Auditing Profession Amendment Act Review

These flashcards cover key terms and concepts related to the Auditing Profession Amendment Act and its implications for the auditing profession.

Auditing Profession Amendment Act

An act designed to regulate the auditing profession in South Africa and establish the Independent Regulatory Board for Auditors (IRBA).

Independent Regulatory Board for Auditors (IRBA)

The body responsible for overseeing the auditing profession in South Africa, as created by the Auditing Profession Amendment Act.

Registered Auditor (RA)

An individual who is registered with IRBA and entitled to conduct audits under the Auditing Profession Amendment Act.

King IV

A set of corporate governance principles and reporting standards in South Africa that outlines governance structures and practices.

Section 41: Practice

Specifies that only registered auditors can engage in public practice and outlines the definition of an audit.

Reportable Irregularity (RI)

Any unlawful act or omission committed by any person responsible for management which causes financial loss or represents a material breach of fiduciary duty.

Section 46: Limitation of Liability

Defines the circumstances under which a registered auditor may incur liability to a client or third party for opinions or reports expressed.

Chapter II: Functions of IRBA

Outlines the powers and responsibilities of IRBA, including accreditation and registration, promoting integrity in the profession, and ensuring compliance with standards.

Material Breach

An obligation that is not fulfilled by a party in a fiduciary relationship, impacting their duty to act in the best interests of another party.

Accreditation and Registration

The process by which individuals and firms are certified as qualified auditors, regulated by IRBA.