Plan to enforce auditor rotation in SA puts big business in flat spin
South Africa's Independent Regulatory Board for Auditors may be sent back to the drawing board over its plans to force audit-firm rotation in the country this year. The proposal has met overwhelming opposition from local and international players in the financial services industry. Deloitte Africa CEO Lwazi Bam, in an interview with Business Times, said there had been no credible evidence put forward that there was an issue with audit quality in South Africa or that rotation "will enhance audit independence and quality". The process followed did not show that alternatives had been considered, he said — and accused the regulator of not being transparent. Media conglomerate Naspers — the owner of Media 24 and DStv holding company MultiChoice — issued a statement on Friday saying the framework had been a flop elsewhere and could cost the South African economy dearly. "South Africa's auditing standards are consistently rated as the best in the world, which makes us — and many others — q...
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