Disciplinary powers to be strengthened for auditing regulators
Proposed amendments include increasing Irba’s oversight powers and an open-ended fine structure, decided by the finance minister
The Treasury is proposing legislative amendments to strengthen the disciplinary provisions of the Auditing Profession Act, and to increase the amount of the fine that can be imposed on a registered auditor found guilty of improper conduct. The Treasury’s director of legislation Ailwei Mulaudzi briefed parliament’s finance committee on Tuesday on the amendments, which are contained in the Financial Matters Amendment Bill. The bill proposes amendments to a number of different acts. The Auditing Profession Act currently empowers the disciplinary committee of the Independent Regulatory Board for Auditors (Irba) to impose a fine not exceeding the amount calculated according to the ratio for five years’ imprisonment prescribed by the Adjustment of Fines Act. Currently this amounts to R200,000, which Mulaudzi said is an “inadequate deterrent”. Instead, the bill proposes empowering the finance minister to determine the maximum amount. Irba board members will be prohibited, in terms of the b...
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