In South Africa, we have almost 400 Acts that tell us what we are and are not allowed to do. This includes the business environment. Some of these Acts might not have any consequences for non-compliance, while others have far-reaching financial implications for entities that does not comply. For this reason, it is important for auditors to understand their clients legal environment and the laws and regulations they should adhere to. Auditors should also be aware of the implications to the financial statements, as well as their audit, should their clients not comply.
This course looks at the auditors responsibility towards non-compliance of laws and regulations and the reporting requirements when such non-compliance is suspected or identified. This course also focuses on the consequences to the auditors if they do not comply with their reporting responsibility.
After this course delegates should be able to understand the effect of laws and regulations on their clients, but also the effect of not complying with these laws and regulations to the audit. Delegates should understand the difference between laws with a direct effect and laws with an indirect effect and the different requirements regarding each.
Lastly, delegates should understand what their responsibilities are once non-compliance have been identified and what and whom to report to.
The legal environment in South Africa
The effect of the legislative environment on businesses
Who is responsible for ensuring compliance with laws and regulations?
What is the effect on businesses if they do not comply?
What is the overall objective of the auditor within an audit and what does this mean for the responsibility towards laws and regulations?
ISA 250 Consideration of Laws and Regulations in an Audit of Financial statements.
o Obtaining an understanding of the legal environment
o Should specific procedures be performed and which laws and regulations should they be performed for?
o What does it mean when an Act has a direct effect on the financial statements?
o What does it mean when an Act has an indirect effect on the financial statements?
o How do I identify the risk of non-compliance?
o What procedures should be performed to identify non-compliance?
o What constitutes non-compliance and what do I do if I identify non-compliance?
o What should I document?
Reporting requirements in terms of revised ISA 700 as well as APA section 45
Compliance with anti-bribery and corruption legislation
Changes to the code of conduct
The audit and in an independent review.
This session will be presented at an intermediate level and all employees within an engagement team, regardless of their level will benefit.
