Regulatory Alerts2017-05-08
Audit Implications of the Expected Credit Loss Model for Bank Auditors
The South African Reserve Bank issued Guidance Note 3/2017 to direct banks and their auditors on the audit implications of the Expected Credit Loss model under IFRS 9. The guidance mandates that auditors incorporate forward-looking macro-economic judgments and apply the IRBA Staff Audit Practice Alert to ensure consistent impairment assessments before the January 2018 effective date. Banks must return signed acknowledgements to the Registrar, while auditors are required to utilize the provided checklists and notes during their planning and execution of ECL audits.
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