Sanchia Temkin
25 June 2009
Johannesburg — SOUTH African auditors will soon have access to a new set of updated and clarified international standards on auditing.
Bernard Agulhas, CEO of the Independent Regulatory Board of Auditors (Irba), said recently the International Federation of Accountants (Ifac) had completed its Global Clarity Project in which SA had taken part. Agulhas himself attended the Ifac meeting last month regarding the project.
The international auditing board had issued the standards in a form designed to help understand and implement them.
Agulhas said Ifac also planned to look at a project on how auditors should exercise their professional judgment. "Auditors differ as to how they should exercise their professional judgment," he said.
The regulatory board had recently started a project to consider the liability of auditors in SA. The project would be part of a larger project -- to consider amendments to the Auditing Profession Act.
"It is also questionable at this stage whether capping or proportional liability is the answer for the South African auditing profession."
Agulhas said the effect of the new Companies Act and a review of the Auditing Profession Act were also key priorities for Irba this year.
Soon after enactment of the Auditing Profession Act in 2006, former finance minister Trevor Manuel indicated that the new legislation would require a period to be tested and, if necessary, for identifying areas where processes could be improved.
Agulhas said the previous board had approved a project to continue drafting amendments to auditing legislation. It would be presented to the Treasury later this year.
The South African Institute of Chartered Accountants (Saica) is in the process of changing the competency framework for chartered accountants. Saica is trying to produce a chartered accountant who will not rely on part two of the qualifying examination in order to qualify. However, Agulhas said to be an auditor, candidates needed to pass parts one and two of the exam.
"We are doing more research on the issue, particularly in regard to whether Saica's proposals will have an effect on our qualification."
Irba was in possession of 132 reports of alleged irregularities and contraventions of accounting regulations by South African companies, of which 52 cases were still being investigated by external regulators. Of these, 75% related to tax irregularities or contraventions of the Companies Act. In January the regulator was in possession of just more than 900 reports.
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