Thando Maeko
2 minute read
11 Feb 2021
7:45 am

Five-year mandatory rotation for audit firms – Cosatu

Thando Maeko

Regulatory board’s 10-year rotation rule is before parliament for a final stamp of approval.

Image: iStock

Reducing the mandatory audit firm rotation period from 10 years to five and entrenching it into law will be a critical tool in safeguarding against corruption in the public and private sectors, trade union federation Cosatu said in a statement on Tuesday. “Ten years is too long given the extent of corruption and incestuous relationships between many auditors and those they are paid to audit,” it said. The Independent Regulatory Board for Auditors (Irba) instituted a rule requiring the rotation of auditing firms after 10 years. Published in 2017, it comes into effect only in 2023. The rule will however...