Auditing Profession Act, 2005 (Act No. 26 of 2005)

Board Notices

Independent Regulatory Board for Auditors

New Rules Regarding Improper Conduct and Code of Professional Conduct for Registered Auditors

Code of Professional Conduct for Registered Auditors

Part A : General Application of the Code

Section 130 : Professional Competence and Due Care

Purchase

130.1

The principle of professional competence and due care imposes the following obligations on all registered auditors:

(a)	To maintain professional knowledge and skill at the level required to ensure that clients receive competent professional service; and

(b)	To act diligently in accordance with applicable technical and professional standards when providing professional services.

130.2

Competent professional service requires the exercise of sound judgment in applying professional knowledge and skill in the performance of such service. Professional competence may be divided into two separate phases:

(a)	Attainment of professional competence; and

(b)	Maintenance of professional competence.

130.3

The maintenance of professional competence requires a continuing awareness and an understanding of relevant technical, professional and business developments. Continuing professional development enables a registered auditor to develop and maintain the capabilities to perform competently within the professional environment.

130.4

Diligence encompasses the responsibility to act in accordance with the requirements of an assignment, carefully, thoroughly and on a timely basis.

130.5

A registered auditor shall take reasonable steps to ensure that those working under the registered auditor’s authority in a professional capacity have appropriate training and supervision.

130.6

Where appropriate, a registered auditor shall make clients, employers or other users of the registered auditor’s professional services aware of the limitations inherent in the services.

130.7

A registered auditor shall not undertake or continue with any engagement which the registered auditor is not competent to perform, unless the registered auditor obtains advice and assistance which enables the registered auditor to carry out the engagement satisfactorily.