INDEPENDENCE OF FIRMS
Audit inspection makes case for tougher approach, says Irba
Irba CEO says a 27% increase in the rate of unsatisfactory inspections of large audit firms justifies a tougher approach to their independence
A 27% increase in the rate of unsatisfactory inspections of large audit firms justifies a tougher approach to their independence, says Independent Regulatory Board for Auditors (Irba) CEO Bernard Agulhas. Agulhas was referring to the results of the latest audit inspection by Irba. They reveal a significant increase in the number of inspections in which the audit partner was referred to the investigative committee of Irba. The most common root cause of adverse findings at firm level was "human error". One of the most common reasons for auditors being referred for investigation by the inspection committee was for independence breaches of Irba’ s code. Agulhas said the inspections, which were done regularly, were not only critical to ensure that the highest standards were maintained, "they also provide the public and investors with the confidence that they can rely on the work of auditors". The results of the inspections reinforced the need to ensure greater levels of independence and ...
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