• Register
Return to: Home > News > Big Four > South African Institute finds new auditor’s report more informative and transparent

South African Institute finds new auditor’s report more informative and transparent

The South African Institute of Chartered Accountants (SAICA) has published a report providing an overview and analysis of the first batch of auditors’ reports issued in compliance with the new and revised auditor reporting and related auditing standards.

In South Africa, the Big Four have been early adopters of the standards and so far have issued auditor reports for nine listed entities. In its overview, SAICA found that the changes made the auditors’ report more transparent and informative.

In particular, SAICA highlighted the communication of key audit matter (KAM) as a prominent change with respect to transparency and enhanced information. KAM are the matters that were of most significance in the audit according to the auditors’ professional judgement.

There were 30 KAM communicated in the first nine reports. While the KAM subject reported was different by each entity, the most common ones were related to the valuation/impairment of goodwill and intangible assets, the valuation of property plant and equipment, and deferred taxation and income tax.

SAICA senior executive for assurance and practice Willie Botha summarised: “The auditor's report is more informative and transparent about the audit that has been performed. It enables a better understanding by the users of financial statements of the auditor's responsibilities, work effort and the outputs of the audit process as well as an enhanced perspective about the audited financial statements. The relevance and value of the external audit are enhanced by adding to users' confidence in the entity's financial reporting as well as the audit.”

SAICA’s early auditor adopter report can be accessed here.

Top Content

    Blockchain and the Big Four: does it deserve all the hype?

    Although still in its infancy, blockchain is one of the most talked-about technologies of 2018. Will the blockchain bubble burst, or will it live up to its reputation as the ‘new internet’? Eleanor Jerome investigates

    read more

    Malaysia: Ready to show its strength

    Recent changes have enhanced the quality of audit reports in Malaysia, giving the profession a welcome opportunity to demonstrate its value to clients. Paul Golden reports

    read more

    China: Regulating the Chinese dragon

    Harsh regulatory actions and looming US trade wars have been dampening expectations in a Chinese market still full of potential, finds Jonathan Minter

    read more

    Indigenous Australians: New checks and balances

    With fewer than 40 known qualified Indigenous Australian accountants, Jonathan Minter speaks to Shelley Cable from PwC Australia about how increasing this number is an important part of improving the financial literacy of Indigenous communities

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.