05 October 2011

The Committee for Auditing Standards ('CFAS') a statutory committee of the Independent Regulatory Board for Auditors ('IRBA') has approved the release of this Proposed Guide for Registered Auditors - Audit of Predetermined Objectives (the "Proposed Guide"), for public comment. The Proposed Guide may be modified in light of comments received before being issued in final form.

When performing audit engagements in the public sector, there are additional legal, regulatory and reporting requirements with which a private sector auditor has to comply. In terms of the Public Audit Act, (PAA) the Auditor-General of South Africa (AGSA) and auditors in private practice must provide an audit opinion or conclusion on the reported information relating to the performance of the auditee against predetermined objectives. The Proposed Guide assists private sector auditors with understanding those requirements when performing an audit of predetermined objectives as disclosed in the annual report of entities in the public sector.

Performance information is essential to focus the attention of the public and oversight bodies on whether public institutions are delivering public services, by comparing their performance against their budgets and strategic plans. The objective of an audit of predetermined objectives is to enable the auditor to conclude whether the reported performance against predetermined objectives is useful and reliable, in all material respects, based on predetermined audit criteria. The Proposed Guide has been developed by the CFAS Public Sector Standing Committee ("PSSC") in consultation with the Auditor General of South Africa. The PSSC is established for the purpose of improving the understanding of and enhancing the performance of quality public sector audits and reporting.

The scope of the Proposed Guide includes:

Difference between the audit of predetermined objectives and performance auditing;
Background to an audit of predetermined objectives;
The legislative requirements and application guidance;
Standards and principles applied; and
Application guidance.

The Proposed Guide is informative and not technical in nature.

This Proposed Guide should be read in conjunction with the Proposed Guide for Registered Auditors Auditing in the Public Sector issued 6 September 2011 for public comment.

How to Comment

To ensure that all relevant stakeholders are consulted and to streamline the consultation process, interested and affected stakeholders are invited to submit written comments to the IRBA. All comments will be considered a matter of public record.

Written comments should be submitted to the IRBA by 31 October 2011 preferably by email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it , or on computer disk in MS Word format to:

Mrs SD van Esch	Or to:	Mr Y Choonara
Tel: +27 87 940 8871		Tel; +27 87 940 8867
Fax: +27 86 575 6535		Fax: +27 86 575 8645
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it		E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

A copy of the exposure draft is available in PDF format and may be downloaded from the IRBA website. Should you have any other queries or experience any technical difficulties in downloading the documents please do not hesitate to contact the Standards Department at +27 (0)87 940 8800 or send an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Sandy van Esch
Director: Standards

Click here to download the Guide for Registered Auditors: Audit of Predetermined Objectives (PDF)

Click here to download the word version of this communiqué (DOC)

Click here to download the PDF version of this communiqué (PDF)

About the IRBA

The objective of the IRBA is to endeavour to protect the financial interests of the South African public and international investors in South Africa through the effective and appropriate regulation of audits conducted by registered auditors, in accordance with internationally recognised standards and processes. The CFAS assists the IRBA to develop and maintain auditing pronouncements which are internationally comparable.