• Register
Return to: Home > News > Standards > 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

    Choosing the right location can have cast-iron benefits

    As Game of Thrones, one of the biggest television shows of all time, comes to an end, Joe Pickard looks at how tax incentives offered to television and film production companies help the wider economy.

    read more

    Primary financial statements: a game changer in reporting?

    International Accounting Standards Board chair Hans Hoogervorst delivered a speech at the Seminario International sobre NIIF y NIF, organised by the Consejo Mexicano de Normas de Información Financiera in Mexico. The Accountant presents the highlights.

    read more

    FASB readies standards for the netflix generation

    The US Financial Accounting Standards Board (FASB) has updated its accounting standard for entertainment, with a specific eye on keeping up to date with how episodic content, such as television programmes, is consumed in the modern world. Jonathan Minter reports.

    read more

    Brexit: why it takes two to tango

    Former TA editor Vincent Huck, now editor of Insurance Asset Risk, looks at why Brexit might unleash geopolitical intrigue in Europe’s accounting standard-setting scene – and why IFRS 17 will be an incredible source of opportunity for firms in the coming years.

    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.