The auditing standards have been redrafted in accordance with the International Auditing and Assurance Standards Board’s (IAASB) new drafting conventions designed to enhance the clarity of its pronouncements. In July 2007, the IAASB approved for public comment the following exposure drafts of proposed International Standards on Auditing (ISA):

* ISA 510 (Redrafted) – Initial Audit Engagements: Opening Balances

* ISA 530 (Redrafted) – Audit Sampling and Other Means of Testing

The due date for comment on ISA 510 and ISA 530 is 15 October 2007.

* ISA 700 (Redrafted) – The Independent Auditor’s Report on General Purpose Financial Statements.

* ISA 705 (Revised and Redrafted) – Modifications to the Opinion in the Independent Auditor’s Report

* ISA 706 (Revised and Redrafted) – Emphasis of Matter Paragraphs and Other Matterfs) Paragraphs in the Independent Auditor’s Report

* ISA 800 (Revised and Redrafted) – Special Considerations – Audits of Special Purpose Financial Statements and Specific Elements, Accounts or Items of a Financial Statement.

* ISA 805 (Revised and Redrafted) – Engagements to Report on Summary Financial Statements.

The due date for comment for ISA 700, ISA 705, ISA 706, ISA 800 and ISA 805 is 15 November 2007.

* ISA 220 (Redrafted) – Quality Control for Audits of Historical Financial Information.

* International Standards on Quality Control (ISQC) 1 – Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.

The due date for comment for ISA 220 and ISQC 1 is 14 December 2007.

The Independent Regulatory Board for Auditors (IRBA) invites comment on the above by the deadline dates. The exposure drafts may be viewed on the IRBA website (


In terms of the Attorneys’ Act No. 53 of 1979 and the Rules of the Provincial Law Societies, auditors are required to report on their audit of attorneys’ trust accounts by 31 August each year.

The IRBA commenced with the process of updating the current guidance contained in the SAICA Guide, Guidance for Auditors: The Audit of Attorneys’ trust accounts in terms of the Attorneys’Act, No 53 of 1979 and the Applicable Rules ofthe Provincial Law Societies, which guidance will be applicable for audits for the year ended 31 August 2008. A consultation process is being followed, which involves meeting with representatives of the Law Society of South Africa, the Attorney’s Fidelity Fund and the respective Provincial Law Societies and Registered Auditors in order to identify amendments required to the guidance and the Rules of the Provincial Law Societies.

The need for updating the existing guidance has risen due to the adoption of the ISAs in South Africa, new legislation affecting auditors, and other dvelopments in reporting standards. The current rules of the law societies still refer to South African Auditing Standards, which were withdrawn on adotion of the International Standards on Auditing

The changes to the audit report are an interim measure until such time as the guidance has been updated and does not affect either the nature of the engagement to audit attorney’s trust accounts or the level of assurance expressed in an audit report.

This auditor’s report may be viewed on the IRBA website. Queries on this report should be sent to the IRBA.

Copyright South African Institute of Chartered Accountants Nov 2007

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