eFinder

eFinder

Home › Audit Quality Decline › Article

After the Bell: Audit alarm bells ring as SA’s watchdog finds too many rubber-stamp risk zones

Daily Maverick · · 800 words · By Neesa Moodley
Audit Quality Decline Regulatory oversight failures Technology Risk in Finance
open_in_new Read the original article: https://www.dailymaverick.co.za/article/2026-04-20-after-the-bell-audit-alarm-be…

psychologyDetected Techniques

warning
Loaded Language 80% confidence
Using words with strong emotional connotations to influence an audience.
warning
Name Calling / Labeling 50% confidence
Attaching a negative label to a person or group to reject them without evidence.

fact_checkFact-Check Results

16 claims extracted and verified against multiple sources including cross-references, web search, and Wikipedia.

info Single Source 9
schedule Pending 6
help Insufficient Evidence 1
info
“The Independent Regulatory Board for Auditors’ (IRBA) 2025 Public Inspections Report on Audit Quality tells us that too many audit files are falling short, too many firms still have weak quality systems and some of the same old defects keep returning like mould in a damp ceiling”
SINGLE SOURCE
The web search results confirm that IRBA reports on audit quality and that deficiencies are noted. However, no multiple independent sources or authoritative references confirm the specific finding that 'some firms had not designed or implemented effective quality management systems' as a recurring, independently verified fact.
menu_book
wikipedia NEUTRAL — The International Forum of Independent Audit Regulators (IFIAR) is a global member organization comprising independent audit regulators from 56 jurisdictions. IFIAR was established in Paris in 2006. I…
https://en.wikipedia.org/wiki/International_Forum_of_Indepen…
travel_explore
web search NEUTRAL — IRBA: 2025 Public Inspections Report. 18 March 2026. Miscellaneous. South African Accounting Academy.Therefore, the IRBA continues to perform firm-wide and assurance engagement file inspections at var…
https://accountingacademy.co.za/news/read/irba-2025-public-i…
travel_explore
web search NEUTRAL — Public inspections report on audit quality 2021.It should be noted that this report is not designed to provide assurance regarding audit firms’ quality control systems or assurance work, or the qualit…
https://www.irba.co.za/upload/IRBA+Public+Inspections+Report…
+ 1 more evidence source
info
“in 2025, only 28% of audit engagements inspected were assessed as meeting the relevant standards, down from roughly 45% the year before.”
SINGLE SOURCE
The provided evidence for this claim consists only of general web search results related to '2025' and 'Wikipedia' entries that do not mention audit quality percentages or declines. There is no evidence from multiple independent sources or authoritative references to confirm the specific statistics (28% vs 45%) regarding audit engagements in 2025.
menu_book
wikipedia NEUTRAL — Malcolm in the Middle is an American television sitcom created by Linwood Boomer for the Fox Broadcasting Company. The series premiered on January 9, 2000, and ended on May 14, 2006, after seven seaso…
https://en.wikipedia.org/wiki/Malcolm_in_the_Middle
menu_book
wikipedia NEUTRAL — IN, In or in may refer to:
https://en.wikipedia.org/wiki/In
menu_book
wikipedia NEUTRAL — The inch (symbol: in or ″) is a unit of length in the British Imperial and the United States customary systems of measurement. It is equal to ⁠1/36⁠ yard or ⁠1/12⁠ of a foot. Derived from the Roman un…
https://en.wikipedia.org/wiki/Inch
+ 3 more evidence sources
info
“The IRBA says the decline was accompanied by an increase in incorrect audit opinions, fundamental ethical breaches and cases where there was insufficient evidence to support the opinion issued.”
SINGLE SOURCE
The web search results provide general discussions on audit quality, ethics, and independence, but none of the provided snippets independently confirm the specific linkage that 'the decline in audit quality in 2025 was associated with an increase in incorrect audit opinions, fundamental ethical breaches, and instances lacking sufficient supporting evidence' from multiple sources.
menu_book
wikipedia NEUTRAL — The Housemaid is a 2025 American erotic psychological thriller film directed by Paul Feig and written by Rebecca Sonnenshine. It is based on the 2022 novel by Freida McFadden, and stars Sydney Sweeney…
https://en.wikipedia.org/wiki/The_Housemaid_(2025_film)
menu_book
wikipedia NEUTRAL — 2025 (MMXXV) was a common year starting on Wednesday of the Gregorian calendar, the 2025th year of the Common Era (CE) and Anno Domini (AD) designations, the 25th year of the 3rd millennium and the 2…
https://en.wikipedia.org/wiki/2025
menu_book
wikipedia NEUTRAL — Nuremberg is a 2025 American psychological thriller historical drama film written, co-produced, and directed by James Vanderbilt. Based on the 2013 book The Nazi and the Psychiatrist by Jack El-Hai, t…
https://en.wikipedia.org/wiki/Nuremberg_(2025_film)
+ 3 more evidence sources
info
“The report lists familiar weaknesses: Revenue recognition; Journal entries; Financial statement disclosures; Going concern assessments; Significant estimates and judgements; Reliance on IT controls; Weak documentation; and Poor professional scepticism.”
SINGLE SOURCE
The web search results confirm that the IRBA reports on audit quality and that deficiencies are common themes. However, none of the provided snippets list the specific recurring weaknesses mentioned (Revenue recognition, Journal entries, etc.) as confirmed by multiple independent sources or authoritative references.
travel_explore
web search NEUTRAL — Jan 14, 2026 · Geoeconomic confrontation, interstate conflict and extreme weather emerge as top risks for the year, says World Economic Forum Global Risks Report 2026.
https://www.weforum.org/press/2026/01/global-risks-report-20…
travel_explore
web search NEUTRAL — Jan 14, 2026 · The Global Risks Report 2026 analyses global risks through three timeframes to support decision-makers in balancing current crises and longer-term priorities.
https://www.weforum.org/publications/global-risks-report-202…
travel_explore
web search NEUTRAL — Jan 15, 2025 · The Global Risks Report 2025 analyses global risks to support decision-makers in balancing current crises and longer-term priorities.
https://www.weforum.org/publications/global-risks-report-202…
info
“The IRBA says some firms had not designed or implemented effective systems of quality management at all.”
SINGLE SOURCE
travel_explore
web search NEUTRAL — firm effectively loses the business of the audit client, regardless of whether or not the. partners in the firm are suitable and capable of performing the audit. The EU has adopted.Table 1: Countries …
https://www.researchgate.net/publication/335777062_An_analys…
travel_explore
web search NEUTRAL — The primary reason for implementing MAFR is the concern of the IRBA that the quality of audits performed by audit firms on South African listed companies is deteriorating.
https://jefjournal.org.za/index.php/jef/article/view/227/614
travel_explore
web search NEUTRAL — The IRBA Inspection Reports Point 3 relates to the IRBA annual inspections on selected audit firms to evaluate their performance on a selection of audit engagements, as well as the design and effectiv…
https://saaa.org.za/Downloads/Publications/AUD023+An+analysi…
info
“In some cases, engagement quality reviews were weak, absent or ineffective.”
SINGLE SOURCE
The web search results are general and do not contain specific information regarding the weakness, absence, or ineffectiveness of engagement quality reviews as reported by the IRBA, preventing corroboration from multiple sources.
travel_explore
web search NEUTRAL — While it is important to be honest about your weaknesses, there are a few traits that are not appropriate or beneficial to mention in a job interview. This includes tardiness, poor attention to detail…
https://www.betterteam.com/strengths-and-weaknesses
travel_explore
web search NEUTRAL — B: Well, I need e.g. some flour, 26)... eggs and 27) . butter.
https://www.euroki.org/koza/e-fill-in-some-any-many-or-mucha…
travel_explore
web search NEUTRAL — The spike glycoprotein of 2019-nCoV contains a cleavage absent in CoV...
https://www.sciencedirect.com/science/article/pii/S016635422…
info
“Some firms had poor risk assessment processes, insufficient training, weak independence safeguards and inadequate remediation systems.”
SINGLE SOURCE
The web search results are general and do not contain specific details regarding the findings that 'some firms exhibited poor risk assessment processes, insufficient training, weak independence safeguards, and inadequate remediation systems' as reported by the IRBA, preventing corroboration from multiple sources.
travel_explore
web search NEUTRAL — Meeting the immediate and long-term needs of our most underserved neighbors is only possible if we know exactly how we’re measuring up to our ambitious goals. We are rigorous about data collection, an…
https://some.org/services/housing/
travel_explore
web search NEUTRAL — Since 1970, SOME has been a care provider and a beacon of hope to residents in our nation’s capital. Our services are available to individuals, families, senior citizens, veterans and those affected b…
https://some.org/services/
travel_explore
web search NEUTRAL — SOME provides material aid and comfort to our vulnerable neighbors in the District, helping them break the cycle of poverty and homelessness through programs and services that save lives, improve live…
https://some.org/
info
“The regulator says firm-level compliance improved modestly, with “good outcomes” rising from 23% to 30% among firms inspected.”
SINGLE SOURCE
The web search results provide general information on financial analysis and stability, but none of the provided snippets independently confirm the specific statistical improvement ('good outcomes' rising from 23% to 30%) in firm-level compliance reported by the IRBA.
menu_book
wikipedia NEUTRAL — Financial analysis (also known as financial statement analysis, accounting analysis, or analysis of finance) refers to an assessment of the viability, stability, and profitability of a business, sub-b…
https://en.wikipedia.org/wiki/Financial_analysis
menu_book
wikipedia NEUTRAL — Financial stability is the absence of system-wide episodes in which a financial crisis occurs and is characterised as an economy with low volatility. It also involves financial systems' stress-resilie…
https://en.wikipedia.org/wiki/Financial_stability
menu_book
wikipedia NEUTRAL — The productivity paradox refers to the slowdown in productivity growth in the United States in the 1970s and 1980s despite rapid development in the field of information technology (IT) over the same p…
https://en.wikipedia.org/wiki/Productivity_paradox
+ 3 more evidence sources
help
“But referrals for investigation also rose from two firms to five.”
INSUFFICIENT EVIDENCE
No evidence was gathered for this claim, and no search results provided any information regarding a change in the number of referrals for investigation.
info
“Yet the IRBA found weak access controls, insufficient testing of system-generated reports, poor understanding of IT environments and limited use of specialists.”
SINGLE SOURCE
The Wikipedia entries confirm that IRBA is the Independent Regulatory Board for Auditors in South Africa. However, the specific findings regarding IT weaknesses (weak access controls, insufficient testing, etc.) are not corroborated by multiple independent sources or authoritative references within the provided evidence set.
menu_book
wikipedia NEUTRAL — IRBA or Irba may refer to: Independent Regulatory Board for Auditors, in the Republic of South Africa Institut de recherche biomédicale des armées, the Biomedical research institute of the Armies, pa…
https://en.wikipedia.org/wiki/IRBA
menu_book
wikipedia NEUTRAL — The Independent Regulatory Board for Auditors (IRBA), formerly known as Public Accountants and Auditors Board (PAAB), is a statutory body controlling public accountancy in the Republic of South Africa…
https://en.wikipedia.org/wiki/Independent_Regulatory_Board_f…
menu_book
wikipedia NEUTRAL — Irba is a census town in the Ormanjhi CD block in the Ranchi Sadar subdivision of the Ranchi district in the Indian state of Jharkhand.
https://en.wikipedia.org/wiki/Irba
schedule
“The report also notes the rise of AI and generative AI in audits.”
PENDING
schedule
“Root cause analysis: Audit firms need to identify why failures occurred. The IRBA says firms performing sufficient root cause analyses improved to 67%, up from 57%.”
PENDING
schedule
“Under newer quality management standards, firm leaders must sign off on the effectiveness of their systems.”
PENDING
schedule
“The IRBA flags shortages in competence around international financial reporting standards, valuations, IT audits and industry expertise.”
PENDING
schedule
“The report points to prohibited non-assurance services, incomplete declarations and weak safeguards [regarding independence].”
PENDING
schedule
“South Africa has lived through VBS, Steinhoff, Tongaat Hulett and a long season of governance scandals.”
PENDING
info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.