Auditing public schools presents unique challenges due to their non-profit nature, government funding, and compliance with specific legislation such as the South African Schools Act (SASA). In this course, we explore how these factors, along with new ISA 315 and ISA 330 requirements, shape the audit approach for public schools.
This course will help participants understand key audit requirements, identify high-risk areas, and ensure proper documentation throughout the pre-engagement, planning, and finalisation phases. Managers and partners will gain insights into how the National Guideline accounting framework impacts financial statements and the auditor’s reporting responsibilities.
This course equips managers and partners with the knowledge and practical tools required to effectively plan, execute, and finalise audits of public schools, ensuring compliance with the relevant standards and legislation.
Why Knowledge of the South African Schools Act (SASA) is Essential
Understanding the SASA is critical to ensuring compliance and relevance during the audit.
Without knowledge of the Act, auditors may overlook statutory requirements or misinterpret financial reporting guidelines, which could compromise audit quality.
Familiarity with the Act ensures that the audit approach aligns with legislative requirements, promotes transparency, and serves the public interest.
Pre-Engagement Phase
• Assessing whether the engagement complies with ethical and legal requirements
• Evaluating potential independence risks and setting engagement terms
• Understanding SASA and its effect on the audit scope and reporting responsibilities
Planning Phase
• Impact of the revised ISA 315 and ISA 330 on risk assessment and planning
• Identifying key audit risks unique to public schools, such as misuse of government funding and service-based revenue
• Understanding the National Guideline accounting framework and its influence on financial statement preparation
• Designing audit procedures that align with identified risks
• Documenting the audit strategy and plan in working papers
Finalisation Phase
• Reviewing audit evidence and ensuring sufficient documentation
• Assessing whether the audit opinion is supported by the findings and evidence
• Reporting on significant deficiencies to those charged with governance
• Preparing and finalising the audit report in line with ISA requirements
• Addressing specific auditor reporting responsibilities for public schools
