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IRBA ISSUES RULES REGARDING IMPROPER CONDUCT AND CODE OF PROFESSIONAL CONDUCT FOR REGISTERED AUDITORS |
| Source: | Independent Regulatory Board for Auditors | | Country: | South Africa | | Date: | 23/06/2010 | | Contributor: | http://www.irba.co.za | | Web: | Dieter Gloeck |
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The Committee for Auditor Ethics (CFAE) of the South African Independent Regulatory Board for Auditors (IRBA) issued the revised Rules Regarding Improper Conduct and Code of Professional Conduct for Registered Auditors.
Some significant changes to the Code include:
• The Code now incorporates the conceptual framework for identifying threats to independence and possible safeguards to be applied when accepting and performing an audit or review engagement or any other assurance engagement;
• The definition of Professional Services has been expanded; The detailed sections 290 and 291 provide more specific guidance on threats to independence frequently encountered by auditors in public practice;
• The existing joint and vicarious liability section in the existing IRBA Code has been removed pending further research by the CFAE.
The Rules and Code are prescribed by the Board and come into effect from 1 January 2011 in order to allow sufficient time for implementation by Registered Auditors. Transitional provisions at the end of the Code provide for later effective dates for new independence requirements, which are consistent with the effective dates in the International Federation of Accountants’ (IFAC) Code of Ethics for Professional Accountants (the “IESBA Code”) issued by the International Ethics Standards Board for Accountants’ (IESBA) in June 2009. The revised Rules repeal and replace the Old Disciplinary Rules 2.1 - Improper Conduct and Punishment. Whilst retaining most of the “Old Disciplinary Rules, “new” rules have been added. The revised Code replaces the existing IRBA Code of Professional Conduct. The Code signals a significant change in the drafting convention followed in the existing IRBA Code. The CFAE has determined it appropriate for South Africa to adopt Parts A and B and the Definitions in the IESBA Code. However, more stringent South African requirements are incorporated into the relevant sections of the Code.
The Rules and Code are available in PDF format and may be downloaded from the IRBA website here. |
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