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FROM THE CEO ’ S DESK
As the year draws to a close, it is once again time to take stock
of where we find ourselves – in a world, to my mind, which
seems to be dominated by chaos. From the perspective of a
foreign country – I caught a news broadcast on international
affairs while I was at the United Nations Conference on Trade
and Development (UNCTAD) conference on International
Standards andAccounting Reporting in Geneva – it is not only
obvious that SouthAfrica plays an integral role in the world, but
also does not fare too badly when compared with other
countries. This, insofar as unrest in labour markets, political
mayhemand war are concerned.
However, my presentation in Geneva focused on the high-
level segments on compliance and enforcement mechanisms
for corporate reporting mechanisms. While we might ponder
the significance of compliance and reporting in the bigger
scheme of things, we cannot help but consider that if those
very mechanisms were in place, the world might indeed be in a
better space.
The United Nations truly unites nations. What was particularly
pleasing during my time in Geneva was the number of times
South Africa was recognised and revered – whether in the
context of its number one ranking for the strength of its auditing
and reporting standards, its leadership role in Integrated
Reporting and corporate governance or simply for the manner
in which it reaches out to other jurisdictions to encourage and
support the implementation of good practices.
Back home, it is particularly pleasing that the value that the
profession and the IRBAadd to the country and its economy is
now being recognised by parliament and its committees.
Since our last presentation to parliament, there has been an
improvement in communication with the committees and as a
copy of the official letter on page 18 indicates, parliament is
also proud of our achievements. We must continue to
demonstrate the importance and relevance of auditors and
auditing to our financial markets – especially in difficult
financial times. In his mid-term budget policy statement
delivered on 22 October, Minister of Finance, Nhlanhla Nene,
painted a bleak outlook with growth forecasted at just over 1%
and increasing only to 3% in 2017. While this means even
more tightening of belts, it also signals the need for closer
cooperation among all stakeholders, includingAfrica.
The Minister acknowledged that there is insufficient progress
in increasing incomes and reducing poverty, which in turn
impact on social progress and human development. But
equally important are service delivery and continued fights
against waste, fraud and corruption. Here is where auditors
can make a major contribution and continue to play a
significant role.
So, it is not only important to achieve recognition for our
achievements in auditing, reporting and governance. It is even
more important that progress in these disciplines be applied to
achieve the objectives of the state, not only when the economy
is booming, but when – and especially when – it is not.
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Issue 27 July - September 2014
Bernard Agulhas' Geneva presentation at the UN Conference on
Trade and Development honed in on compliance and enforcement
for corporate reporting mechanisms