Country
South Africa
1. Organization
Independent Regulatory Board for Auditors(IRBA)
Basis for establishment is the Auditing Profession Act, 2005, Act 26 of 2005. (Section
3)
Public Entity reporting to the Minister of Finance through the Board
2. Board
Composition and
Members
Board Members:
Mr Willem van der Linde (Chairman)
Prof. Suresh Kana (Deputy Chairman)
Prof Amanda Dempsey
Ms Nomzamo Radebe
Mr Frank Timmins
Mr Iqbal Khan
Ms Lindelwa Majova
Ms Cynthia Mbili
Mr Yunus Suleman
Mr Lepono Lekale
Mr Freeman Nomvalo - (Ministerial Representative – National
Treasury)
Ms Rudzani Rasikhinya - (National Treasury Representative –
Alternate to Mr Nomvalo)
Alternates:
Mr Collins Mashishi
Mr H Goga
Ms Tantie Fubu
Mr Derek Block
Are the majority of the governing body non-practitioners
Yes
No
IFAIR - 28 Member profile – South Africa – updated on the 15th March 2012
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3. Funding
arrangements
Describe the main funding arrangements, including the setting and approval of the
budget and the fees, if any.
The Board is partially funded by the National Treasury, but also earns fees from
Registered Auditors. The Board (2. above) approves the Budget to be submitted to
National Treasury for approval.
Is the funding free from undue influence by the profession
Yes
No
1/3 funding comes from National Treasury; 1/3 from registrations, annual fees etc.;
1/3 from inspections. A new model for recovering fees from inspections will be
effective from 1 April 2012, whereby fees will be levied on the assurance fee base of
auditors and no longer be a direct recovery.
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4. Inspection
system
Describe whether inspections are performed by the Member body, or, whether or not in
part, by any other organization. If so, also describe the arrangements for overseeing
these inspections.
Inspections by the IRBA (the regulating body) are performed in terms of Section 47
of the Auditing Profession Act. Functions of the IRBA include promoting the
integrity of the auditing profession through conducting inspections.
Describe the requirements and practices regarding the frequency of inspections.
All attest Registered Auditors (RAs) are subject to engagement inspections, where a
sample of attest engagement files are reviewed at least once in a cycle. All audit
firms involved in the audits of public interest entities (including listed companies)
are subject to firm inspections at least once in an inspection cycle. An RA/Firm must
be found satisfactory in a cycle before proceeding to the next cycle. The length of
engagement and firm inspection cycles are 3 years.
The objective of engagement inspections is to monitor RAs’ compliance with the
relevant professional standards in the performance of the attest function. The
objective of firm inspections is to inspect the design and implementation of an audit
firm’s system of quality control. Inspections are performed by qualified
professionals employed on a full time basis by the IRBA.
Review decision is either:
• Satisfactory = inspection in next inspection cycle, or
• Not-satisfactory = re-inspection in one year’s time, or
• Investigation Committee referral = disciplinary action by the IRBA.
Referral is made to the Investigation Committee if:
• Re-inspection indicates failure to implement corrective action, or
• Flagrant disregard of professional standards, or
• Refusal to co-operate in the review process, and
• The Public is at Risk.
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Do you have the responsibility for recurring inspections of audit firms undertaking
audits of public interest entities
Yes
Yes
No
Is this responsibility directly or through oversight of inspection undertaken by
professional bodies
Directly
Directly
5. Audit and
Financial Market
Through oversight
The number of listed companies is: 406 with as market capitalization of R6120bn
Audit Firms: 1980 firms
Registered Auditors: 4398 individual registered auditors
6. Main other
tasks performed
by Member
The functions of IRBA also include:
a. To develop and maintain auditing standards which are internationally
comparable;
b. To develop and maintain ethical standards which are internationally comparable;
and
c. To provide an appropriate framework for the education and training of properly
qualified auditors.
d. To provide for Disciplinary Procedures
7. Other
information
website : http://www.irba.co.za
Street address : Building 2, Greenstone Hill Office Park,
Emerald Boulevard, Modderfontein
Postal address: PO Box 8237, Greenstone, 1616
TEL : +27 87 940 8800
Fax : +27 87 940 8874
Docex : 158, Johannesburg
Email : board@irba.co.za
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8. Major Events
and Activities
2011: National road shows (update on the profession)
August 2011: Training to RAs countrywide on New Companies Act and Consumer
Protection Act
2011: The IRBA is appointed as joint inspectors with the Financial Intelligence
Centre on auditors’ compliance with Anti Money Laundering legislation
2011: The IRBA is recognised by the European Commission as equivalent to the best
in the world
2010 and 2011: South Africa is rated by the World Economic Forum as number one in
the world for its auditing standards
September 2011: The World Bank awards the IRBA the contract to implement an
inspections regime in Zimbabwe, a neighbouring country.
Jan/Feb 2012: Training to RAs countrywide on Ethics for Registered Auditors in
terms of the IRBA’s Code of Professional Conduct
2012: The IRBA is appointed as the regulator for Broad-Based Black Economic
Empowerment Services to implement government’s transformation initiatives
IFAIR - 28 Member profile – South Africa – updated on the 15th March 2012
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