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QUESTIONS & ANSWERS FOR AUDITORS & ACCOUNTANTS
ON THE COMPANIES ACT 1st Edition
A5 BOOK ±530 PAGES - Over 365 Questions on the New Companies Act & Auditing Profession Act Answered!
SOME OF THE QUESTIONS ANSWERED
Ÿ
INCLUDED IN THE AUDIT WHICH DO NOT CONSTITUTE AUDIT SERVICES AS
UNDERSTOOD IN THE CONTEXT OF COMPANIES ACT 2008?
Ÿ WHO IS QUALIFIED TO CONDUCT AN AUDIT?
Ÿ WHAT DOES THE TERM “REPORTABLE IRREGULARITY” MEAN IN TERMS OF THE
AUDITING PROFESSION ACT 2005 AND THE COMPANIES REGULATIONS?
Ÿ DOES THE CONCEPT OF ACCOUNTABILITY AND TRANSPARENCY APPLY TO ALL
COMPANIES REGARDLESS OF SIZE?
Ÿ WHEN DOES THE FIRST FINANCIAL YEAR OF A COMPANY BEGIN?
Ÿ WHEN DOES THE FIRST FINANCIAL YEAR OF A COMPANY END?
Ÿ MAY A COMPANY SECRETARY CHANGE THE FINANCIAL YEAR END OF A COMPANY?
Ÿ WHAT ARE THE REQUIREMENTS FOR THE CHANGE OF A FINANCIAL YEAR END?
Ÿ WHAT IS THE STATUTORY INFORMATION REQUIRED IN ORDER TO DEREGISTER A
CLOSE CORPORATION?
Ÿ WHAT ARE THE REQUIREMENTS THAT A RE-INSTATEMENT APPLICATION OF A
COMPANY AND A CLOSE CORPORATION MUST COMPLY WITH?
Ÿ WHAT DOES THE ACCOUNTING RECORDS OF A NON-PROFIT COMPANY INCLUDE?
Ÿ WHAT DOES THE ACCOUNTING RECORDS OF A CLOSE CORPORATION INCLUDE?
Ÿ WHAT DOES THE FINANCIAL STATEMENTS OF A COMPANY INCLUDE?
Ÿ WHAT ARE THE TEN REQUIREMENTS FINANCIAL STATEMENTS MUST MEET IN TERMS
OF SECTION 29 OF COMPANIES ACT 2008?
Ÿ WHAT ARE THE THREE STATUTORY PROHIBITIONS ON FINANCIAL STATEMENTS?
Ÿ WHAT ARE THE FIVE NOTICES THAT A SUMMARY OF FINANCIAL STATEMENTS MUST
BEAR ON THE FIRST PAGE OF THE SUMMARY?
Ÿ IS THE SIGNING OFF BY AN AUDITOR OF A COMPANY'S FINANCIAL STATEMENTS
STILL AN AUTOMATIC REQUIREMENT?
Ÿ WHAT DOES “INTERNAL COMPILATION” MEAN?
Ÿ WHAT DOES “INDEPENDENTLY COMPILED AND REPORTED MEAN”?
Ÿ WHAT ARE THE THREE REQUIREMENTS WHICH MUST BE MET BEFORE THE ANNUAL
FINANCIAL STATEMENTS OF A COMPANY IS CONSIDERED TO BE INDEPENDENTLY
COMPILED AND REPORTED?
Ÿ WHAT ACCOUNTING STANDARDS (FINANCIAL REPORTING STANDARDS) APPLIES TO
A PRIVATE COMPANY WITH A PUBLIC INTEREST SCORE OF LESS THAN 350, AND THE
FINANCIAL STATEMENTS ARE INDEPENDENTLY COMPILED?
Ÿ WHAT ARE THE SIX REQUIREMENTS OF FINANCIAL STATEMENTS IN TERMS OF
SECTION 29 OF COMPANIES ACT 2008?
Ÿ UNDER WHAT CIRCUMSTANCES MUST THE AFS OF A COMPANY AND CLOSE
CORPORATION BE AUDITED?
Ÿ UNDER WHAT CIRCUMSTANCES MUST THE AFS OF A COMPANY AND CLOSE
CORPORATION BE INDEPENDENTLY REVIEWED?
Ÿ MAY A COMPANY PREPARE ANNUAL FINANCIAL STATEMENTS IN A SHORTER PERIOD
AS OPPOSED TO THE STATUTORY PERIOD AS OPPOSED TO THE STATUTORY PERIOD
OF PREPARING ANNUAL FINANCIAL STATEMENTS WITHIN SIX MONTHS AFTER THE
END OF ITS FINANCIAL YEAR?
Ÿ WHAT IS A STATUTORY (NON-VOLUNTARY) AUDIT AND A NON-STATUTORY
(VOLUNTARY) AUDIT?
Ÿ IN WHAT INSTANCES DOES THE EXEMPTION FOR A COMPANY OR CLOSE
CORPORATION TO BE AUDITED NOT APPLY?
Ÿ MAY ANY COMPANY DIRECTOR SIGN THE ANNUAL FINANCIAL STATEMENTS OF THEIR
COMPANY?
Ÿ IS A COMPANY WHO HAS COMPILED ITS ANNUAL FINANCIAL STATEMENTS
INTERNALLY, OBLIGED TO PREPARE CONSOLIDATED ANNUAL FINANCIAL
STATEMENTS?
Ÿ WHAT TYPES OF REMUNERATION MUST BE INCLUDED IN THE REMUNERATION
REPORTS OF ANNUAL FINANCIAL STATEMENTS OF COMPANIES?
Ÿ HOW DOES ONE DECIDE WHETHER A COMPANY IS AN OWNER-MANAGED COMPANY
IN TERMS OF SECTION 30(2A) OF COMPANIES ACT 2008?
Ÿ UNDER WHAT CIRCUMSTANCES IS AN OWNER-MANAGED COMPANY EXEMPT FROM
HAVING ITS ANNUAL FINANCIAL STATEMENTS INDEPENDENTLY REVIEWED?
Ÿ WHAT DOES “IFRS” AND “IFRS FOR SMES” MEAN?
Ÿ WHAT DOES “ISRE 2400” MEAN?
Ÿ WHERE IN THE ANNUAL FINANCIAL STATEMENTS MUST THE AUDIT COMMITTEE
REPORT BE INCLUDED?
Ÿ WHAT IS THE AUDIT TENURE DISCLOSURE RULE WHICH HAS BEEN PRESCRIBED BY
THE INDEPENDENT REGULATORY BOARD FOR AUDITORS (IRBA) AND PUBLISHED IN
GOVERNMENT GAZETTE 39475 OF 4 DECEMBER 2015?
Ÿ FOR WHICH ENTITIES ARE REGISTERED AUDITORS REQUIRED TO DISCLOSE AUDIT
TENURE IN THEIR AUDIT REPORTS?
WHAT IS MEANT BY “NON-AUDIT SERVICES”? WHAT SERVICES ARE GENERALLY
Ÿ
AFRICA?
Ÿ WHAT ARE THE CONCERNS REGARDING MANDATORY AUDIT FIRM ROTATION
(MAFR)?
Ÿ IF A FIRM HAS MULTIPLE AUDITORS, IS IT ONLY THE INDIVIDUAL AUDITOR THAT
NEEDS TO ROTATE, OR DOES SECTION 92 OF COMPANIES ACT 2008 APPLY TO THE
FIRM AS WELL?
Ÿ WHAT IMPACT DOES THE COMPANIES ACT 2008 HAVE ON THE ROTATION OF
AUDITORS?
Ÿ DOES AUDITOR ROTATION APPLY TO TRUSTS?
Ÿ DOES AUDITOR ROTATION APPLY TO CLOSE CORPORATIONS?
Ÿ WHEN DOES THE FIVE YEARS CONTEMPLATED IN SECTION 92 OF COMPANIES ACT
2008 COMMENCE?
Ÿ WHAT IS AN ILLUSTRATIVE EXAMPLE OF AN INDEPENDENT AUDITOR'S REPORT
CONTAINING THE MANDATORY DISCLOSURE OF AUDIT TENURE?
Ÿ SECTION 41(6)(C) OF THE AUDITING PROFESSION ACT 26 OF 2005 STIPULATES
THAT A REGISTERED AUDITOR MAY NOT PERFORM AUDITS UNLESS ADEQUATE RISK
MANAGEMENT AND PROCEDURES ARE IN PLACE. WHAT IS A RISK MANAGEMENT
PLAN?
Ÿ WHO APPOINTS THE AUDITOR OF A COMPANY?
Ÿ WHICH PROFESSIONAL SERVICES MAY AN AUDITOR OF A COMPANY NOT PERFORM?
Ÿ WHAT ARE THE REQUIREMENTS PRESCRIBED BY COMPANIES ACT 2008 WHICH
MUST BE ADHERED TO BY ACCOUNTING PROFESSIONAL BODIES?
Ÿ MAY AN EXISTING ACCOUNTANT RETAIN DOCUMENTS OF A CLIENT WHO HAS NOT
PAID THE FEES OWING TO HIM?
Ÿ WHAT ARE THE CIRCUMSTANCES WHERE A REGISTERED AUDITOR MAY BE
REQUIRED TO DISCLOSE CONFIDENTIAL INFORMATION OF A CLIENT?
Ÿ WHEN DOES THE OBLIGATION TO REPORT A REPORTABLE IRREGULARITY ARISE?
Ÿ UNDER WHAT CIRCUMSTANCES DOES A REGISTERED AUDITOR INCUR LIABILITY IN
TERMS OF THE AUDITING PROFESSION ACT, 26 OF 2005, AS AMENDED AND WHEN
DOES A REGISTERED AUDITOR INCUR LIABILITY IN TERMS OF THE COMPANIES ACT,
71 OF 2008, AS AMENDED?
Ÿ IS AN AUDITOR ALLOWED TO PERFORM AN AUDIT WHERE HE HAS PREVIOUSLY
PREPARED A CLIENT'S FINANCIAL STATEMENTS?
Ÿ UNDER WHAT CIRCUMSTANCES DOES THE REGISTRATION OF A REGISTERED
AUDITOR AUTOMATICALLY LAPSE?
Ÿ WHAT ARE KEY AUDIT MATTERS (KAM) AND HOW WILL AUDITORS DETERMINE KEY
AUDIT MATTERS?
Ÿ MAY A REGISTERED AUDITOR WHO IS NOT IN PUBLIC PRACTICE PRACTISE AS A
MEMBER OF A FIRM WHO IS NOT A REGISTERED AUDITOR?
Ÿ BEFORE A REGISTERED AUDITOR EXPRESSES ANY OPINION THAT FINANCIAL
STATEMENTS FAIRLY PRESENTS THE FINANCIAL POSITION OF THE ENTITY AND ARE
PROPERLY PREPARED, THE AUDITOR MUST BE SATISFIED THAT THE STATUTORY
CRITERIA RELATING TO THE AUDIT HAS BEEN MET. WHAT ARE THESE STATUTORY
CRITERIA?
Ÿ ACCOUNTING RECORDS OF A PROFIT COMPANY, NON-PROFIT COMPANY AND CLOSE
CORPORATION
Ÿ CIRCUMSTANCES UNDER WHICH THE AFS OF A COMPANY OR CLOSE CORPORATION
MUST BE AUDITED
Ÿ CIRCUMSTANCES UNDER WHICH THE AFS OF A COMPANY OR CLOSE CORPORATION
MUST BE INDEPENDENTLY REVIEWED
Ÿ FINANCIAL REPORTING STANDARDS FOR THE FINANCIAL STATEMENTS OF STATE-
OWNED COMPANIES, PUBLIC COMPANIES LISTED ON AN EXCHANGE AND PUBLIC
COMPANIES NOT LISTED ON AN EXCHANGE, PROFIT COMPANIES OTHER THAN
STATE-OWNED COMPANIES OR PUBLIC COMPANIES, NON-PROFIT COMPANIES AND
CLOSE CORPORATIONS
Ÿ AUDITOR'S DUTIES IN RELATION TO AN AUDIT AND TO REPORT ON IRREGULARITIES
Ÿ DUTIES AND LIABILITIES OF THE REGISTERED AUDITOR IN TERMS OF THE
COMPANIES ACT 71 OF 2008 AS AMENDED, AND THE AUDITING PROFESSION ACT 26
OF 2005 AS AMENDED
Ÿ KEY DIFFERENCES BETWEEN THE COMPANIES ACT, ACT 71 OF 2008, AS AMENDED
AND THE AUDITING PROFESSION ACT, ACT 26 OF 2005, AS AMENDED
Ÿ RECOGNISED PROFESSIONS FOR ACCOUNTANTS, AUDITORS AND ACCOUNTING
OFFICERS
Ÿ COMPANY AND CLOSE CORPORATION PRESCRIBED FORMS FROM THE CIPC AND
THEIR RESPECTIVE DESCRIPTION AND FEES
Ÿ
HOW IS MANDATORY AUDIT FIRM ROTATION (MAFR) BEEN IMPLEMENTED IN SOUTH
APPENDICES PLUS THE AUDITING PROFESSION ACT, AS AMENDED
PLUS THE AUDITING PROFESSION ACT, NO. 26 OF
2005 INCLUDING THE AMENDMENTS FROM THE AUDITING
PROFESSION AMENDMENT ACT, NO. 2 OF 2015