Amendments to the law governing the auditing profession could give the regulator powers enjoyed by select law-enforcement agencies.
The bill the national treasury introduced to parliament had striking changes compared with the one published in August 2018. It is proposed to give the Independent Regulatory Board for Auditors (IRBA) the power to enter and search premises when investigating auditors for improper conduct.
In the first draft it was proposed only to give the IRBA powers to subpoena any person with information required to complete an investigation. This, the treasury said, was due to auditing firms not co-operating when the IRBA investigates auditors. The new proposed amendment followed public consultation which started in 2018.
IRBA chief executive Bernard Agulhas said the regulator experienced difficulties in gathering the evidence, audit files and correspondence it required for its investigations. “This led to the investigations being lengthy due to unnecessary delays,” he said.
Agulhas said it was the national treasury that proposed giving the IRBA power to search and seize evidence. He said the regulator requested only subpoena powers. Rebuilding public trust
In the 2017/18 financial year, the IRBA initiated 112 new investigations and only 60 cases were finalised. High-profile cases investigated by the regulator include two Deloitte partners who were in charge of African Bank audits before its 2014 collapse. They still face disciplinary hearings...