At least 30 countries are implementing audit rotations, says watchdog
Rotation of audit firms is being implemented in many developed and developing economies, SA’s audit watchdog said on Monday, responding to criticism that it is an unproven strategy that has failed where it has been tried. The CEO of the Independent Regulatory Board for Auditors (Irba), Bernard Agulhas, said research conducted in G20 countries and member countries of the International Forum of Independent Audit Regulators (IFIAR — a global forum representing 52 independent audit regulators) showed that more than 30 had or would implement mandatory audit firm rotation following a European Union (EU) directive. Non-IFIAR countries such as Kenya, Nigeria and others in Africa had already implemented the measure. Irba’s intention for SA to introduce mandatory audit firm rotation every 10 years, starting in April 2023, is intended to improve auditors’ independence. But the proposal has drawn a barrage of criticism.
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