A group of accounting firms has welcomed the decision by Finance Minister Tito Mboweni to dissolve the board of the audit watchdog, the Independent Regulatory Board for Auditors (IRBA).
The BDO said that winning back trust in the auditing profession was critical.
It said this required decisive interventions to support the role of auditors in driving clarity and confidence in both public and private institutions.
“We welcome efforts to hold our profession to a high standard and support all steps that support clear direction in how we conduct ourselves better,” BDO said.
“We strongly believe that being better is our collective responsibility as active corporate citizens.
“It is critical that this extends well beyond the audit profession as we work together to build the better South Africa we must be.”
Mboweni yesterday dissolved the board of the IRBA following the resignation of a number of board members and challenges in the functioning of the board.
Reports indicate that several board members had quit in protest against the appointment of former head of audit committee at Tongaat Hulett, Jenitha John, as IRBA chief executive.
John was chair of Tongaat Hulett audit committee for nine years until May 2019 and during the turbulent period when the sugar and property company was hit with accounting scandals.
Last year, the JSE fined Tongaat Hulett a maximum of R7. 5 million and publicly censured it for publishing financial statements that contained errors.
Mboweni has appointed pioneering chartered accountant Nonkululeko Gobodo and former president of the JSE, Major General Roy Andersen as caretakers until a new board was appointed.
Gobodo and Andersen will, among others, be required to assist with the smooth running of the institution and assist Mboweni in the appointment of the new board, and ensure that the process is finalised within 3 months.
BUSINESS REPORT