Study unit 24

Question 1

What is integrated reporting

Answer 1

An evolution of corporate reporting with a focus on conciseness, strategic relevance and future orientation
How an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value in the short, medium and long term

Question 2

What is the difference between integrated and financial reporting

Answer 2

Integrated reporting
*optional
*objective - explain how company creates value over time, meaningful information to all stakeholders
*focus - financial and non-financial information and future-oriented
Financial reporting
*not optional
*objective - provide information to stakeholders about the financial position and performance that is useful for making economic decisions
*focus - financial information and what already happened

Question 3

What is the 6 capitals of integrated reporting

Answer 3

Financial
Manufactured
Social and relationship
Intellectual
Human
Nature

Question 4

What is the King IV objective

Answer 4

Report to all stakeholders in the context of the 6 capitals

• governing the company
• awareness
• ability to report
• act in such a way that they are able to demonstrate responsibilities have been met
• integrated thinking
• decision making

Question 5

What is the AGSA mandate

Answer 5

Chapter 9 of the constitution establishes the AGSA as one of the state institutions supporting constitutional democracy
The constitution recognises the importance and guarantees the independence of the AGSA, stating that the AGSA must be impartial and must exercise its powers and perform its functions without fear, favour or prejudice

Question 6

What is the terms of a public sector engagement

Answer 6

The annual audit is performed in terms of the Public Audit Act, the regulations and general notice issued in terms thereof
International Standards on Auditing 300
International Standards on Assurance Engagements 3000

Question 7

What is a material irregularity

Answer 7

A MI is similar to a reportable irregularity, however they are only identified for audits conducted in terms of the PAA
The definition of an MI as per the MI manual is:
*non-compliance with, or contravention of, legislation
*fraud or theft
*a breach of a fiduciary duty identified during an audit performed under this Act
*that resulted in or is likely to result in a material financial loss
*the misuse or loss of a material public resource
*substantial harm to a public sector institution or the general public