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An Audit Procedure outlines the specific steps and methods auditors use to examine financial records, internal controls, and business operations. In South Africa, these procedures must align with the requirements set by the Independent Regulatory Board for Auditors (IRBA) and follow international auditing standards.

These procedures guide auditors through key tasks like reviewing bank statements, confirming account balances, checking compliance with the Companies Act, and testing internal controls. They help ensure accuracy, detect potential fraud, and provide reasonable assurance that financial statements fairly represent a company's financial position. Good audit procedures protect both businesses and stakeholders while meeting South African regulatory requirements.

Use Audit Procedures when preparing for annual statutory audits, during significant organizational changes, or when investigating financial irregularities. South African companies must implement these procedures before external auditors review their financial statements, especially those listed on the JSE or falling under the Companies Act's public interest score requirements.

These procedures become essential during mergers and acquisitions, when expanding operations, or if your company faces regulatory scrutiny. They're particularly valuable for identifying control weaknesses, preventing fraud, and ensuring compliance with IRBA standards. Many organizations also use them quarterly to maintain strong financial governance and prepare for year-end audits.

• Substantive Audit Procedures: Test actual financial transactions, account balances, and disclosures through sampling and detailed analysis
• Control Testing Procedures: Evaluate internal control systems' effectiveness and compliance with South African governance requirements
• Analytical Procedures: Compare financial ratios, trends, and relationships to identify unusual patterns or potential issues
• Compliance Audit Procedures: Focus on adherence to IRBA standards, Companies Act requirements, and industry-specific regulations
• IT Audit Procedures: Examine digital systems, cybersecurity controls, and data integrity in line with Protection of Personal Information Act requirements

• External Auditors: Registered with IRBA, they design and execute audit procedures to verify financial statements and ensure compliance
• Internal Audit Teams: Create and implement procedures for ongoing monitoring of company controls and operations
• Board of Directors: Review and approve audit procedures as part of their oversight responsibilities under King IV
• Finance Department: Provides documentation and implements controls specified in audit procedures
• Audit Committee Members: Oversee the audit process and ensure procedures meet regulatory requirements and company needs

• Business Profile: Gather details about company size, industry, and regulatory requirements under South African law
• Risk Assessment: Document key financial risks, control weaknesses, and compliance obligations specific to your organization
• System Documentation: Map out financial systems, accounting processes, and internal controls currently in place
• Resource Planning: Identify team members, time requirements, and necessary tools for conducting audit procedures
• Regulatory Framework: Review IRBA standards, Companies Act requirements, and industry-specific regulations affecting your audit scope
• Template Selection: Use our platform's customizable audit procedure templates to ensure comprehensive coverage and compliance

• Objective Statement: Clear outline of audit scope, purpose, and alignment with IRBA standards
• Methodology Section: Detailed sampling methods, testing procedures, and evidence collection protocols
• Risk Assessment Framework: Identification of material risks and corresponding audit responses
• Documentation Requirements: Specific records needed, retention periods, and POPIA compliance measures
• Quality Control Procedures: Review processes, supervisory controls, and error handling protocols
• Compliance Declarations: Statements confirming adherence to Companies Act and relevant regulatory standards
• Reporting Framework: Format and timing of audit findings, recommendations, and follow-up procedures

Audit Procedures are often confused with Compliance Procedure, but they serve distinct purposes in South African business operations. While both support organizational governance, their scope and application differ significantly.

• Purpose and Scope: Audit Procedures focus specifically on examining financial records and internal controls, while Compliance Procedures cover broader regulatory requirements across all business operations
• Timing and Frequency: Audit Procedures are typically executed during specific audit periods or engagements, whereas Compliance Procedures run continuously throughout the year
• Implementation Team: Audit Procedures are primarily executed by qualified auditors (internal or external), while Compliance Procedures are managed by compliance officers and department heads
• Outcome Focus: Audit Procedures aim to verify accuracy and detect irregularities in financial reporting, while Compliance Procedures ensure ongoing adherence to laws and regulations