AUDITOR INDEPENDENCE
Watchdog hits back at critics of firm rotation
The Independent Regulatory Board of Auditors (Irba) has hit back at criticism that its proposals to introduce audit-firm rotation would not address audit failures or ensure the independence of auditors, presenting evidence in support of its stance for the first time after public consultations closed on Friday.Irba CEO Bernard Agulhas said the board had noted a "sharp increase" in concern about auditor independence across the world through its engagement with other audit regulators, along with various ethics and standard-setting committees. These fellow regulators had initiated programmes to address such concern.Before the close of the period for public comment on the rotations last week — when the regulator received 65 submissions — professional bodies such as the Association of Certified Public Accountants (Acpa), the CFO Forum, and listed media firm Naspers railed against the Irba proposal, arguing that the programme had failed elsewhere and had undermined companies’ and investors...
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