SAICA has no legal mandate to lead independent inquiries

Johannesburg, Wednesday, September 20, 2017 - On Wednesday, 20 September 2017, it was announced that the South African Institute of Chartered Accountants (SAICA) intends to launch an independent enquiry into KPMG’s conduct, following the events which transpired over the last few months regarding the firm’s involvement in the audit of Linkway Trading and the SARS report.

The Independent Regulatory Board for Auditors (IRBA) and Parliament have previously publicly announced that the IRBA is performing an investigation into KPMG regarding the above matters, in terms of the Auditing Profession Act, Act 26 of 2005, the IRBA’s governing legislation. The IRBA will be reporting back to Parliament on progress with its investigation.

We confirm that SAICA, as the member body, does not have the legal mandate to lead independent inquiries into the conduct of audit firms, and further confirm that the IRBA will follow its due process in terms of its founding legislation, to draw the investigation to its rightful conclusion as quickly as possible. We call on the market to respect the IRBA’s due process, as required by its legislation, and allow it to run its proper course.

The IRBA’s mandate is to protect the financial interests of the public, and it will diligently deliver on this mandate in a manner that is independent and fair to all parties.

Ends

More about the IRBA:

The IRBA is a public protection statutory body established to protect the financial interests of the public by ensuring registered auditors and their firms deliver services of the highest quality. It upholds audit firm independence to ensure that audit quality is such that it enhances the accuracy and credibility of financial performance reporting. In this way, the IRBA has an important role to play in building the reputation of South Africa as an investment market for both local and global investors and driving economic growth for the country.

As an internationally recognised regulator of the auditing profession and other assurance services relevant to the South African environment, it has been recognised by the World Economic Forum as the top independent audit regulator worldwide for seven consecutive years for the strength of its audit controls and standards. The IRBA also registers suitably qualified accountants as auditors, who must adhere to the highest ethics standards, and promotes the auditing profession through the effective regulation of assurance conducted in accordance with internationally recognised standards and processes.