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Bernard Peter Agulhas

Chief Executive Officer

when it comes to the fourth “line of defence”, external audit, we

believe that greater powers will enable the IRBA to act more swiftly

in identifying, investigating and disciplining errant auditors, and

then handing down punishment that is more appropriate to the

nature of the transgression. In this way, we can continue to restore

confidence in the regulator and auditors.

In our other efforts to restore confidence in the profession, our

Standards and Inspections departments have been working on

an Audit Quality Indicators project that will help firms and audit

committees to assess the quality of audit work.

In July, the IRBA issued a call for South African audit firms to

produce transparency reports that should provide insight into

audit firm operations, governance, leadership, culture, ethics, audit

quality, transformation and audit engagements, among others.

This initiative was first considered by the IRBA last year, but it now

coincides with a review of the International Auditing and Assurance

Standards Board’s International Standard on Quality Control (ISQC)

1 which is currently being revised. In terms of the IRBA’s restoring

confidence efforts, these two initiatives are key.

Finally, earlier in September the first working meeting of the African

Forum of Independent Accounting and Auditing Regulators (AFIAAR)

was held in Maputo, Mozambique. AFIAAR has already achieved

significant milestones, such as formulating and signing a charter

at the inaugural meeting in Victoria Falls, Zimbabwe, in March this

year. During the September meeting, members gave input to the

two-year strategy that was duly unanimously adopted. This bodes

well for the continued process of continental integration of audit

and accounting regulation in Africa. Through the promotion of the

adoption of financial reporting standards and enforcing compliance,

independent audit regulators can play a critical role in building

confidence in capital markets on the continent.

Issue 43 | July-September 2018