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IRBA: Draft Monetary Fine guideline
- 06 February 2025
- Auditing and Assurance
- South African Accounting Academy
Summary:
The Independent Regulatory Board for Auditors (IRBA) has requested public comments on their newly published Draft Monetary Fine guideline.
Article:
This guideline applies to monetary fines for improper conduct. It provides the framework and considerations to be taken into account by the Enforcement/Disciplinary Committee in determining an appropriate monetary fine for charge/s of improper conduct in respect of which a Respondent has been found guilty. The considerations listed are not exhaustive and not all considerations will be applicable to each matter. The Enforcement/Disciplinary Committee reserves the sole discretion to decide the relative weight to ascribe to the considerations on a matter-by-matter basis.
This guideline will ensure transparency, consistency, and proportionality in determining monetary fines.
It is important to note that the monetary fines as Gazetted by the Minister of Finance are the maximum fine limits. The Enforcement/Disciplinary Committee continue to have the power in terms of the Act to scale the monetary fine in line with the nature and gravity of the improper conduct in respect of which a Respondent is found guilty, therefore not every charge of improper conduct will attract the set maximum fine level.
Comments should be sent to [email protected] by 12h00 on 4 March 2025.
Click here to download the 11-page Draft Guideline:
https://www.irba.co.za/upload/Monetary%20fine%20guideline%20-%2030%20January%202025.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
- The Auditing Profession Amendment Act, Act 5 of 2021 was signed into law by the President and gazetted on 26 April 2021. The effect was to give the Independent Regulatory Board for Auditors (IRBA) the necessary powers to deliver more effectively on its mandate and removing some of the limitations of the Auditing Profession Act 26 of 2005 (the Act) before this amendment.
- As a registered auditor and member of IRBA, you need to be aware of the penalties that apply to you in terms of IRBA’s Disciplinary Process, as well as any related guidance that is issued by IRBA.