Audit and Assurance

The Internal Audit unit of Nexia SAB&T conducts internal audits in diverse environments, within organisations that vary in purpose, size, complexity, and structure guided by the International Standards for the Professional Practice of Internal Auditing as issued by the Institute of Internal Auditors (IIA), which provide clear guidance on Assurance and Consulting Services within the Internal Audit environment.

Out-source vs Co-source

Nexia SAB&T can reduce their clients’ costs, free up capital, and enhance their ability to focus on what they do best, their primary operations, by providing either out-sourced or co-sourced internal audit services. With organisations being driven to do more with less, the internal audit (IA) function has logically become the target for strategic sourcing. Achieving effective IA capabilities requires a significant level of investment in skilled resources, methods, training and technical infrastructure.

Co-sourcing Services

Nexia SAB&T can supplement organisations’ existing internal audit capabilities, by providing specialised skill sets and undertaking once-off audit assignments as needed.

Out-sourcing Services

Where an organisation does not have an in-house Internal Audit function, Nexia SAB&T can advise them on critical business risks, implementation of effective controls and compliance processes, identifying better practices, reducing the cost of operations and realising improvement opportunities.

Professional Internal Audit Resourcing

Nexia SAB&T’s internal audit unit consists of appropriately skilled and experienced audit professionals that are readily available, to undertake work under the direction of an organisation’s internal audit function. These engagements may be undertaken on a once-off or on a continuing basis.

Nexia SAB&T’s internal audit unit works with heads of internal audit, executive management and audit committees to develop a quality internal audit function that delivers strategic business assurance, identifies business opportunities and enhances organisational value.

Assurance Services

Internal Audit and related assurance services provided by Nexia SAB&T involve the internal auditor’s objective assessment of evidence to provide an independent opinion or conclusions regarding an entity, its operations, functions, processes, systems, or other subject matter. Assurance services provided by Nexia SAB&T include the following types of audit:

Financial Audit

A review of an organisation’s objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.

Governance Audit

Assessing and making appropriate recommendations for improving the governance processes in accomplishment of the following objectives:

  • Communicating risk and control information to appropriate areas of the organisation
  • Coordinating the activities of and communicating information among the board, external and internal auditors, and management
  • Ensuring effective organisational performance management and accountability
  • ­Promoting appropriate ethics and values within the organisation

Operational Audit

A systematic review of effectiveness, efficiency and economy of operations. An operational audit is a future-oriented, systematic, and independent evaluation of organisational activities.

Performance Audit

An independent examination of a program, function, operation or the management systems and procedures of an organisation to assess whether the entity is achieving economy, efficiency and effectiveness in the employment of available resources.

Integrated Auditing

Nexia SAB&T understand that more and more organisations are seeking an internal audit service provider that focuses simultaneously on its financial, operational and IT control processes.

Integrated audits save time and money, while at the same time minimising audit risk.

Nexia SAB&T’s internal audit unit deploys multi-disciplinary teams of professionals experienced in financial and operational internal auditing and risk assessment to augment and enhance an organisations’ existing internal audit capabilities. The teams work at making internal audit functions, enterprise risk management programmes, as well as risk and controls management more efficient and effective.

Governance, Regulatory & Compliance Services

Nexia SAB&T provide consulting services which are advisory in nature, and are generally performed at the specific request of their clients.

Governance, regulatory and compliance issues continue to be complex business challenges. Increased accountability and potential exposure to liability means accounting authorities need to ensure that corporate governance standards are adhered to and that robust compliance management systems are in place.

Nexia SAB&T’s internal audit unit can assist management to identify applicable laws and regulations to gain a better understanding of the regulatory environment. Their approach combines an analysis of the legal framework together with an assessment of the systems and processes which can help to ensure compliance and sound corporate governance.

Some of the Governance, Regulatory & Compliance services Nexia SAB&T provide include:

  • Board and audit committee assessments
  • Board training
  • Development of internal control frameworks, in line with CoSO
  • Governance framework design
  • Quality assurance reviews
  • Sarbanes-Oxley Act compliance / readiness assessments

Combined Assurance

King III recognises the possibility of “too much” assurance and has recommended a combined assurance approach. In chapter three it states that the audit committee should ensure that a combined assurance model is applied to provide a coordinate approach to all assurance activities.

The internal audit unit of Nexia SAB&T is integrated with its enterprise risk management and governance assurance units and can assist in developing and implementing a combined assurance plan.

The External Audit and Assurance Services unit of Nexia SAB&T, follows a precise and proven risk based audit approach to ensure that every item requiring investigation and verification is properly substantiated. This includes spending the appropriate amount of time planning the approach to ensure it is thorough, complete, and in compliance with the International Audit Standards.

Nexia SAB&T employ qualified and experienced staff, use advanced audit tools and tailor their approach to each specific audit to add value to their clients, which culminates in detailed management reports that succinctly address:

  • Compliance matters;
  • Inefficiencies in financial management;
  • Issues relating to financial statements;
  • Significant findings;
  • Weaknesses in internal controls; and
  • Weaknesses within management information systems.

The range of audit and assurance services Nexia SAB&T provide include:

Statutory Audits

Nexia SAB&T implements a risk-based approach to the conduct of statutory audits, which includes a detailed risk assessment with the objective of identifying high-risk areas specifically with regard to statutory compliance.

Nexia SAB&T’s external audit staff undertake continuous professional development in   order to ensure an excellent statutory audit service is provided to a wide spectrum of organisations including privately owned entities, publicly traded companies, not-for-profit organisations and trusts.
Our statutory audit portfolio comprises a vast number of industries which operate within national and multinational environments including industrial, retail, mining & exploration, safety & health, telecommunications, construction, finance and labour hire.

Independent Reviews

Nexia SAB&T’s skilled, professional staff have been involved in numerous independent reviews in line with the requirements set forth by the Companies Act of South African and the International Standards on Review Engagements.

Independent reviews providing limited assurance are more cost effective and efficient for Smaller to Medium Sized Entities operating within the current economic climate and may be a viable options to pursue compared to statutory audits considering the cost saving involved.

Audits of Performance Information

Nexia SAB&T provides an organisation with a range of performance information audits, most predominantly the audit of performance information constituting an evaluation of the policies, systems, processes and procedures for the managing of and reporting on predetermined objectives.

Enterprises are required to report against predetermined objectives as part of their quarterly and/or annual reporting. Nexia SAB&T provides an effective and efficient quality of service in order to ensure the audit of performance information is in line with prescribed guidelines.

The methodology Nexia SAB&T employs for the audits of performance information is tailored to clients’ requirements in order to conform to managements reporting responsibilities and to provide a cost effective reporting platform.

Currently Nexia SAB&T provides a number of audit of performance information to public enterprises at national government level, local government level as well as state owned companies and parastatals.

Performance Audits

An independent examination of a program, function, operation or the management systems and procedures of an organisation to assess whether the entity is achieving economy, efficiency and effectiveness in the employment of available resources.

Our performance audit identifies areas of high risk for improvement, where management can adequately improve the operational effectiveness of systems and procedures.

Sarbanes-Oxley Compliance

The primary purpose of the Sarbanes-Oxley Act of 2002 is to protect investors in listed entities through various regulations governing financial reporting aspects of the listed entities, resulting in the culmination of investors’ confidence surrounding financial reporting.

Nexia SAB&T provides assurance services on the implementation, execution, monitoring and reporting of Sarbanes-Oxley for companies who are operational within South Africa, but form part of a bigger foreign listed Group.

Nexia SAB&T is registered with the Public Company Accounting Oversight Board as accredited auditors to provide audit for companies requiring compliance with Sarbanes-Oxley.

Specialised Audits (agreed upon procedures / factual findings)

Our specialised audits comprise financial due diligence, factual findings and agreed upon procedure engagements for small businesses to multinational organisations.

The engagement scope is defined together with the client and forms the basis for the agreed upon procedures in order to ensure requirements and expectations are met in line with current best practices and benchmarks.

Technical Advice and Interpretations

Nexia SAB&T has a dedicated technical division with skilled and experienced individuals to research topics and formulate opinions on the application of accounting and legislative standards and accounting for corporate structures and actions.

The technical assistance offered may include the following:

  • Research of any technical, legislative and other interpretation matters;
  • Interpretation of the application of the accounting standards and legislative matters;
  • Writing of a technical opinion; and
  • Technical review of financial statements for disclosure requirements.

Nexia SAB&T is accredited by the Independent Regulatory Board for Auditors (IRBA).

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