News release from the Independent Regulatory Board for Auditors (IRBA)

 
 

14 May 2008

 
 

Setting up of independent audit regulatory bodies crucial to Africa’s economic revival

 
 

The setting up and proper resourcing of independent regulators for the auditing profession in African countries would enable the continent to align itself with international accounting and auditing standards and practices and so help facilitate Africa’s participation in the global economy, said Kariem Hoosain, CEO of the Independent Regulatory Board for Auditors (IRBA).

 
 

Hoosain, who was speaking at the opening of the Conference for Regulators hosted by the IRBA last week in Johannesburg, said that doing so would make doing business in Africa a more attractive proposition.

 
 

“Embracing internationally accepted standards coupled with the oversight of an independent regulator will help stimulate capital flows and encourage foreign direct investment. It will offer potential investors certainty and an ability to compare apples with apples when assessing whether to invest in a company anywhere in Africa, “said Hoosain.

 
 

Understandably, the setting up of these regulators is not necessarily a priority for all African governments as their focus may be on some of the more significant other socio-economic challenges of the continent, such as poverty alleviation, education and healthcare for their citizens. “Hence, the onus rests with accounting institutes and the auditing profession in these countries  to take the initiative and to build a business case as to why independent regulators are needed. They need to actively engage their respective governments on this important issue. If they are serious about their own and their country’s standing in the international world of business, they need to actively lobby for the setting up of independent audit regulators. “

 
 

Vickson Ncube, CEO of the Eastern, Central and Southern African Federation of Accountants (ECSAFA) based in Nairobi said, “The conference was very enlightening. It showed us that establishing an independent audit regulator is no small task, but very important and if we as accountants in African countries want to set them up, we will need to drive the process ourselves, with all the work that entails. ”

 
 

Delegates from a number of African countries attended the conference and were given insight into what it takes to set up independent regulatory bodies. The conference focused on the IRBA’s inspection processes for both audit firms and individual audit practitioners, including the resources required and logistics involved. The conference was also attended by representatives from the Auditor-General’s office, the ACCA, SAIPA,  and SAICA.