Public Audit Act, 2004 (Act No. 25 of 2004)

Notices

General Directive

Notice No. 645 of 2007
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Notice No. 645

25 May 2007

 

 

Under the powers vested in me by section 2 of the Public Audit Act, 2004 (Act No. 25 of 2004) (hereafter referred to as the PAA), I, Terence Mncedisi Nombembe, Auditor-General of the Republic of South Africa, hereby determine the following:

 

1)Audits of public entities listed in the Public Finance Management Act, 1999 (Act No. 1 of 1999) and any other institutions envisaged by section 4(3)(b) of the PAA

 

In terms of section 25(1)(a) of the PAA, unless advised otherwise prior to this announcement, I have opted not to perform any audits of institutions referred to in section 4(3) of the PAA for the 2007-08 financial year.

 

All auditees may therefore proceed to appoint their own auditors, only for the 2007-08 financial year (section 25(4)). In this connection the document: Consultation of the Auditor-General (AG) on the appointment of an auditor attached hereto should be completed as indicated.

 

2)Duties of auditors in public practice in terms of chapter 3 of the PAA

 

Auditors in public practice appointed to audit public sector entities in terms of section 25(1)(b) should take cognisance of their duties and powers and other matters contained in sections 25 to 28 of the PAA.

 

3)Audit reports - section 28 of the PAA

 

Where I have opted not to perform an audit in terms of section 25, the appointed auditor must furnish me with a copy of the audit report as prescribed by section 28 and the audited financial statements of the auditee no later than 31 July and the annual report by 31 August following the financial year-end.

 

4)Auditing of performance information - section 28 of the PAA

 

The attention of auditors in public practice is drawn to the separate notice I have issued on the auditing of performance information and the requirement that they must comply therewith.

 

5)Complaints against the Auditor-General - section 13(1)(c) of the PAA

 

The interim policy and process to be followed for complaints against the AG is attached to this notice.

 

6)Compliance with any applicable legislation relating to financial matters, financial management and other related matters - sections 20(2)(b) and 28(1)(b) of the PAA

 

In terms of sections 20(2)(b) and 28(1)(b) of the PAA, an audit report must reflect an opinion or conclusion on the auditee’s compliance with any applicable legislation relating to financial matters, financial management and other related matters.

 

I have determined that, until further information is published in this respect, no separate opinion or conclusion as envisaged above should be included in the audit reports. Conclusions in this regard will be reached as part of the financial auditing process in terms of International Auditing Standard (ISA) 250.

 

Additional reporting on compliance with applicable legislation (not directly impacting on the opinion on the financial statements) in terms of the Public Sector Perspective in ISA 250, with specific reference to ISA study 3, and ISA 700R paragraph 45, will appear under "Other matters" in the audit report.

 

Any enquiry related to this notice should be addressed to the following office:

 

J H van Schalkwyk

Business Executive: Audit Research and Development

The Auditor-General

Tel: (012) 422 9823

Fax (012) 422 9822

Email: [email protected]

 

 

Signed and approved:

 

 

 

T M Nombembe

Auditor-General