IRBA Roadshow Drives Home Audit Quality Priorities
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The Independent Regulatory Board of Auditors (IRBA) wrapped up its 2024 national roadshow with a sharp focus on findings from its latest Public Inspections Report for 2024. Across Johannesburg, Durban, and Cape Town, over 350 auditors engaged on the latest challenges and improvements in audit quality.
Key findings from the 2024 report:
Audit quality is improving, with a rise in positive inspection outcomes and fewer referrals for investigation.
Deficiencies remain—especially in professional scepticism, risk assessment, financial statement disclosures, and overreliance on IT without sufficient controls.
Small and medium firms struggle most with scalable systems, documentation, and consistent engagement quality reviews.
The report also notes the profession's progress in adopting new quality standards (ISQM 1 and 2), yet flagged weak implementation in some areas. Most firms are taking the Remedial Action Process seriously, but many still fall short in root cause analysis and measurable action planning.
Director of Inspections, Ntlambi Gulwa, emphasised leadership accountability: “Culture and tone at the top are central to quality. We expect firms to show more than compliance—we want clear, documented judgment and evidence.”
National Treasury’s Shabeer Khan connected audit quality to national stability, saying, “Audit is not just regulation. It underpins investor trust and economic confidence.”
Panel discussions covered how firms are addressing recurring issues, rolling out ISQM1, and leveraging technology responsibly. The IRBA’s inspections also spotlighted common tech-related failures, like using system reports without verifying reliability.
