Home  »  Articles   »   IRBA Seeks Two Members for Investigating Committee

Articles
IRBA Seeks Two Members for Investigating Committee

May 31, 2021

Independent Regulatory Board for Auditors

The Independent Regulatory Board for Auditors (IRBA) seeks two members for its Investigating Committee.

The call for nominations was made in Government Gazette 44615.

IRBA seeks “formerly registered auditors, with at least ten years’ experience in signing audit opinions” to join the Committee and “contribute to restoring confidence in the audit profession”.

The notice points out that the aim of the IRBA is to “endeavor to protect the financial interests of the South African public and international investors in South Africa through the effective and appropriate regulation of audits conducted by registered auditors, in accordance with internationally recognised standards and processes”.

Members of the Committee serve a three-year term with one reappointment.

Nominations of candidates currently independent of the auditing profession are invited until 30 June 2021.

Meanwhile, national treasury has published a Framework for Achieving Spending Efficiency in a Fiscally Constrained Environment.

The document points out that South Africa continues to experience a mismatch between spending plans and revenue outcomes.

“Since the 2008 financial crisis, government spending has been consistently higher than revenue, leading to substantially higher government debt.”

It adds that the recent round of budget reductions is counter-productive in that some programmes become inefficient as a result of large reductions.

This resulted in the discussion on conducting spending reviews.

“Spending reviews help support fiscal rigor and more efficient allocation of expenditures.”

Key objectives of the spending reviews are to improve spending efficiency over the medium term, operational improvements leading to improved programme impact and short-term budget cuts to reduce the budget deficit.

The spending reviews will seek to reallocate spending to match current government priorities; achieve medium to long term improvements in spending efficiency; minimise the impact of spending reduction on service delivery while rapidly reducing the budget deficit and eliminate programmes that are no longer serving their intended purpose.

The document focuses on steps to be considered when thinking about zero-based budgeting (ZBB), implementation of spending reviews, roles and responsibilities, the budget process and initial project plan.

The introduction of ZBB is described as designed to enable “government to improve prioritisation of its spending, mainly towards key policy priorities and growth-enhancing programmes”.

In a separate matter, treasury recently briefed parliament on a guide to understanding major cryptocurrency issues and a regulatory framework.

Key regulatory changes proposed include implementation of the Anti-Money Laundering/ Counter-Terrorism Financing framework, crypto assets declaration and framework for monitoring cross-border financial flows.

Treasury indicated that a recommendation is that the Financial Surveillance Department of the South African Reserve Bank should assume the supervisory and regulatory responsibility for the monitoring of cross-border financial flows in respect of crypto assets and crypto asset service providers (CASP).

It added that the Financial Surveillance Department is currently involved with five use cases in the Regulatory Sandbox.

“The learnings will enable the Department to draft a regulatory framework on how to appoint CASPs and how crypto assets can be reported since currently, due to the nature of the assets, these transactions are currently not reportable on the FinSurv Reporting System.”