3) Companies Regulations & APA

Question 1

who does the Companies Regulations require to be audited?

Answer 1

• holds assets > R5million
• if a NPC involved with the state
• PIS > 350

Question 2

how to calculate the PIS as per Companies Regulations?

Answer 2

1 point per

• employee
• R1m of turnover
• R1m in third part liability
• shareholder

Question 3

what does the APA contain?

Answer 3

rights and duties of auditors

Question 4

what is a reportable irregularity?

Answer 4

an:

• unlawful act/omission
• committed by mgmt
• which is likely to cause material financial loss to the entity, is fraudulent or amounts to theft, represents a breach of fiduciary

Question 5

what responsibilities does the auditor have in terms of RIs?

Answer 5

• determine if there is one (as per definition)

- report it if there is one

Question 6

what steps must the auditor take when they determine that an RI exists?

Answer 6

• send a written report detailing RI to regulatory board
• within 3 days of notifying board, notify BoD that they have sent the report to IRBA and share a copy with them
• ## discuss the issue with BoD and present them with the evidence, give them opportunity to make representations, send a second report to IRBA after this to confirm if opinion changes (no more RI / steps are being taken to eliminate it) or it still exists; within 30 days