IRBA’s withdrawal from Regulation of the B-BBEE verification industry

Implications for B-Verified clients

B-Verified is in the process to register as a SANAS accredited verification agent and will continue to offer B-BBEE verification services to our clients. Note that B-Verified will issue certificates as an IRBA accredited agent until 31 December 2016 in terms of assurance engagements that have been entered into before 30 September 2016. Clients who require a certificate before the end of the year should notify Mandy Bestbier before 30 August 2016. Email mandy@b-verified.co.za or phone +27 21 914 0261.

Notice issued by IRBA on 2 August 2016

The IRBA issued a communique on 4 March 2016 to inform B-BBEE approved registered auditors (BARs) of the IRBA Board’s decision to withdraw from the regulation of the B-BBEE verification industry on 30 September 2016 (the 4 March 2016 communique is available here).

Engagements have taken place with the Department of Trade and Industry (DTI) and other stakeholders to finalise the process of withdrawal and to define the new regulatory structure for the B-BBEE verification industry. The DTI has advised the IRBA that it will issue appropriate communication that will clarify the new regulatory structure and the requirements for compliance as a B-BBEE Verification Professional.

In the interim, the DTI has by way of a letter to the CEO of the IRBA dated 26 July 2016, announced that:

‘As per the communique dated 04 March 2016 addressed to the Members of the IRBA, as of 30 September 2016, the IRBA will no longer be the ‘Approved Regulatory Body’ as per Code Series 000, Statement 005 of the Codes of Good Practice.

Any entity that seeks to apply for B-BBEE Accreditation to issue B-BBEE Verification Certificates post 30 September 2016 or wishes to participate in the B-BBEE Verification Industry must thus follow the Code Series 000, Statement 005, Section 5 of the Codes of Good Practice application process to the Accreditation Body (SANAS).’

BARs are thus encouraged to commence their registration and accreditation with SANAS. It should be borne in mind that the objective, scope, work effort and reporting of an engagement performed under SANASs/DTIs verification procedures are significantly different to the requirements of the IRBA’s issued South African Standard on Assurance Engagements (SASAE) 3502 (Revised), Assurance Engagements on Broad-Based Black Economic Empowerment (B-BBEE) Verification Certificates.

SASAE 3502 (Revised) will be withdrawn in due course, and therefore BARs are urged to undertake the necessary training to be able to meet the requirements of SANAS. BARs are further encouraged to establish contact with SANAS/DTI to obtain further information on the registration and accreditation process.

With respect to assurance engagements that have been entered into prior to 30 September 2016, a transitional period of three (3) months (to 31 December 2016) will be allowed for the sign off of the verification certificates for these engagements.

The IRBA will continue to keep stakeholders informed of new developments as these are communicated to us.

 

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