Public hearing about audit rotation in parliament

A public hearing on the IRBA’s measures to strengthen auditor independence and contribute to the efficiency of capital markets will be held in parliament on 15 February. The IRBA will present its annual report as well as the MAFR proposals to the Standing Committee on Finance (SCOF) during this time.

View recent interviews and articles on MAFR by visiting our MAFR dossier.

Pictured: Bernard Agulhas, IRBA CEO

The IRBA decided in August last year that the preferred solution to achieve adequate auditor independence and enhance the credibility of financial reporting was Mandatory Audit Firm Rotation (MAFR). However, MAFR has met with stiff resistance, even ahead of the official public consultation process, which kicked off on 25 October 2016 and closed at the end of January.

Last week the IRBA reported that it had received 65 submissions near the close of the comment period, though this has since risen to 70. The board of the IRBA is considering the submissions, which were received from a variety of stakeholders including audit firms, companies, civil society and shareholder groups, individuals, professional bodies and other regulators. The board will meet soon to evaluate whether any new information has come to light as a result of the comment process.