Black auditors are being sidelined

THE announcement by Finance Minister Malusi Gigaba of the imminent implementation of the Mandatory Audit Firm Rotation (MAFR) 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” auditing firms.

The big four auditing 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 would only be audited by the big four auditing firms.

The small and medium black auditing firms cannot even gain access to work from Auditor-General Kimi Makwetu. Black chartered accountants are only good enough if working under the umbrella of a white-controlled big four auditing firm. However, when working on their own, there are suddenly issues about their “competence”.

Gigaba is urged, in the public interest, to review the Supply Chain Management Policy of the Attorney-General of South Africa relating to the allocation of audit work.

This will reduce the unemployment rate in this sector as the black firms will employ more professionals and support staff and contribute towards poverty alleviation. Montana Park, Pretoria