Introduction to

GOA 200

Make today
matter
Admin
 Class Assessment 1:
 Date: Friday, 01 March 2024
 Online assessment
 Scope: Inventory and production cycle, and Purchases and Acquisitions
cycle.
 Source: Auditing Fundamentals pp 289 – 307; 344-353
 What to expect: Weaknesses, consequences, control activities, control
objectives.
 How to explain a control activity/objective: theory + application (refer
BUS 100, 2023, LO12 (with feedback) to recap exam technique
 Also make sure you are familiar with paying suppliers as explained: AF
pp. 301-304
 Launch Pack Activity 5:
 Due: Monday, 26 February 2024 at midnight
Test Dates
Study pack = Google
Map for GOA 200:
LA’s and SO’s are the
maps to GOA 200.
 What is a Learning Area (LA)?
• GOA 200 = 9 LA’s
• Each to be downloaded/printed before formal lecture
relating to it
• Contains: Title; Specific outcomes; and homework questions
with detail instructions and deadlines for questions to be
completed
 Auditing

Accounting

Auditor  users
assurance that
financial statements
are not misstated
 LA 1
SO 2

Auditor v.s. Accountant

Accounting (Chartered Accountant – SAICA)
• Gathering, sorting, summarise data = financial reporting in
financial statements

Auditing (Auditor – IRBA & SAICA)

• Review financial information, verify records and audit report
• Assurance that financial statements are not materially
misstated
CHARTERED ACCOUNTANT

1
5

• Nelisiwe Shiluvana CA(SA),

• Group Financial Director = Famous Brands Ltd
• Financial statements  prepared under her supervision
CHARTERED ACCOUNTANT AND REGISTERED AUDITOR

1
6

Extract: INDEPENDENT AUDITORS REPORT

• Lucian Rolleston CA(SA) & RA

• External auditor
1
7
SUMMARY: ACCOUNTANT VS AUDITOR
Accounting Auditing CA(SA) & RA
Transactions carried on
Registered Auditor/firm
(external) is appointed to
audit financial statements
 Information processed in 4-phases:

1.) Pre-engagement
2.) Planning
 Financial statements compiled by 3.) Further procedures
accountant/CA(SA) (field work)
Famous Brands Financials 4.) Completion and
reporting (Audit report)
 Agent = Accountable =
Create Financial
statements?? Therefore
auditor required…

SOURCE:
https://kfknowledgebank.kaplan.co.uk/images/default-source/default-album/P1_Ch2New_040.gif
* SAICA: South African Institute of Chartered Accountants
* RA: Registered Auditor
* IRBA: Independent Regulatory Board for Auditors
0
GOVERNING BODIES OF ACCOUNTANCY
PROFESSION – IFAC S/O 2.4

(SAICA and IRBA Codes of conduct)

 Think – Pair – Share Activity 1

 What is the difference between internal and external audit?

 Form seven groups
 You have 1 min to think about that
 Two minutes to discuss in your groups
 30 sec to report back (select somebody to do so)
 INTERNAL VS EXTERNAL AUDIT
INTERNAL EXTERNAL

PROFESSION Body: IIA SA Body: IRBA

Designation: Certified Designation: Registered
Internal Auditor (CIA). Auditor (RA)
(Must also be a CA(SA)).
STANDARDS Attribute and Performance International Standards on
Standards. Auditing.
SUBJECT MATTER Whole organisation, all Financial statements.
departments, functions and
operations.
LEGAL REQUIREMETNS Companies Act: Audit Companies Act requirement
committee to be audited/reviewed
FUNCTION Internal / External External
 Think – Pair – Share Activity 2

 Formulate each postulate in your own words

 Form seven groups
 Group 1 = postulate 1, Group 2 = postulate 2
 You have 1 min to think about it the sentence
 Two minutes to discuss the sentence in your groups
 30 sec to report back (select somebody to do so)
 Postulates of Auditing
Truth and Fairness
1. Financial statements and financial data are verifiable.
2. The financial statements and other information submitted for verification are free from
collusive and other irregularities.
3. Consistent application of generally accepted accounting principles results in the fair
presentation of financial position and the results of operations.
4. In the absence of clear evidence to the contrary, what has held true in the past for the
enterprise under examination will hold true in the future.

Independence
5. There is no conflict of interest between the auditors and the management of the
enterprise under audit.
6. The professional status of the independent auditor imposes commensurate professional
obligations.
7. When examining financial data for the purpose of expressing an independent opinion
thereon, the auditors act exclusively in the capacity of auditor.
 SAICA:
(www.saica.org.za)

 IRBA:
(www.irba.co.za)
 How to qualify as CA(SA)
SAICA Accredited University: Complete accredited degrees (B Com Acc. Sciences / PGDAS)
Acc.)
TRAINING IN COMMERCE AND TRAINING INSIDE PUBLIC PRACTICE
INDUSTRY
SAICA Accredited training SAICA Accredited training office:
office: Enter into training Enter into the training programme, with
programme, with any one or a Auditing and Assurance as an elective skill
combination of any elective (i.e. Audit Firm)
skills (I.E. Fin management @
Bank) Initial Test of Compentence exam – ITC (1ST SAICA EXAM)

Complete the training Complete the Auditing Specialism training

programme programme
Complete a minimum of 20 months of the training programme

Assessment of Professional Competence – APC (2ND SAICA EXAM)

 COMPLETE REMAINING PART OF TRAINING CONTRACT
 REGISTER WITH SAICA AS A CA(SA)!!!
OPTION TO: Complete The Audit
Development Programme (ADP) – 18 months
REGISTER WITH IRBA AS AN RA
8

Main functions of SAICA

• CA(SA) facilitation
• Promote long term interests of members
• Promotes accounting profession
• SAICA exam part 1 (ITC: You 2027)
• Continuous Professional Development (CPD) of
members

Main functions of IRBA: (Established by law)

• RA facilitation
• Protects public interest
• Standard setting
• CPD
LA 1 P 13
Use this as map when on doubt
about the applicable source…