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I continue to be disgusted by those amongst my fellow members of the auditing profession who have not told their clients that their company no longer has to be audited. It was the new Companies Act of 2008 (which actually only came into law in 2011) that changed things. If your company is owner managed and not doing hundreds of millions of turnover a year, then no audit is necessary. You don’t even have to prepare fancy financial statements. Owner managed simply means that the directors are the shareholders and (in the opinion of most professionals) still applies if a…

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When anyone mentions his “auditor”, I always ask “Is he a CA?”. The answer is invariably something like “I assume so”. What?? My last article was prompted by a new client who’s auditor had been guilty of several mis-conducts. I knew he was a registered auditor because he had performed and signed off audits every year on the client’s financial statements. In frustration, the client was considering reporting him to the Independent Regulatory Board for Auditors (IRBA). I went on to the IRBA website and found that neither he, nor his company were registered. I checked on the SAICA website…

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