Regulatory Alerts2017-07-28
D2/2017: Communication of Key Audit Matters in the Independent Auditor's Report
The South African Reserve Bank directs auditors of banks and controlling companies to submit Key Audit Matters prior to finalizing audit opinions for financial periods ending on or after 15 July 2017. This pre-communication requirement allows the regulator to assess whether disclosure risks outweigh public interest benefits, while auditors retain ultimate responsibility and coordinate submission logistics during annual prudential engagements. The directive confirms that International Standard on Auditing 701 applies to listed bank audits without legislative scope amendments, and permits unlisted banks' auditors to voluntarily report Key Audit Matters unless legally precluded.
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