Audit firm rotation plan meets resistance
Business and financial governance want more research into ways of strengthening audit independence
Business and financial governance structures have proposed that the Specialist Committee on Company Law look into ways of strengthening audit independence as an alternative to the Independent Regulatory Board for Auditors (Irba) decision to institute mandatory audit firm rotation from April 2023. Irba is opposed to this. The CFO Forum, the Association for Savings and Investment SA, the Institute of Directors, the King Committee and the Audit Committee Forum have made a proposal to the standing committee on finance that the Specialist Committee on Company Law take over the investigation into how to improve audit independence, replacing the Irba-initiated process. The CFO Forum represents the top 100 JSE listed companies, with a market capitalisation of R12-trillion.