All such reports should be performed in terms of:
- Statutory requirements, if relevant
- Common law requirements related to care, skill and diligence
- Code of conduct issued by the Southern African Institute for Business Accountants (SAIBA)
A report may only be issued once all the above requirements are met.
However, reporting engagements that are classified as an audit, review or compilation, should in addition to the above requirements, adhere to:
- Engagement standards issued by the International Federation of Accountants (IFAC).
IFAC is recognised as a worldwide organisation that represents the accountancy profession. Founded in 1977, its mission is to serve public interest by continuing to strengthen the worldwide accountancy profession and contributing to the development of strong international economies by establishing and promoting adherence to high-quality professional standards, furthering the international convergence of such standards, and speaking out on public interest issues where the profession’s expertise is most relevant.
IFAC established the International Auditing and Assurance Standards Board (IAASB) to establish:
- A code of Ethics
- International Standards on Quality Control
- International Standards on Auditing, Review, Other Assurance and Related Services (IAS, ISRE, ISRS)
SAIBA is not a member of IFAC, but has adopted the Codes and Standards as issued by them, except as noted in the SAIBA Memorandum of Incorporation (MOI). SAIBA members are therefore obligated to adhere to the requirements as detailed in the Code, ISQC1 and the ISAs, ISREs and ISRSs where relevant.
The International Auditing and Assurance Board (IAASB) requires that:
- International Standards on Auditing (ISAs) are to be applied in the audit of historical financial information. Only registered auditors may perform an audit on financial statements. BAPs may not perform an audit on financial statements
- International Standards on Review Engagements (ISREs) are to be applied in the review of historical financial information. Only BAPs (that have obtained the SAIBA Practice Licence: Independent Review Engagements) must apply ISREs when performing independent review engagements
- International Standards on Assurance Engagements (ISAEs) are to be applied in assurance engagements other than audits or reviews of historical financial information
- International Standards on Related Services (ISRSs) are to be applied to compilation engagements, engagements to apply agreed-upon procedures to information and other related services engagements as specified by the IAASB.
SAIBA Guide to Accounting Officer Engagements
Engagements BAPs may perform the following financial reporting engagements:
- Compilation engagements for all types of entities i.e. Preparing financial statements for companies, close corporations, trusts, body corporates, partnerships and sole proprietors
- Reporting services prescribed by statute
- Accounting officer reports for close corporations
- Accounting officer reports for body corporates
- Accounting officer reports for trusts
- Accounting officer reports for schools
- Accounting officer reports for insurance intermediaries
- Accounting officer reports for non-profit organisations
- Accounting officer reports for credit providers
- Accounting officer reports for co-operatives
- Accounting officer reports for fund-raising organisations
- Accounting officer reports for the National Lottery Board
- Accounting officer B-BBEE certificates for exempt micro enterprises
- Independent review engagements for companies with a Public Interest Score (PIS) below 100
Engagements BAPs may not perform:
The following acts, regulations and policies require the appointment of an auditor or members of a particular professional body to issue a report on financial information.
SAIBA members and BAPs may not issue these reports:
(The list is not complete and will be updated. SAIBA continuously engage with relevant regulators and departments to obtain additional recognition for SAIBA members.)
- Enterprise Investment Programme: Manufacturing Investment
- Tourism support
- Auditor of companies and other entities
- Executor of deceased estates
- Attorneys trust accounts
- Independent reviewer of non-owner managed companies with a PIS of between 100 and 349
- Estate agents trust accounts
- Travel agents and travel agencies
- Agricultural produce agents
- B-BBEE verification agents for measured entities
- Sheriffs of the courts
- Drought scheme for farmers
- Honorary auditor for club, institute or association
SAIBA Guide to Independent Review Engagements
SAIBA Member Guide to Accounting Officer Reporting Engagements
SAIBA members that have obtained the designation Business Accountant in Practice (BAP) are recognised as accounting officers.
An accounting officer is a person who meets the qualification requirements as detailed in section 60 of the Close Corporations Act, 1984 and as a result, may issue an accounting officer and other reports on the financial statements and information of close corporations and other entities. Broadly speaking, to qualify as an accounting officer, a person must be a member of a recognised professional body, which, as a condition of membership, requires relevant subjects in accounting and enforces a code of conduct.
Accounting officers have statutory recognition to issue specific types of reports on financial statements and other information. The various statues that provide this recognition are explained and discussed in this Guide.
However, most, if not all of the relevant statutes do not stipulate how a member in practice should perform a reporting engagement. A member and his/her client should therefore determine the scope, extent, and result of the work by way of a contract.
In the absence of a clear agreement a member’s engagement risk will increase significantly.
The purpose of this Guide is to assist members in practice to establish an engagement framework that can be applied when issuing accounting officer or similar reports on financial statements.
Accounting officer for close corporation and companies
A BAP(SA) may be appointed to act as accounting officer for multiple types of entities including close corporations, schools, sectional titles, and many others. The attached Guide explains these appointments in more detail. In addition, an accounting officer appointment may be either a statutory requirement or a voluntary appointment. This means that, for example, a company may request a BAP(SA) to perform accounting officer duties for the company. This is not a statutory requirement, but a voluntary contract entered into between the company and the BAP(SA). In such cases the engagement letter will stipulate that the BAP(SA) is requested to perform the same duties as he/she would perform for a close corporation. The accounting officer will simply report to the company and not the close corporation.
- Handbook of International Quality Control, Auditing, Review, Other Assurance and Related Services