IRBA Issues Revised Auditor’s Report Templates for Medical Schemes

Posted 03 October 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: In terms of the Auditing Profession Act, No. 26 of 2005, the Independent Regulatory Board for Auditors (IRBA) has issued revised illustrative auditor’s report templates for medical schemes to incorporate international and local reporting amendments. These updates specifically address independence disclosures for Public Interest Entities (PIEs) and enhanced auditor reporting requirements.

The IRBA Committee for Auditing Standards (CFAS) approved the publication of the Revised Illustrative Auditor’s Reports on Financial Statements (ISA 700 (Revised) Reports) of Medical Schemes. This update is issued as a revised Appendix 5 to the Revised Guide for Registered Auditors: Assurance Engagements on the Annual Financial Statements and Annual Statutory Returns of a Medical Scheme.

The revisions incorporate the International Auditing and Assurance Standards Board’s (IAASB) Narrow Scope Amendments to ISA 700 (Revised). These amendments stem from revisions to the International Ethics Standards Board for Accountants (IESBA) Code, which now require audit firms to publicly disclose when they have applied independence requirements for PIEs.

Key Regulatory Changes and Effective Dates

The updated templates reflect two primary regulatory shifts:

  • The IRBA Rule on Enhanced Auditor Reporting (EAR) for the audits of financial statements of PIEs, which is effective for periods ending on or after 15 December 2024.
  • The ISA 700 (Revised) amendments regarding PIE independence disclosures, effective for audits of financial statements for periods beginning on or after 15 December 2024.

Early adoption of these revised templates is permitted. The IRBA noted that these updates were issued independently of the broader Revised Guide for Registered Auditors to ensure timely compliance with the narrow-scope amendments made to IAS 1.

Click here to download the 12-page revised document.

What this means for you, your business, or your clients

  • For yourself: You must familiarise yourself with the specific wording in the revised Appendix 5 templates to ensure that the mandatory disclosures regarding PIE independence are correctly articulated in your audit opinions for the upcoming cycle.
  • For your business: Audit firms must update their standard engagement templates and internal quality management systems to align with the EAR Rule and the new ISA 700 disclosure requirements for all medical scheme clients.
  • For your clients: Medical schemes, which are generally classified as PIEs, will receive auditor’s reports that provide enhanced transparency regarding the auditor’s independence and specific reporting requirements mandated by the EAR Rule.

Originally published at https://accountingacademy.co.za/news/read/irba-revised-illustrative-auditor-s-reports-on-financial-statements-isa-700-revised-reports-of-medical-schemes

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