Earlier this month, Cricket South Africa (CSA) made the landmark decision to appoint black-owned firm Nkonki as auditor for the organisation and all its members. For many years, CSA was audited by Deloitte and the clubs each had their own auditors. The man tasked with overseeing the job is Nkonki partner Zakhele Nkosi. We asked him what it is like to be the lead engagement partner for such a historic institution.
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Who is your favourite cricketer?
"I recently had the pleasure of attending the CSA awards in a year that was also their 25th anniversary. I was coaxed by colleagues to take some pictures with [barn-storming fast bowler] Kagiso Rabada (bottom photo), so I would say that he is my favourite."
What will be your role?
"I will be leading the engagement partner and I am looking forward to the challenge. Everyone at Nkonki excited to be working in another industry, as we haven't audited a sports federation before."
What is going to be the biggest challenge?
"Revenue recognition will be interesting, but luckily we did a lot of research before we took the job. There are many different revenue streams, including income from stadiums and sponsorships. This is not a company that is selling goods, so we have to apply our minds differently. We also have to look at transactions between members and CSA."
CSA CEO Haroon Lorgat is a CA(SA), who previously ran his own audit practice. Does that make you nervous?
"No, it makes it interesting. His wisdom and experience will definitely keep us on our toes."
Did you have to hire new people to do this audit?
"No. We have the necessary skills and expertise in-house, but we are using some advice from the Kreston International Limited, the global network that we are part of - as other member firms have dealt with sports federations before."
What does the appointment mean for transformation in the audit space?
"Traditionally black firms mostly do public sector audits. This is a big step towards getting a bigger market share in the private sector. We are very excited."
What is your take on the pace of transformation?
"Personally, I find that the pace of transformation is less than desirable. Nkonki is over 20 years old and we as a partnership are aspiring to grow our client base in the private sector space. This year we were appointed joint auditors, with EY, of the Telkom SOC Ltd account, this is a great step in realising these aspirations. We realise that to run a sustainable business, we need a good mix of private and public sector clients."
