The following hearings are planned to take place during November:
1. IRBA / ABM
Overview of charges:
The Respondent issued an unqualified audit opinion in relation to the Annual Financial Statements (AFS) of a state-owned company (SOC), for the year ended 31 March 2016. Following an investigation, the Respondent was charged for breach of several of the Rules Regarding Improper Conduct as a result of having issued an incorrect audit opinion in relation to his audit of the SOC’s AFS, specifically in that, he failed to disclose material non-compliance with legislation and internal control deficiencies in the Independent Auditor’s Report on the consolidated and separate AFS; he failed to maintain an attitude of professional skepticism during the conduct of the audit, he failed to obtain sufficient appropriate audit evidence to draw a reasonable conclusion on the amount of irregular expenditure and that he omitted a modification regarding the limitation of scope from his Independent Auditor’s Report.
2. IRBA / MMP
Overview of charges:
The Respondent concluded Loan Agreements with an entity associated with State Capture to fund the purchase and acquisition of shares in a Firm then registered with the IRBA (Firm). 65% of which shares were held as a nominee of an undisclosed third-party contrary to the provisions of the Auditing Profession Act and the IRBA Professional Code of Conduct (Code) Further to the above, the Respondent’s firm went on to audit a company related to the company from which the loan was obtained thus breaching the independence provisions of the Code. The Respondent has thus been charged, following an investigation, with breach of rule 2.1, 2.6 and 2.17 of the Rules Regarding Improper Conduct because of his breach of paragraphs 100.1, 110.1 and 150.1 of the Code, breach of sections 38(3) and 41(6)(e) of the Auditing Professions Act, and for behaving in a manner that tended to bring the profession into disrepute.
Should you wish to attend any of the hearings, please contact the Disciplinary Committee Secretariat Mandy Kirwin at mkirwin@irba.co.za.
You can read the IRBA notice here.
