Accounting firms voice disapproval of mandatory audit firm rotation
EY Africa and PricewaterhouseCoopers warn against rushing in to change the system there have been no crises of independence of SA’s auditing profession
Further work was needed to understand the effect and consequences of mandatory audit firm rotation that the Independent Regulatory Board for Auditors (IRBA) has decided on, EY Africa CEO Ajen Sita and PricewaterhouseCoopers (PwC) CEO Dion Shango said Friday. They told members of Parliament’s finance committee during a public hearing on the IRBA decision that SA did not have a known crisis of the independence of its auditing profession, so should not rush into changing the system. "The work is simply too important for our country to get wrong," Sita stressed, noting that there had not been any audit failure in the past 20 years that could be attributed to a failure of independence. "The World Economic Forum’s assessment of South African audit standards and capital markets as being number one in the world for the last seven consecutive years is testament to the fact that existing regulations and practices are already working," he added. Shango argued that mandatory audit firm rotation...
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