SA retains top position for auditing and reporting standards for seventh year
The Independent Regulatory Board for Auditors (IRBA) has welcomed the news that South Africa has been ranked yet again as the world’s number one for auditing and reporting standards, making it the seventh consecutive year that the country holds this position. As the audit regulator, the IRBA is the statutory body falling within the National Treasury mandated with the protection of the investing public through effective regulation of auditors to ensure high quality independent audits in which investors can place their trust.
All about mandatory audit firm rotation HERE!
Says Bernard Agulhas, CEO of the IRBA:
"We are naturally delighted to be recognised again for this achievement. At the IRBA we take very seriously our role in upholding the highest standards and persisting with our commitment to promote and maintain consistent and sustainable high levels of audit quality."
"South Africa relies very much on external capital and one of the important components of creating an environment where foreign direct investment (FDI) can occur is a well-regulated and reliable capital market. This results in a reputable audit profession which provides potential investors and capital providers with reliable and credible financial information on which investment decisions can be made. Equally, public confidence in any profession depends on the quality and robustness of the oversight."
This repeat recognition was published in the World Economic Forum's Global Competitiveness Report, issued on 28 September 2016. It comes despite other challenges currently faced by the country and provides investors and the public with the assurance that, while the financial pillars of a country remain solid, trust in financial markets remains possible.
Independence continues to be the cornerstone of the auditing profession, as it is a vital component of public and investor protection. Therefore, the IRBA issued a new rule in December 2015, which required all auditor's reports on Annual Financial Statements to disclose the number of years which the audit firm/sole practitioner has been the auditor of the entity (audit tenure), and took a further decision to introduce mandatory audit firm rotation (MAFR) to solidify the independence of auditors.
"As a responsible regulator, the IRBA must take the necessary measures to protect investors while remaining aware of global developments. Our number one ranking for seven years in a row does not only demonstrate the international community's confidence in our profession and oversight but also provides the necessary basis to stimulate much needed investment in our economy."