IRBA Newsletter Issue 52

Issue 52 | October-December 2020 18 EDUCATION & TRANSFORMATION cont. Phase 2: Engaging with Our Stakeholders - IMMERSIVE ENGAGEMENTS Engaging in immersive conversations with stakeholders across the ecosystem to understand their tensions, aspirations and perceptions of the RA brand and the audit profession. STAKEHOLDERS The IRBA engaged with investors, practicing RAs, trainees, ADP graduates, RAs that have left the audit profession, professional bodies in the sector and other regulators. TOPICS EXPLORED The immersive conversations were candid and explored topics such as social injustice and ethics, the meaning of trust, perceptions of the IRBA and the audit profession and what is required to build a future-fit audit profession. - THIS IS WHAT WE HEARD… The audit profession has built credibility, expertise and professionalism over time and it is important that we maintain and, in some instances, restore these. There is a need for greater transparency as well as strengthened and more accountable governance structures across the financial reporting value chain. Maintaining the relevance of RAs and the audit product is critical. This includes redefining the competencies and skillset required of auditors. A review of the audit as a compliance, ‘tick-box’ exercise vs a value- add service is needed. The expectation gap, including the public’s expectation of the auditor’s role in relation to fraud, contributes to the pressures that RAs face. The audit environment provides an opportunity for learning, problem solving, working with high- performing individuals and having diverse experiences. The regulatory approach of the IRBA requires a reflection and review, as the environment changes. There is also a need for collaboration between the IRBA and the audit profession to effectively fulfill our roles and contribute to a sustainable future for all. There is a need for greater awareness of the audit profession and the work of RAs, to attract talent to the audit profession. The current positioning of the RA brand and the audit profession is perceived as being unrelatable to young talent. The narrative about corruption and lack of leadership continues to dominate the media, engendering further mistrust in companies and institutions, while also reflecting poorly on the audit profession. Therefore, it is within this context that the RA has an even more important role to play in standing up for, and upholding what people know to be, a noble profession that is a guardian of public interest. As the audit profession, we need to rebuild the bonds of trust and develop a single-minded commitment that injects “soul and meaning” into what it means to be an RA in South Africa. A key success factor in repositioning the audit profession and restoring trust in the competence of RAs and the application of ethics will require us to work together. Collaboration across the ecosystem will present a critical step towards building an RA brand that is future fit, leading to an attraction of the right calibre of talent to the audit profession. While the IRBA has been working on a series of projects aimed at restoring confidence in the audit profession, the messages and themes that were heard require that the IRBA reflects deeply