Auditing a body corporate involves high-risk engagements due to the involvement of multiple sets of legislation, including the Sectional Titles Schemes Management Act and Regulations. These legislative frameworks introduce complex accounting implications and require auditors to ensure compliance and accurately report findings in their audit reports. The Independent Regulatory Board for Auditors (IRBA) has identified body corporate audits as high risk, resulting in increased inspections, making it essential for audit managers and partners to deliver high-quality, compliant audits. This course explores the pre-engagement, planning, and finalisation phases of a body corporate audit engagement and provides practical guidance on how to meet both financial and compliance audit requirements. Participants will also gain an understanding of brief income tax considerations relevant to body corporates.
Why Understanding Legislation is Essential
Before conducting a body corporate audit, it is crucial to have a comprehensive understanding of the Sectional Titles Schemes Management Act, Regulations, and related laws.
This ensures that the audit scope covers compliance requirements, mitigating the risk of oversight and ensuring the delivery of audit reports that meet regulatory standards.
A lack of understanding may result in non-compliance issues and negative outcomes during IRBA inspections, posing a significant risk to both the auditor and the body corporate.
Pre-Engagement Phase
Planning Phase
Finalisation Phase
