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Presentation Footer1 Assurance Update Presented by: Ashley Vandiar Project Director: Assurance and Members’ Advice.

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Presentation on theme: "Presentation Footer1 Assurance Update Presented by: Ashley Vandiar Project Director: Assurance and Members’ Advice."— Presentation transcript:

1 Presentation Footer1 Assurance Update Presented by: Ashley Vandiar Project Director: Assurance and Members’ Advice

2 BEE EMEs –Sector Specific thresholds –Tourism Sector Charter –Property Sector Charter – Estate Agents –Construction Sector Charter – Built Environment Professionals Black Business Supplier Development Programme (BBSDP) –51% Black owned –Turnover between R250k – R35million –Operating and trading for at least 1 year –VAT registered

3 Procedure for reporting of Fronting : The following diagram depicts the procedure for reporting Fronting practices:

4 BEE Amendment Bill Creation of Fronting as a criminal offence –1. Anyone who provides false information or attempts to misrepresent information relevant to assessing the BEE status of an entity (fine and/or imprisonment not exceeding 10 years) –2. Any verification personnel, procurement personnel or official of a public entity who becomes aware of this and fails to report it (fine and/or imprisonment not exceeding 12 months) –In the case of entity – fine = 10% of annual turnover –Banned from contracting or transacting with state organ and public entities –NT register of tender defaulters Establishment if the B-BBEE Commission

5 B-BBEE Revised Codes Entity TypeExisting ThresholdsProposed Thresholds EME< R5 million< R10 million QSER5 million – R35 millionR10million – R50 million Generic> R35 million> R50 million

6 B-BBEE Revised Codes Changes to the elements Effect on QSEs Major change to the Ownership element Penalties

7 B-BBEE Revised Codes Current ElementsProposed Elements 1.Ownership Priority Element 2. Management and Control2. Management Control 3. Employment Equity 4. Skills Development3. Skills DevelopmentPriority Element 5. Preferential Procurement 6. Enterprise Development4. Enterprise and Supplier Development Priority Element 7. Socio Economic Development5. Socio Economic Development

8 SAICA Recommendations Don’t stress….Sit tight and await the final version before taking practical action Continue with current BEE strategy and compliance with current codes Timing – get audited before new codes come into effect –This will buy you an additional 12 months –Current codes are definitely more lenient

9 B-BBEE – good news Training Possible revenue streams for members Tools to help you

10 BEE Navigator IMPORT CLIENT DATA SCENARIOS & ADVICE CALCULATE SCORECARDS APPLY INDUSTRY CHARTERS IMPLEMENT & TRACK ONLINE WORKING PAPERS SAMPLE DATA ELECTRONIC REVIEW ASSURANCE REPORT PLAN AUDIT ConsultVerifyPrepare Serve your Client Base with a Streamlined Online Solution... NO ACCREDITATION REQUIRED MANAGE ONLINE DOCUMENT STORE APPOINT BEE-ACCREDITED AUDITOR PROVIDE DATA ACCESS TO AUDITOR COLLATE & UPLOAD PROOF DOCUMENTS LIAISE WITH AUDITOR

11 With an Extensive set of Client Management Tools... Access for Client to Capture Data & View Scorecard Detailed Tracking of all Client Inter-action Create Tasks and Notes for Clients and Staff Tracking of Workflow Status Online Document Library Status Reporting BEE Navigator

12 www.beenavigator.co.za LOGIN ADD CLIENT REGISTER BEE Navigator At the Right Price... Accountants & BEE Consultants (Annual License fee Excl VAT) Up to: 10 Clients20 Clients50 Clients100 Clients>100 Clients R 2,500R 6,750R 12,500R 22,500R 30,000 IRBA Accredited Auditors (Excl VAT) Annual Fee per Client Captured per QSE Verification Completed per Generic Verification Completed R200R 400R 12,500

13 Independent Review Survey Work Effort –85.7% felt that IR = 60-100% of audit –32.1% felt that IR = 80-100% of audit Regulation 29(5) –93.1% felt that it increases costs –51.7% felt that costs =/> audit Audit vs Independent Review –Less than 40% of eligible business elected IR

14 Independent Review Survey Conclusion –Work effort involved for IR not significantly less than audit –Reg 29(5) increases costs –Thus contrary to the objective of the 2008 Act –Achieves independence but at what cost? Is it worth it? Media release (22 March) Summit TV interview (28 March) SAICA submission to the dti

15 SAICA Guidance Effective audit of SMPs Ethics Independent Review refresher

16 Questions


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