ROB ROSE: Wake-up call for cosy auditors club
Auditors rail against the new rule forcing companies to switch audit firms every decade. But a wave of scandals has eroded their argument
A few years ago, SA’s auditing firms responded with haughty arrogance when the regulator suggested a rule change to ensure companies change auditors every decade or so. Bernard Agulhas, the CEO of the Independent Regulatory Board for Auditors, had suggested that this would be one way to ensure "a new pair of eyes".
"If auditors aren’t properly independent and are too cosy with their clients, the audit quality will be compromised, and shareholders will not have confidence in the information reported," Agulhas said.