How do entities get advice on interpreting the Standards?

Preparers and auditors often send queries to the ASB asking for advice on  interpreting or applying the Standards of GRAP.

As the ASB sets Standards of GRAP, it is important to remain objective and not to be involved in interpreting specific transactions, arrangements or events and providing accounting guidance. It is also not within the ASB’s mandate to provide accounting support to preparers and auditors or officiate in audit disputes. The National Treasury and the provincial treasuries provide accounting support to preparers, and the technical units at the Auditor-General or the respective auditing firms provide guidance to the auditors.

Where questions arise during the audit process, preparers should escalate the query for a resolution to their relevant Provincial Treasury, and if the entity is a National Public Entity, or a non-delegated municipality, to the National Treasury. If the relevant Provincial Treasury does not resolve issues, they will be escalated to the National Treasury. Auditors follow a similar process within the various provincial and national structures within the Auditor-General’s office.

This process is outlined on  the ASB website.

While the ASB does not provide accounting support or provide technical opinions on specific matters, the staff issues Frequently Asked Questions (FAQs) that outline broad principles to consider when dealing with topical accounting matters. These FAQs are developed in consultation with preparers, auditors, consultants and other interested parties and can be accessed on our website.

This article reflects the views of the staff of the ASB and not the Board.