ROB ROSE: Deloitte may find itself first up against the wall for shoddy work
For years, dodgy auditors got away with a slap on the wrist and their names were kept secret. It’s a state of affairs the regulator aims to change
While KPMG is hogging the headlines, it is another "big four" auditor, Deloitte, which may find itself first up against the wall for shoddy work. Last week, the investigating committee of the Independent Regulatory Board for Auditors (IRBA) met to discuss a draft charge sheet against Deloitte for its handling of the audit of failed micro-lender African Bank Investments (Abil). The board has now handed over a recommendation to its disciplinary advisory committee on whether to launch a full-scale hearing into the auditor. Bernard Agulhas, CEO of the regulator, confirms "a recommendation has been made", but can’t yet say what this is. Still, it seems a safe bet that Deloitte may soon face the regulator’s disciplinary panel.To refresh your memory, Abil collapsed in 2014 under crippling bad debts. The bank’s empowerment investors are now suing Deloitte for R2bn, claiming the auditor failed to indicate "the true state of affairs" or flag the bank’s "unorthodox accounting practices". "The ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.