Auditing Profession Act, 2005 (Act No. 26 of 2005)Policy and ProceduresPolicy and Procedures relating to Continuing Education, Training and Professional Development prescribed in terms of Section 7(1)(C) of the Auditing Profession Act, 26 of 20051. Introduction |
| 1.1 | The professional competence required to perform the role of a Registered Auditor (RA), continuously evolves and develops. Due to the dynamic environment in which RAs function, the competence demonstrated at entry to the profession is likely to lose relevance and accordingly, require modification over time. Therefore, RAs are expected to develop and maintain relevant professional competence as they anticipate and adapt to changes in processes, technology, professional standards, regulatory requirements and client demands. |
| 1.2 | Continuing Professional Development (CPD) is the means by which members of a profession develop and maintain professional competence to perform their current and future roles. |
| 1.3 | The CPD policy and procedures is aligned to International Education Standard 7, Continuing Professional Development (IES 7 Revised), issued by the International Accounting Education Standards Board (IAESB) to strengthen public trust in the accountancy profession. IES 7 (Revised) prescribes CPD for professional accountants to develop and maintain the professional competence necessary to provide high-quality services to clients, employers and other stakeholders. |
| 1.4 | Section 6(1)(a) of the Auditing Profession Act, 2005 (Act No. 26 of 2005(as amended)) (“the Act”), mandates the IRBA to prescribe minimum qualifications, competency standards and requirements for the registration of auditors. Flowing from this duty to ensure competence at entry point to the profession, the IRBA has a similar responsibility to ensure that those persons who are registered, continue to develop and maintain their professional competence throughout their professional lives in terms of section 7(1)(c) of Act No. 26 of 2005 (as amended). |
| 1.5 | Section 7(1)(f) of the Act requires the IRBA to prescribe competency requirements, and these are not only relevant at entry point but throughout the period of registration as an RA. In particular, section 7(1)(c) of the Act requires the IRBA to prescribe requirements for and conditions relating to the nature and extent of continued education, training and professional development. |
| 1.6 | In terms of the IRBA Code of Professional Conduct for Registered Auditors, RAs have a duty to attain and maintain professional knowledge and skill at the level required to ensure that clients receive competent professional services, based on current technical and professional standards and relevant legislation. This duty has a direct consequence on an RA’s responsibility to act in the public interest. |
| 1.7 | Professional competence as described in paragraph A2 of IES 7 (Revised) is the ability to perform a role to a defined standard. Professional competence goes beyond the knowledge of principles, standards, concepts, facts, and procedures, it is the integration and application of learning outcomes for: |
| (a) | technical competence; |
| (b) | professional skills; and |
| (c) | professional values, ethics and attitudes. |
| 1.8 | CPD plays an important part in contributing to the development and maintenance of professional competence of an RA, thereby strengthening public confidence and trust in the profession through their work. |