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LPFF: Auditors and AUP report for refunds
- 29 November 2023
- Regulatory Compliance and Legislation
- South African Accounting Academy
SAICA has published the brand new AUP Regulatory report for Legal Practitioner Refund (refer to our previous Technical Alert of 3 November 2023)
This is an illustrative Regulatory Report for Agreed-Upon Procedures Engagements Performed in Respect of an Application by a Legal Practitioner Firm for a Refund of Bank Charges and Audit Fees.
It is effective for agreed-upon procedures engagements beginning on or after 1 November 2023.
This communication from the LPFF also relates to the transitional period (that applied until 15 November 2023) regarding the Agreed-upon procedures report to be used for applications for refunds of bank changes and audit fees.
The LPFF will accept AUP reports NOT based on the new SAICA template, that have already been submitted to the Provincial Legal Practice Council, until 15 November 2023, thereafter, only AUP reports in the format issued by SAICA on 3 November 2023 will be accepted.
Until such time as the Application Form is updated to reflect the guidance in the LPFF directive, auditors are advised to cross out the “CERTIFICATE BY AUDITOR” section on the Application Form and to refer to the agreed-upon procedures report attached to the Application Form.
This AUP report is illustrative in nature. Editorial changes may be made to the report – but it is not advised, as the LPFF and Legal Practice Council (LPC) have acknowledged that the procedures in this illustrative report are appropriate for the engagement.
Click here to download the LPFF Directive and explanatory document:
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https://www.fidfund.co.za/wp-content/uploads/2023/11/LPFF-Directive.pdf
- https://www.fidfund.co.za/wp-content/uploads/2023/11/Communication-LPFF-directive-AUP-report-on-Application-for-refund-of-bank-charges-and-audit-fees-form.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
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The Legal Practitioners Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (Non-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
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As an auditor and independent reviewer, you need to consider and assess compliance with the LPA and Guidance documents issued by the LPFF.
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As an accountant, you may need to advise your clients who are legal practitioners on compliance with the LPA and adherence to the latest guidelines issued by the LPFF.
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As an auditor/assurance practitioner, you should ensure that you provide the correct revised AUP Report.
Relevance to Your Clients:
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A legal practitioner has a duty to comply with the Legal Practitioners Act.
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Your clients who are legal practitioners, must not only comply with the LPA, but they also have to adhere to the latest guidance documents issued by the LPFF.