Important Considerations With Respect to Long Association with an Audit and Review Client
CPD Hours: 2
Price: R450.00
Important Considerations With Respect to Long Association with an Audit and Review Client
Presenters : Lettie Janse van Vuuren CA(SA)
Overview
Independence is one of the fundamental principles prescribed by the professional ethical code. It is crucial that every accountant, auditor and independent reviewer follow this principle as it directly affects one's objectivity.
While every professional wants to retain their clients for as long as possible, how does this long association affect the professional's independence? Section 92 of the Companies Act prescribes requirements for the rotation of auditors, while Section 540 of the IRBA Code prescribes requirements for the long association of personnel (including partner rotation). These sections have to be applied concurrently and consistently and IRBA has addressed apparent shortcomings in their recently published Ethics Staff Alert on this topic. IESBA have also published support material on long association – clearly this is an area that requires guidance!.
Learning objectives & competencies developed
By attending this webinar you will develop the following competencies:
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Stay attentive to the fundamental principle of independence in all engagements as required by the ethical code.
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Stay updated on the relevant legislation and regulations that guide all your professional engagements.
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Review client associations and check and mitigate any threats to your independence.
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Apply IRBA's suggested five-step approach to identify and assess threats to independence due to long association.
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Have ready access to reference material that relates specifically to going concern in auditors' reports.
Content
The webinar will cover the following topics:
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The fundamental principle of independence.
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Legislation - The basics and definitions.
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Section 92 of the Companies Act.
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Section 540 of the IRBA Code.
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Which provisions apply to which entities.
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Identify threats to independence.
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Address threats to independence.
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IRBA's 5-step approach.
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Basics of audit rotation.
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IFAC and IESBA resources.
