Auditors’ improper conduct rules revised

The Independent Regulatory Board for Auditors (IRBA) has revised its rules on improper conduct, which will come into effect on 1 January 2020. Until then, rules in place since January 2011 will remain in force, notes CompliNEWS contributor Pam Saxby. Listing acts and omissions to be regarded as improper conduct from that date, the revised rules will inform decisions by the board, where justified, to investigate and deal with ‘any complaint, charge or allegation against a registered auditor or … registered candidate auditor which may be laid before it’. This is in keeping with the requirements of section 48 of the 2005 Auditing Profession Act (investigations) – and noting that, where appropriate, the board is empowered to impose any of the prescribed sanctions set out in section 51(3) (proceedings following hearings) and Disciplinary Rules 8.1 and 8.2.

The IRBA has also amended a section of its code of conduct dealing with second opinions. Scheduled to come into effect on 15 January 2020, among other things the new section 321 will allow a registered auditor to ascertain the circumstances surrounding a request for a second opinion from the client concerned or (with that client’s permission) from its existing accountant or his/her predecessor; and to determine whether the client sought a second opinion from any other registered auditor. The amended section will also require all second opinions to be provided in writing and that any given orally are supported with written reports.