Audit firm rotation gets the nod
Parliament’s finance committee not convinced decision will lead to transformation and criticises auditors’ board for lack of discussion
Parliament’s finance committee is not convinced that the introduction of mandatory audit firm rotation will advance transformation of the accounting profession as claimed, but has decided to support the Independent Regulatory Board for Auditors’ (Irba’s) decision on the basis that the case for it is stronger than the case against it. But, while endorsing the measure, albeit in a lukewarm fashion, the committee came down hard on Irba for what it believed was inadequate consultation before it decided to introduce it as of April 2023. Finance Minister Malusi Gigaba has endorsed the Irba decision, which is strongly opposed by the chief financial officers of the top 100 companies listed on the JSE. It is also opposed by the Association for Savings and Investment SA, the Institute of Directors, the King Committee and the Audit Committee Forum. The main grounds for opposition are the disruptive effects of the rule, the cost of implementing it, the removal of choice from audit committees an...
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