Maximum Monetary Fines in terms of Auditing Profession Act

13 October 2022
Accounting
South African Accounting Academy

New proposed maximum amounts for different categories are as follows:

A proposed maximum amount of—
1. R5 million per charge, as the amount envisaged in section 51(2) of the Act, which may be imposed on an individual registered auditor who admits guilt as contemplated in section 49(4)(a) of the Act; and
2. R15 million per charge, as the amount envisaged in section 51(2) of the Act, which may be imposed on a firm of auditors that admits guilt as contemplated in section 49(4)(a) of the Act; and
A proposed maximum amount of—
1. R10 million, as the amount envisaged in section 51B(3)(b) of the Act, which may be imposed on an individual registered auditor who is charged and found guilty or if the registered auditor admits guilt to the charges; and
2. R25 million, as the amount envisaged in section 51B(3)(b) of the Act, which may be imposed on a firm of auditors that is charged and found guilty or if the firm admits guilt to the charges.

It is proposed that the amounts in paragraph 1(a) and (b) be increased annually, from 1 October, at the rate of the Consumer Price Index.

Due date for comments to [email protected] = 16 October 2022

Click here to download the Gazette Notice:

https://www.irba.co.za/upload/GG%20Notice%2046917%20No_%202504.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.
In terms of sections 51(2) and 51B(3)(b) of the Act the Minister must determine the amount referred to in the [relevant] subsection and on the recommendation of the Regulatory Board after publishing in the Gazette the proposed amount for comment for at least 30 days.
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.

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