Audit Partner Rotation ensures auditor independence
Section 92 of the Companies Act 71 of 2008, stipulates that audit partner rotation is mandatory and further details strict audit partner rotation requirements. Section 92 of the Act allows for an Audit Partner Rotation every 5 years.
Apart from the mandatory audit partner rotation, Section 94 of the Companies Act requires that state owned companies, public, or other companies that are required by their Memorandum of Incorporation to have an audit committee and appoint the members thereof at each AGM.
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Why is auditor independence crucial?
Auditor independence is a fundamental pillar of the audit profession. Stakeholder confidence in audit opinions is dependent upon integrity of the audit professionals issuing those opinions. Auditor independence solidifies the public’s trust within a company’s financial system as well as interested shareholders and investors.
Controversies, irregularities or misrepresentation within the auditing industry can adversely impact a country’s financial reputation, especially when well-known audit firms are involved. Not only do such circumstances affect a country’s reputation but it also undermines the public’s trust which in turn, leads to lower market participation and a stagnant investment community. Partner rotation aims to minimise or quash such irregularities.
What is the difference between Audit Partner Rotation and Mandatory Audit Firm Rotation (MAFR)?
Why choose us?
The audit partner rotation rules set out by the Act are specific to ensure auditor independence and thereby increase the quality of financial audits. We pride ourselves on remaining professional and impartial when auditing a company’s financials. As an auditing firm, commercial interests within a company’s audit cannot be ignored, therefore we strive to provide appropriately balanced, accurate and fair auditing practices. Our audit quality is of the highest standard and we adhere to all the industry’s ethics and codes of conduct to ensure we deliver a professional service in an unbiased and independent manner.
Please contact us to learn more about our audit services.