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IRBA: Staff Audit Practice Alert 13: Strengthening Public Sector Audits Identifying and Responding to Public Sector-Specific Risks
- 06 October 2026
- Auditing and Assurance
- South African Accounting Academy
Summary:
The Independent Regulatory Board for Auditors (IRBA) has issued Staff Audit Practice Alert 13 to help auditors identify and respond to public sector-specific risks during audit engagements.
Article:
The Alert provides practical guidance on risk assessment, fraud risks, governance considerations, and auditor responses in the public sector environment.
The Alert is based primarily on International Standards on Auditing (ISA) 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement, and the relevant aspects of ISA 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements.
It provides:
- Implementation material for auditors performing Section 4(3) audits, with a focus on matters arising during the risk assessment process.
- Illustrative examples of possible public sector events and conditions, related risk factors and auditor considerations relating to governance, oversight, organisational structures, business models, information technology, regulatory factors and financial reporting.
- Public sector-specific fraud risks, red flags, possible auditor responses, including risks relating to procurement and contract management processes, and the importance of appropriately calibrated professional scepticism.
- Practical examples of auditor responses to identified risks, including the involvement of experts, considerations relating to non-compliance with laws and regulations, as well as reportable irregularities.
Although the Alert focuses on public sector audit engagements, it may also provide useful insights to auditors of private sector entities that have substantial relationships with the government.
Contents:
- Introduction
- Overall Understanding of Risk in the Public Sector
- Risk Assessment Procedures and Related Activities
- Obtaining an Understanding of the Entity and Its Environment
- Applying a Fraud Lens in the Risk Assessment Process
- Professional Scepticism and Biases
- Annexure A: Illustrative Examples of Analytical Procedures
Effective date is immediately from 10 September 2026.
Click here to download the 18-page Staff Alert:
https://www.irba.co.za/upload/Staff%20Alert%2013%20Strengthening%20Public%20Sector%20Audits.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.
- Registered auditors and firms play a critical role in ensuring the accuracy and integrity of financial information that is relied upon by investors, stakeholders, and the public.
- Auditors should be aware of practical guidance on risk assessment, fraud risks, governance considerations, and auditor responses in the public sector environment.