Untransformed auditing

The announcement by Finance Minister Malusi Gigaba of the imminent implementation of mandatory audit firm rotation is significant. The auditing profession remains one of the most untransformed professions in the new democratic dispensation.

It is debatable, however, if this move will realistically lead to transformation, given that the transformation charter in the auditing profession remains unsigned by the “big four” audit firms.

The big firms and JSE-listed companies are acting in concert to ensure that black audit firms are excluded from audits in the private sector. The big four banks have stated categorically that they will only be audited by the “big four” audit firms.

Small and medium-sized black auditing firms cannot even get work from the auditor-general because its supply chain management policy imposes onerous conditions on medium-sized black firms which they cannot meet but which are inherently geared towards the “big four”.

Gigaba should, in the public interest, review the supply chain management policy of the auditor-general relating to the allocation of audit work. This will reduce the unemployment rate in the sector as black firms will employ more professionals and support staff and contribute towards poverty alleviation.

Jeffrey Mothuloe

Montana Park