GENERAL NEWS c o n t .
IRBADirectorsAppointed to IFACBoards
Congratulations to Imran Vanker, Director Standards, and
Laine Katzin, Director Education, Training & Professional
Development, for being nominated to represent the IRBA and
SA on two of the International Federation of Accountants
(IFAC) committees.
Imran's nomination to the IFAC International Auditing &
Assurance Standards Board (IAASB) has been approved by
the IFAC Nominations Committee and the IFAC Board. SA
was last represented on this committee about 10 years ago;
we are pleased that we have managed to once again secure a
seat.
Laine has been reappointed to the IFAC International
Accountants Education Standards Board (IAESB).
Reappointment is not automatic and South Africa had to go
through a nominations process afresh. This is a particularly
critical appointment as the IRBA revisits the competence
requirements for auditors and implements the ADP. This
appointment demonstrates that the international community
continues to value this country's contribution.
“These achievements do not only illustrate confidence in us,
but contribute towards instilling future confidence in the
important work that we do. Well done to everyone and for
continuing to make us proud as the IRBA and SA,” said IRBA
CEOBernardAgulhas.
audit. “With the introduction of the Independent Review in the
Companies Act, an alternative assurance engagement to
audit, the number of companies requiring an audit has
decreased. With only a slight corresponding decrease in
auditors, this means the ratio of auditors to audited entities has
actually increased,” he said.
On addressing the unlimited liability issue, he said the IRBA,
with the World Bank, has made recommendations to Treasury
to introduce legislation that will create limited liability
partnerships. The aim is to provide the required comfort to
auditors that they will no longer be the subject of litigation by all
and sundry.
FacingChallenges Head-On
A recent opinion piece published in the Financial Mail (August
27-September 2 2015) put a spotlight on the future of auditing
in the country. According to the article, “South Africa could be
on the brink of a large corporate failure unless systemic
constraints in the auditing profession are addressed urgently”.
Areas of concern highlighted in the article include “the
profession's fading appeal … increased regulation, the threat
posed by unlimited liability in the event of auditing errors and
growing scrutiny by the IRBAof audit files and audit firms”.
IRBA CEO Bernard Agulhas, however, noted that though the
general perception is that the auditing profession is shrinking,
there are sufficient numbers to service entities that require an
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Issue 31 July - September 2015
Imran Vanker and Laine Katzin
