Seeking a brighter future for auditing in South Africa

Abstract

This is a Position Paper on structural reforms in the South African audit industry. This Paper is presented at a time where the existing legislation regarding the auditing industry is being reviewed by a committee consisting of South Africa's Public Protector and a retired judge with a view to producing a Bill to be tabled for approval in Parliament. The authors hereby heed calls made by the drafters of the new statutory framework to present suggestions regarding the transformation of the audit industry in South Africa and addressing existing shortcomings. The authors propose the formation of a new body (or the transformation of the existing Public Accountants' and Auditors' Board) to perform additional functions which would strengthen the statutory framework within which auditors operate. The proposals also discuss and address social priorities and imbalances in South Africa.