6(5) of the Mutual Banks Act, these reports have been rendered per the wording and practices that the Prudential Authority (PA), the South African Institute of Chartered Accountants and the IRBA agree to from time to time.

• IRBA provides illustrative regulatory reports as guidance to auditors.

• Only applicable to those clients in the banking industry.

• 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.

Relevance to Your Clients:

• None.

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