JAUNDICED EYE
Addressing a public sector forum this week, South Africa’s auditing bodies confided that they intend to act “aggressively” in 2019 to salvage their image.
Good luck to that. In the past few years there’s been a great deal of damage done to the reputations of accountant and auditors, all self-inflicted by the reckless, negligent, greedy, incompetent and dishonest members of the very same bodies that are supposed to “self-regulate” the profession and who are now fretting about image.
As with law, nursing, medicine, teaching and journalism, self-regulation is a convenient euphemism. It actually means according your colleagues as much licence as is possible, while shielding them from the harsher consequences of their actions.
In accountancy, the biggest cosy clubs are the SA Institute of Chartered Accountants (SAICA) and the SA Institute of Professional Accountants (SAIPA), as well as minor offshoots for management accountants and internal auditors. There is also the statutory Independent Regulatory Board for Auditors (IRBA), which has thus far proved to be neither independent of the profession nor able to regulate anything that matters.
The roll of dishonour, just in the past few years, is a startling one. For starters, there’s the R2bn collapse of African Bank, overseen by Deloitte & Touche, and there’s the Steinhoff collapse, where Deloitte didn't notice the accounting irregularities that led to $14bn — 97% of market value — being shed.