Enoch Godongwana, the South African Minister of Finance, has proposed increased fines for errant auditors and audit firms as part of efforts to improve financial reporting and accountability in the country.
- The proposed fines are included in the Auditing Profession Amendment Bill, which aims to strengthen the regulatory framework for auditors and audit firms.
- The bill proposes fines of up to R10m ($690,000) for individual auditors who breach professional standards, and up to R50m ($3.45m) for audit firms.
- The proposed fines represent a significant increase from the current maximum fines of R200,000 ($13,800) for individual auditors and R1m ($69,000) for audit firms.
- The bill also includes other measures such as mandatory rotation of audit firms and increased oversight of audit committees and boards of directors.
- The proposed changes have been welcomed by industry stakeholders, who have called for stronger regulatory oversight of the auditing profession in the wake of several high-profile corporate scandals in recent years.