Auditing Profession Amendment Bill [B ]

Transcription

1 Auditing Profession Amendment Bill [B ] Briefing of Standing Committee on Finance National Assembly 3 February 2015 Delegation: Ms Karen Maree, Chief Director: Accounting Policies, Standards & Support Services & Adv Empie van Schoor, Chief Director: Legislation, NT Ms Laine Katzin, Director & Mr Robert Zwane, Manager, Education Training and Professional Development Department. IRBA

2 Outline of presentation Background Objects of Amendment Bill Main features of proposed amendments 2

3 Background (1) Auditing Profession Act, 2005 (APA) established Independent Regulatory Board for Auditors - IRBA provides for education, training & professional development of auditors provides for accreditation of profession bodies of registered auditors or both accountants & registered auditors provides for registration of auditors regulates conduct of registered auditors 3

4 Background (2) Current steps to become registered auditor Obtain degree, serve as articled clerk ito training contract, complete Public Practice Examination & register as auditor Currently candidate who successfully completes Public Practice Examination may register with IRBA to become registered auditor Process for becoming registered auditor to change because of termination of Public Practice Examination In future, 1 st time candidates intending to write final assessment for qualification as Chartered Accountant (CA) will have to write Assessment of Professional Competence of SA Institute of Chartered Accountants 4

5 Background (3) Assessment of Professional Competence is general assessment of competence required for CA and not assessment of audit competence IRBA replacing Public Private Examination with Audit Development Programme Aspiring auditor becomes candidate auditor before registration as auditor Period of specialisation by professional accountants who want to become registered auditors Programme aims to consolidate & refine capabilities developed during training programme ito training contract Occurs in more complex learning environment & performs roles more senior to those undertaken in current training 5

6 Background (4) Audit Development Programme is to commence in 2015 Envisage to register first candidate auditors in March 2015 Current Auditing Profession Act does not regulate candidate auditors Amendment Bill proposes to authorise IRBA to register candidate auditors Undergo specialist training before CAs become registered auditors subject to IRBA s regulation as candidate auditors 6

7 Background (5) Audit Development Programme (ADP) for candidate auditors coincide with what already happens in practice Most qualified CAs at firms work for many years before they are made partner and are required to register as auditors ADP provides framework for specialist period of training as auditor to ensure work exposure at more senior level than articles under supervision of registered auditor Firm must provide candidate auditor with required skills & competencies to register as auditor Requires closer relationship between candidate, oversight auditor & IRMA to ensure more mature auditor 7

8 Background (6) IRBA must ensure that profession skills & competence are responsive to needs of public in manner that protects public No additional exam at end of ADP Candidate must submit portfolio of evidence of work undertaken for ADP 8

9 Objects of Bill Objects of Amendment Bill provide for regulation of candidate auditors update references to Companies Act (1973 Act replaced by 2008 Act) 9

10 Main features of proposed amendments (1) - clauses 1-5, 7, 8, 10, 12 & 13 of Bill Amendments regarding candidate auditors define candidate auditors as individuals who have obtained professional accountant designation from accredited professional body and served under supervision of registered auditor include candidate auditors in requirements for registration place them under IRBA s responsibility in matters of discipline to ensure protection of public give registered candidate auditors practical exposure to wide range of matters faced by registered auditors 10

11 Main features of proposed amendments (2) clauses 6, 9 & 11 of Bill Amendments regarding Companies Act Definition of Companies Act in section 1 of APA Cross-references to provisions of Companies Act in section 38 of APA - registration of firms as registered auditors section 41 of APA public practice as registered auditor section 47 of APA IRBA s inspection of practice registered auditor that audits public company 11

12 Ri a livhuwa/enkosi/siyabonga/ Re a leboga/dankie/thank you