The Independent Regulatory Board for Auditors (IRBA) has investigated the audit profession and is concerned about the lack of independence in the industry. It wants change and has asked the industry and interested parties for input on its recommendation for mandatory rotation of audit firms every 10 years. Among its findings is that 25% of the JSE top 40 companies have appointed as chairman of their audit committee individuals who were previously employed by their external auditors. The IRBA found the tenure of many of the largest companies was long, with Murray & Roberts and Deloitte holding the record at a staggering 114 years. A close second is PwC’s 101-year audit relationship with Naspers. AECI has used KPMG for 91 years, Santam has used PwC for 87 years and Woolworths has used EY for 84 years. The exceedingly long tenures reflect the consolidation that has taken place locally and globally over the past several decades. Four powerful companies now dominate the global industry: ...
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