IRBA: Monetary Fine Guideline

IRBA: Monetary Fine Guideline

• 13 August 2025
• Guides
• South African Accounting Academy

Summary:
The Independent Regulatory Board for Auditors (IRBA) has published their new Guideline for the IRBA's Enforcement/Disciplinary Committee in determining for Registered Auditors/Registered Candidate Auditors found guilty of improper conduct.
Article:

While section 51(1) and section 51B(3) of the Act sets out a range of sanctions that the Enforcement (ENCOM)/Disciplinary Committee (DISCOM) may impose, this guideline applies to instances where ENCOM/DISCOM has determined that monetary fines should be imposed for improper conduct.

It provides the framework and considerations to be taken into account by the ENCOM/DISCOM 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 ENCOM/DISCOM reserves the sole discretion to decide the relative weight to ascribe to the considerations on a matter-by-matter basis to ensure that the sanction is fair and reasonable under the circumstances.

This guideline is aimed at ensuring transparency, consistency, and proportionality in determining monetary fines.

Contents:

• Introduction
• Transgressions occurring prior to 15 June 2023
• Transgressions occurring on or after 15 June 2023 up until 5 June 2024
• Transgressions occurring on or after 6 June 2024
• Annexure A – Explanatory note on applicable monetary sanctions
• Annexure B – Examples of Mitigation submissions by respondent on monetary fines
• Annexure C – Government Gazette Notice of 15 June 2023
• Annexure D – Factors considered by the ENCOM/DISCOM in determining whether a matter is high priority or priority
• Annexure E – Government Gazette Notice of 6 June 2024
• Annexure F – Fines Matrix (considerations in determining monetary fines for transgressions occurring on or after 6 June 2024)
• Annexure G – Examples of the severity of transgressions (considerations by the ENCOM/DISCOM)

It is important to note that the monetary fines as Gazetted by the Minister of Finance on 6 June 2024 are the maximum fine limits. Refer to our previous Alert dated 13 Jun 2024 at https://accountingacademy.co.za/news/read/registered-auditors-new-maximum-fines-for-improper-conduct-gazetted  

Access the Gazette Notice 4933 at https://www.gov.za/sites/default/files/gcis_document/202406/50765gon4933.pdf 

The independent and non-executive Enforcement/Disciplinary Committee [ENCOM/DISCOM] continue to have the sole discretionary power in terms of the Act to scale the monetary fine in line, inter alia, with the nature and gravity of the improper conduct in respect of which an RA is found guilty, therefore not every charge of improper conduct will attract the set maximum fine level. 

Appropriate sanctioning enforces compliance with the legislative framework, promotes public trust in the profession and in the regulation of the profession, and deters other RAs/RCAs from committing similar improper conduct.

Click here to download the 12-page Guide:

https://www.irba.co.za/upload/Monetary%20fine%20guideline%20-%2028%20July%202025%20.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.

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