National Treasury expects that more consumers will choose to enter into lay-by arrangements to acquire household goods. A recent amendment to the Income Tax Act will address the adverse tax consequences of lay-by agreements for the supplier of the goods. South African consumers have long been using lay-by agreements as a means of purchasing household…
Special Considerations − Audits of Group Financial Statements (Including the Work of Component Auditors) The International Standard on Auditing 600 (Revised) (ISA 600 (Revised)) is a special considerations standard that applies to a group audit, including when component auditors are involved. The International Auditing and Assurance Standards Board (IAASB) wanted to ensure that ISA 600…
ISQM 11, ISQM 22 and ISA 220 (Revised)3 come into effect on 15 December 2022. These standards are expected to have a significant impact on all firms that perform engagements in accordance with the IAASB standards. The South African Institute of Chartered Accountants (SAICA), in collaboration with the Pan African Federation of Accountants (PAFA) and…
Deregistration of companies and close corporations occurs when a company is removed from the Companies and Intellectual Property Commission (CIPC) register. The CIPC publishes in the Government Gazette the list of companies and close corporations that would have been deregistered. In terms of the Companies Act 71 of 2008, section 82(3)(a)(i), the CIPC may refer…
Reinstatement is one of the remedies where it was found that an employee was unfairly dismissed. The employee will normally receive back pay from the date dismissed, subject to employees’ tax being withheld by the employer from the amount. Disputes relating to a dismissal of an employee on the basis that it was unfair are…
The auditor is tasked with obtaining audit evidence to be able to draw reasonable conclusions on which to base the auditor’s opinion1 and in obtaining such evidence, to consider the relevance and reliability of the information to be used as audit evidence.2 This article focuses on information to be used as audit evidence that is…
Auditors recognise the importance of exercising an appropriate level of professional scepticism during the performance of an audit but get stuck on how to practically demonstrate that this has been achieved. This article provides an overview of the provisions included in ISA 540 (Revised) relating to the practical application of professional scepticism when auditing accounting…
Post-Implementation review in South Africa The new and revised auditor reporting standards became effective for audits offinancial statements for periods ending on or after 15 December 2016. With more than two years of post-implementation experience, SAICA provides an overview and analysis of the revised format of the auditor’s reports of certain entities listed on the…
In an environment where accounting irregularities and auditing failures are in the spotlight, the pressure remains on auditors to enhance communication between them and investors, as well as those charged with governance, and to increase the confidence of the users of the financial statements in the auditor’s reports. A question remains, however, whether the users…
All professional accountants, whether in business or in private practice, must comply with the requirements of the SAICA Code of Professional Conduct of and whenever compliance with the Code is threatened, safeguards are the only way to ensure that the professional accountants ‘meet their responsibility to act in the public interest’ to which the profession…