Chartered accountants in court bid to halt Irba rule on changing auditors
Regulation requires public-interest entities — including listed companies, state-owned companies and large private companies — to change auditors every decade
An association of Gauteng-based chartered accountants has initiated legal action in the North Gauteng High Court to halt the implementation of the regulation that requires firms to change their auditors every 10 years. The East Rand Association of Chartered Accountants (Era) is attempting to block the controversial move by the Independent Regulatory Board for Auditors (Irba), aimed at beefing up auditor independence. The Irba regulation, effective from 2023, will require public-interest entities — which include listed companies, state-owned companies and large private companies — to change their auditors every 10 years. On Friday, Era chair Jarie Cerny said two summonses had been issued in its fight against mandatory rotation. “One is for a review of the Irba’s decision, which we believe was wrong because it did not consider alternatives, including an increase in monitoring of audit firms.” A second summons has been issued in a bid to get documents relating to meetings between Irba ...
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