Auditing Profession Act, 2005 (Act No. 26 of 2005)Board NoticesIndependent Regulatory Board for AuditorsNew Rules Regarding Improper Conduct and Code of Professional Conduct for Registered AuditorsCode of Professional Conduct for Registered AuditorsPart A : General Application of the CodeSection 150 : Professional Behaviour |
| 150.1 | The principle of professional behaviour imposes an obligation on all registered auditors to comply with relevant laws and regulations and avoid any action that the registered auditor knows or should know may discredit the profession. This includes actions that a reasonable and informed third party, weighing all the specific facts and circumstances available to the registered auditor at that time, would be likely to conclude adversely affects the good reputation of the profession. |
| 150.2 | In marketing and promoting themselves and their work, registered auditors shall not bring the profession into disrepute. Registered auditors shall be honest and truthful and not: |
| (a) | Make exaggerated claims for the services they are able to offer, the qualifications they possess, or experience they have gained; or |
| (b) | Make disparaging references or unsubstantiated comparisons to the work of others. |
Multiple firms
| 150.3 | An individual registered auditor is permitted to be a member of more than one registered audit firm and some other type of professional firm providing professional services. It is also permissible to practice under different firm names for different offices, provided this does not mislead. |
| 150.4 | Individual registered auditors who are members of registered audit firms as well as being members of other accounting or consulting firms that provide professional services and have individual members who are not registered auditors, must ensure there is a clear distinction between the different firms and the members thereof, and that they do not unwittingly contravene section 41(2) of the Act, or cause it to be contravened by the members of those other accounting or consulting firms who are not individual registered auditors. |
Signing convention for Reports or Certificates
| 150.5 | A registered auditor shall not delegate to any person who is not a partner, or fellow director, the power to sign audit, review or other assurance reports or certificates that are required, in terms of any law or regulation, to be signed by the, registered auditor responsible for the engagement. In specific cases where emergencies of sufficient gravity arise, however, this prohibition may be relaxed, provided the full circumstances giving rise to the need for delegation are reported both to the client of the registered auditor concerned and to the Regulatory Board. |
| 150.6 | The individual registered auditor responsible for the audit, review or other assurance engagement9 shall, when signing any audit, review or other assurance report or certificate, reflect the following: |
| (a) | the individual registered auditor’s full name; |
| (b) | if not a sole proprietor, the capacity in which they are signing, namely as the 'partner' or 'director'; |
| (c) | the designation 'Registered Auditor' underneath their name; and |
| (d) | if not set out on the firm's letterhead, the name of the registered auditor’s firm. |
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9 Section 44(1)(a)