SOUTHERN SOCIETY OF CHARTERED ACCOUNTANTS
Submission from the Regional Technical Advisory Committee Meeting (No.14)
Paper :IAASB ED – International Framework for Assurance Engagements
Date : Thursday 19th June 2003
Reporter : Richard Davis
The committee has reviewed the noted document at their meeting on the above date and have made the following comments:
The definition of assurance engagements given in paragraph 6 was widely debated. Whilst it was considered that a more concise definition would be preferable we could see why all the relevant parts of the definition had been included and we could not come up with a better all encompassing phrase.
Paragraph 7 looks to be out of place. It is unclear whether this is a restriction on what we can ethically do, the work having to be within our expertise, or is this a qualification on the definition above. If this is an ethical issue then it should not be placed in this part of the document. It is suggested that this part of paragraph 7 is removed.
We agreed with the concept of paragraph 10. Is it possible to use a standard non-assurance paragraph so that clients would get to understand the status of the report given.
Other general comments were as follows:
The issuing of assurance reports is not a restricted area and in our view it would be necessary for such reports to be made by suitably qualified or appropriately recognised individual. This would be a good opportunity to restrict the work in an area of accountancy to those who can be regulated and whose competency can be checked. Does paragraph 14 effectively cover this or is this something that requires legislation.
The committee also felt that it was good to have the area of non-audit assurance engagements formally set out and controls put in place.
R Davis - Secretary