Spike in JSE-listed firms rotating auditors
Some 64 firms have changed external auditors in the past two years, says regulator
As SA’s audit profession is still picking up the pieces of its shattered reputation, more listed companies are switching their external auditors. According to the Independent Regulatory Board for Auditors (Irba), of the companies listed on the JSE, 64 changed their external auditors in the past two years. The board, which started tracking announcements about changing auditors in January 2017, said the pace of auditor rotations almost doubled among listed companies. However, it said that despite reputational concerns caused by audit failures at KPMG after revelations relating to Gupta-owned companies and the collapse of VBS Mutual Bank, the spike seemed to be fuelled by the looming mandatory audit firm rotation requirement which comes into effect in April 2023. The regulator said only one of the 64 companies named reputational risk as its reason for changing KPMG as its external auditor. It said five of those who announced rotations in 2018 were previously KPMG clients but most of th...
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