Auditing Profession Act, 2005 (Act No. 26 of 2005)Chapter II : Independent Regulatory Board for AuditorsPart 5 : Committees of Regulatory Board22. Committee for auditing standards |
| (1) | The committee for auditing standards must consist of at least the following members appointed by the Regulatory Board: |
| (a) | Five registered auditors; |
| (b) | one person with experience of business; |
| (c) | an incumbent of the office of the Auditor-General, or a person nominated by that incumbent; |
| (d) | an incumbent of the office of the Executive Officer of the Financial Services Board, or a person nominated by that incumbent; |
| (e) | one person with experience in the teaching of auditing at a university recognised or established under the Higher Education Act, 1997 (Act No. 101 of 1997); |
| (f) | one person nominated by any stock exchange licensed under the Securities Services Act, 2004 (Act No. 36 of 2004); |
| (g) | the Commissioner of the South African Revenue Services established in terms of the South African Revenue Services Act, 1997 (Act No. 34 of 1997), or a person nominated by the Commissioner; and |
| (h) | an incumbent of the office of the Registrar of Banks, or a person nominated by that incumbent. |
| (2) | The committee for auditing standards must assist the Regulatory Board— |
| (a) | to develop, maintain, adopt, issue or prescribe auditing pronouncements; |
| (b) | to consider relevant international changes by monitoring developments by other auditing standard-setting bodies and sharing information where requested; and |
| (c) | to promote and ensure the relevance of auditing pronouncements by— |
| (i) | considering the needs of users of audit reports; |
| (ii) | liaising with the other committees of the Regulatory Board on standards to be maintained by registered auditors and by receiving feedback from such committees on areas where auditing pronouncements are needed; |
| (iii) | ensuring the greatest possible consistency between auditing pronouncements and accepted international pronouncements; and |
| (iv) | consulting with professional bodies on the direction and appropriateness of auditing pronouncements. |
| (3) | The committee for auditing standards may assist the Regulatory Board to influence the nature of international auditing pronouncements by— |
| (a) | preparing comment on exposure drafts or discussion papers and replies to questionnaires prepared by the International Auditing and Assurance Standards Board or a successor body; and |
| (b) | nominating representatives to committees of the International Auditing and Assurance Standards Board or a successor body when requested to do so by the Regulatory Board. |