Practical Implementation
Audit support: External audit considerations for AFS
June 28, 2015
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The Chapter 9 of the Constitution of the Republic of South Africa has established the Auditor-General of South Africa (AGSA) as a state institution that strengthens our constitutional democracy. The AGSA must perform the audit and report on the financial statements and financial management of all national and provincial state departments and administrations; all municipalities; and any other institution required by legislation. The AGSA process from an auditee’s management perspective can be summarised into the following three distinct phases:
| Pre-audit | During audit | Post-audit |
|---|---|---|
| Auditee’s management prepares and submits GRAP AFS and an audit file to the AGSA. The quality of the AFS is dependent on the successful implementation and executions of a complex set of accounting controls and procedures. | This is where the AGSA scrutinises and audits the transactions and balances as accounted for and submitted on the AFS submitted by management; as well as communication of audit findings and the management thereof. | This involved the follow-up and improvement on weaknesses set out in audit findings made by the AGSA. |
Ducharme can assist with a two-day workshop on the management impact on an external audit, This will provide insight on the management impact on an external audit, applicable to GRAP AFS, with reference to:
- The role, functions and powers of the AGSA and the impact thereof on an auditee;
- The Auditee’s management considerations as to the assertions of GRAP AFS, which will be subjected to the audit tests of the AFS;
- Management processes and timeframes to compile reliable AFS for year-end audit as well as best practice relating to an audit file submission ;
- Overview of key standards of GRAP with deviations from GRAP as identified from previous AGSA audit reports and practical implementation considerations to address deviations.
Ducharme can also assist entities that are audited by the AGSA with:
- Pre-AFS submission support (AFS preparation; AFS Year-end completion plans; AFS timeframes; audit file compilations)
- During the audit process (IT Solution to assist in the management of audit queries & technical queries)
- Post-audit support and corrections
