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Reporting on Insolvencies – what the auditor & accountant should know 2020

There are severe consequences for auditors, accountants, independent reviewers, accounting officers and directors when dealing with companies which trade under insolvent circumstances.

R 475
Category Law
Accredited SAIBA
CPD Hours 2
Effort 2 Hours
Duration 2 Hours
Format Webinar
Level N/A
Assessment Yes
Supervised No
Pre-Entry No
Tuition Optional
Study Material No

What you will learn

By the end of this event the participant should: 

  • Understand the difference between commercial insolvency vs factual insolvency; 

  • Know potential legal consequences arising with insolvencies; 

  • Understand the legislation and other legal references to insolvencies;  

  • Understand what to consider regarding clients' responses to factual solvency; and 

  • Know how to fulfil your obligations w.r.t reporting on insolvencies. 

Study Units

Commercial vs Factual insolvency

Potential legal consequences

Section 4 of the Companies Act – solvency and liquidity test

Relation of Sec 4 to CIPC Compliance Checklist

Section 22 of the Companies Act on Close Corporations

Section 129 of the Companies Act on financially distressed companies

Regulation 29 of the Companies Act

Auditing and review standards

Close Corporations Act

Subordination agreements

Letters of support

Guarantees

how, when and to whom?

Subordination agreements format and checklist

Possible reportable irregularity working paper template

Requirements

Who should attend 

The following persons will benefit from attending this webinar: 

  • BAP(SA); 

  • Accounting officers; and 

  • Directors of companies. 

Description

There are severe consequences for auditors, accountants, independent reviewers, accounting officers and directors when dealing with companies which trade under insolvent circumstances. It is of utmost importance that these parties and their clients understand all their reporting duties.  

The legislation governing reporting duties for directors and auditors is especially complex and there are many pitfalls one needs to be aware of. The practical problem is that we are sitting with lots of requirements and not enough guidance! 

During this webinar Lettie Janse van Vuuren CA(SA), RA will discuss all the relevant legislation that auditors, independent reviewers, accounting officers, accountants, as well as their clients who are directors of companies, should be aware of.  Lettie will also clarify what your considerations and reporting should include. 

Lettie has also compiled some bonus documents that will be provided to you and remember, in order to receive your two CPD hours, you will need to answer ten quick and easy assessment questions.