The Auditor-General of South Africa (AGSA) Audit Directive for 2024

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The Auditor-General of South Africa (AGSA) Audit Directive for 2024

• 29 February 2024
• Auditing and Assurance
• South African Accounting Academy

The purpose of this directive is to facilitate optimal levels of accountability and transparency in the management of public resources.

This notice is effective for financial periods beginning on or after 1 April 2023 and is applicable until further notice. A similar notice will not necessarily be issued annually.

This latest AG Directive that was issued on 6 December 2023, and replaces the previous directive which was gazetted on 8 February 2023.

Content of the notice:

• Audit functions performed in terms of the PAA
• Annual audit
  • Auditing standards as well as the frequency, nature and scope of audits – section 13(1)(a) and (b) of the PAA
  • Auditing standards
  • Audit of financial statements or similar financial reporting – section 20(2)(a) of the PAA
  • Audit of compliance with applicable legislation relating to financial matters, financial management and other related matters – section 20(2)(b) of the PAA
  • Audit of reported information on performance against predetermined objectives – section 20(2)(c) of the PAA
  • Internal control deficiencies, as indicated by the reference to financial management in section 4(1) and (3) of the PAA
  • Focus areas – section 13(1)(b) of the PAA
  • Material irregularities – section 1, 5(1A), 5(1B), 5A, 5B, 20(4) of the PAA
  • Discretionary engagements – section 5(1)(a), (aa) and (d) of the PAA
  • Complaints against the AGSA – section 13(1)(c) of the PAA
  • Audits of public entities and other institutions not performed by the AGSA – section 4(3) of the PAA
  • Audits that the AGSA has opted not to perform – section 25(1)(a) of the PAA 
  • Auditees for which legislation is not prescriptive in respect of the financial statements – section 14(2)(b) of the PAA 
  • Timing and submission of information for audit purposes – and confidentiality of information – sections 15(2)(b) and 50 of the PAA 
  • Assessment and recognition of the financial reporting frameworks applicable in the public sector – section 20(2)(a) of the PAA 
  • Withdrawal of previous government gazettes
  • Effective date
  • Enquiries
• Annexures:
  • Annexure A: Applicability of criteria developed from the performance management and reporting framework to different categories of auditees
  • Annexure B: Criteria used to evaluate internal control
  • Annexure C: Monitoring checklist for audits not conducted by the auditor-general of South Africa
  • Annexure D: Consultation with the auditor-general of South Africa on the appointment or discharge of the registered auditor in terms of sections 25 and 26 of the PAA
  • Annexure E: Regulations issued in terms of the PAA and relevant extracts from the PAA

Click here to download the Directive:

https://www.gov.za/sites/default/files/gcis_document/202312/49825gon4150.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• The PAA is yet another piece of legislation that your Public Sector 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.
• As an audit firm perhaps performing audits on behalf of the AGSA, you need to be aware of the latest directives issued by the AGSA.

Relevance to Your clients:

• Only applicable to your Public Sector clients.

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