Attending the course and successfully completing the post-assessment, will grant you
2 hour/s verifiable CPD, recognised by the various
professional bodies (SAICA, SAIBA, ACCA, IACSA, IRBA & etc). Please note that the
CPD certificate will only be issued once the post-assessment has been completed.
Web Based (Online)
LYNETTE BADENHORST
lynette@probetatraining.co.za
A topic that causes a lot of uncertainty in the profession is that of insolvency, mainly because there are different types of insolvencies that must be considered by the accounting professional.
Accounting professionals also have a duty to report these insolvencies whilst performing certain types of engagements.
Information about these insolvencies and how to deal with them are not always readily available, therefore I have decided to put together this presentation in order to assist practitioners in this regard.
During this presentation I will be answering the following questions.
What is the difference between the following?
• Technical or factual insolvency
• Commercial insolvency
• Financially distressed
• Going concern problems
• Fraudulent or reckless conduct
• Common law fraud
When does any form of insolvency becomes an irregularity?
When does insolvency constitute an offence or infringe a statutory or common rule?
When should the auditor report insolvencies?
When should the independent reviewer report insolvencies?
When should the accounting officer report insolvencies?
When must the directors of a company perform a solvency and liquidly test?
Under which circumstances will the Commission issue a notice to a company to cease trading?
What effect will the following have on the insolvency position of a company?
• Subordination agreements
• Letter of comfort
• Guarantees
• Letter of support
What type of liability could an auditor, independent reviewer, accounting officer or director of a company of a director incur for not dealing in an appropriate manner with any form of insolvency
