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Fines for offending audit firms, auditors increased

Pixabay/Stee Buissinne

JOHANNESBURG - Auditors can now be slapped with fines of up to R25-million if found to be in breach of South Africa's Auditing Profession Act.

Finance Minister, Enoch Godongwana upped the fines for auditors and audit firms found guilty of misconduct.

The Independent Regulatory Board for Auditors, or Irba, was previously limited to fines of R200,000.

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According to the new gazette individual auditors can be fined up to R5-million and audit firms R15-million but that's if they admit guilt.

If they don't, these fines are upped to R10-million and R25-million respectively, if they are found guilty.

Irba says however, the sanctions are only applicable to improper conduct that occurred after 26 April 2021.

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