THE SOUTHERN AFRICAN JOURNAL OF ACCOUNTABILITY AND AUDITING RESEARCH Volume 3: 2000   Contents of this issue: Auditor reviews of interim financial information in South Africa: Discourse of the history of developments and their implications The influence of neo-classical economics on Management Accounting education in South Africa 'n Ouditeur se besigheidsrisiko The development of a common body of knowledge and skills for government auditors in South Africa Auditor reviews of interim financial information in South Africa: Discourse of the history of developments and their implications (WJJ Botha) Company interim financial reports provide decision useful information to a variety of their users. The debate surrounding the issue of independent auditor involvement with such reports started in the 1960's in the USA and is ongoing internationally. Today the general trend is that when auditor involvement is required, it takes the form of a review of the interim results. In South Africa, also, the auditor review of company interim reports has undergone major developments and change. The objective of this paper is firstly to determine through examination of the history of developments regarding the auditor review of interim financial information, the factors, issues and considerations which influenced current South African practice and secondly to identify the implications thereof for the auditing profession. Specific emphasis is placed on how relevant events/developments reflect on the standard setting process. The discourse presented herein supports a conclusion that present practice in respect of auditor reviews of company interim financial information in South Africa is the result of a deficient standard setting process which, in the main, fails to recognise and implement the defined principles of sound and socially acceptable standard setting. The auditing profession's ignorance of these principles will continue to foster deficient standards which are rejected by the users of auditing services and which marginalise the role and functions of the external auditor. The influence of neo-classical economics on Management Accounting education in South Africa (M Shotter) An analysis of the major sources of influence on management accounting education in South Africa reveals that management accounting education in South Africa is largely based on neo-classical economic theory. Regarding the sources, Faul et al. (1997), Redelinghuis et al. (1996), as well as the SIACA (1997) and CIS (1999) syllabi implicitly accept neo-classical economics as basis. Drury (1996) does so explicitly but also addresses alternative approaches to the subject. In the CIMA syllabus several of the restrictive assumptions of neo-classical economics are relaxed. Bearing in mind that management accounting is based on the assumption of rationality, ignores the effect of quality and changes brought about by time and inflation, and that it proposes simplistic, determinate solutions in a complex world, it is not surprising that the relevance of the subject has been questioned. It is recommended that authors of management accounting textbooks should clarify the foundation(s) of their texts, and where the texts are based on neo-classical economics, indicate its limiting assumptions. Students should be encouraged to study the alternative perspectives and foundations of management accounting. [ BACK TO THE TOP ] 'n Ouditeur se besigheidsrisiko (EM Odendaal) In addition to audit risk, an auditor is also exposed to business risk. In this paper, an auditor's business risk is described and the relationship between audit risk and business risk is indicated. A method is developed whereby an auditor's business risk is determined during client acceptance decisions and when the audit approach is developed. The method proposes that an auditor should first determine audit risk and then his business risk, and then adjust the audit risk to give the desired level of business risk. The auditor thus not only complies with the requirements of auditing standards, but will also be able to limit the risk of loss to his professional practice. The development of a common body of knowledge and skills for government auditors in South Africa (JD Gloeck & H de Jager) This article serves as documentary support for the development and contents of the Common Body of Knowledge and Skills (COBOKS) for government auditors in South Africa. Government auditors fulfill a specific role, clearly distinguishable from other professional services related to the generic functioning of accounting labour in South Africa. Not only is the government auditor function clearly described and backed by legislation, but the existence of an independent professional institute, the Southern African Institute of Government Auditors, a professional entrance examination and a public record of registered government auditors complement and support the professional status of government auditors. Distinctions between public and private sector auditors in South Africa become apparent through a functional description as well as an analysis of the educational and skills requirements. In this regard the Common Body of Knowledge and Skills for Government Auditors provides the backbone of the profession of government auditors. [ BACK TO THE TOP ]
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