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01 August 2023 | Story Kekeletso Takang | Photo Supplied
Business Acumen Day 2023
The UFS School of Accountancy hosted a panel discussion in the Centenary Complex with the topic ‘The audit profession’s response to the financial reporting scandals of the past decade: Has enough been done?’. Panellists included Prof Bernard Agulhas, Rob Rose, and Patricia Stock, and the session was facilitated by Prof Philippe Burger and Conrad de Wee.


Auditing firms in South Africa should go back to basics and emphasise accountability in revamped corporate structures to avoid repeats of the big auditing scandals of the past decade such as the Steinhoff, VBS, Tongaat Hulett, and Bosasa scandals. This was some of the opinion expressed during a panel discussion hosted by the University of the Free State (UFS) School of Accountancy and featuring auditing and accountancy experts. 

The discussion tackled the topic ‘The audit profession’s response to the financial reporting scandals of the past decade: Has enough been done?’, and featured a panel of experts including Rob Rose, Financial Mail Editor and author of Steinheist; Prof Bernard Agulhas, former CEO of the Independent Regulatory Board for Auditors (IRBA) and current Adjunct Professor of Auditing at the UFS; and Patricia Stock, audit partner and CEO of MGI RAS and former South African Institute of Chartered Accountants (SAICA) board member. 

The event took place on 19 July 2023 in the Centenary Complex on the UFS Bloemfontein Campus. It was facilitated by Prof Philippe Burger, Dean of the Faculty of Economic and Management Sciences, and Conrad de Wee, Chairman of the SAICA Central Region Council and Senior Manager at auditing firm Mazars.

Prof Agulhas said a lot has been done to prevent a repeat of the root causes of the financial reporting scandals of the past decade. “Everyone has responded. The profession, regulators, universities, labour markets, the public, and professional bodies.” Still, he said a lot more needs to be done. “We have to go back to basics. Look at the framework, ISA standards, skills, and competencies. Professionals must be adaptable and responsive. Firms must set the tone at the top and create a conducive environment. Establish a culture of accountability. We have to go back to behavioural competencies. Universities can also investigate the inclusion of forensic auditing as part of the curriculum.” 

The panel felt that accountability is central to going back to basics. Rose said he believes businesses need to change their organisational cultures. “The likes of Glencore and Tiger Brands are making an immense effort to revamp. There are numerous ways companies can go about it, including setting the tone at the top and establishing accountability structures in-house. Also, not only having fraud-detection systems, but also implementing them.”

He also questioned why no one is holding bankers accountable for failing to uncover recent corporate scandals. “In the case of Tongaat Hulett, how did they miss all the issues through their risk assessment? At the end of the day, they should also be held accountable.”

Where it all went south

Prof Burger said the World Economic Forum had for seven years, until 2017, rated South Africa number one for the strength of auditing and reporting standards. “And then we started to see things go wrong, with the likes of state capture, Steinhoff, VBS, and others. In light of this, has enough been done to equip external auditors to deal with fraud in organisations, and to ensure that they act in the interest of the public?” 

Prof Agulhas, speaking from his experience as a regulator, said, “Initially, South Africa was one of the few developing countries to adopt international standards. For seven years, we have received a good rating from the World Economic Forum. But if we can be honest, while our professional qualifications are among the best in the world, we were not that good at implementing these standards due to behavioural issues on the part of certain accountancy/ auditing professionals.” 

Stock, sharing her perspective as an audit practitioner, commented: “We are noticing a growing trend among firms to improve on reporting, and audit committees are holding professionals accountable. While this is said, we should also acknowledge that there is a need to look at the whole ecosystem relating to financial reporting.”

Auditing in the era of artificial intelligence

When questioned about the impact of technological advances on auditors, Stock said she believes artificial intelligence and technology integration offer the auditing profession a wonderful opportunity. She stressed that technology will not replace human capital. “We need critical thinkers and value creators. Technology won’t replace that, especially where Environmental, Social, and Corporate Governance (ESG) is concerned.” 

Interaction between universities and industry

Prof Burger posed the question, “When looking at the interaction between universities, industry, and trainees, would you say this model is still fit for purpose, and are these individuals ready?”

Stock responded, “The profession needs the diversity of minds. We need their enquiring minds. We need to hear the voices of our trainees. In fact, one of the scandals of the past decade was picked up by a trainee, but was unfortunately ignored by the more senior staff.” 

Where we are now

The panel discussion was attended by stakeholders from the School of Accountancy, which included managers and directors of various auditing and accounting firms, representatives of professional bodies, members of management from large businesses, and university staff members. Interactive polls and the opportunity to submit questions allowed guests to participate in the discussion, which ended with a consensus that while much effort has been made to restore the credibility of the auditing profession, there is still further work to be done. 

The panel discussion was made possible with the financial support of Standard Bank.

News Archive

UFS School of Nursing opens new frontiers at 40
2009-11-16

The opening of the virtual facility of the School of Nursing at the University of the Free State (UFS) and a gala dinner to celebrate the School’s 40th year of existence took place on the Main Campus in Bloemfontein this week. At the opening were, among others, from the left: Prof. Jonathan Jansen, Rector and Vice-Chancellor of the UFS; Dr Oluseyi Oyedele and Ms Viona Munjeri, both from The Atlantic Philanthropies; and Prof. Anita van der Merwe, Head of the School of Nursing at the UFS.
Photo: Leatitia Pienaar

All eyes in the nursing profession in South Africa were turned to the University of the Free State (UFS) when the School of Nursing opened a state-of-the-art virtual health training and learning facility and celebrated its 40th year of existence with a gala dinner on the Main Campus in Bloemfontein this week.

The lustrous events were attended by dignitaries from all spheres of the health-care fraternity in South Africa.

The new virtual facility, The Space, is made possible by a grant of R16 million from The Atlantic Philanthropies and R1 million from the UFS. The Atlantic Philanthropies organisation is an international philanthropic organisation that is going to inject R70 million into nursing in South African over the next four years. The initiative will enhance nursing education and step up the quality of health-care delivery in South Africa. Four major grants were made to universities in South Africa, of which the UFS is one.

With the facility at the UFS School of Nursing, nursing education is propelled into the future. Prof. Anita van der Merwe, Head of the School of Nursing, says, “The virtual learning facility is a very new way of thinking and teaching. At the moment, theory and practice are separated, as theory is often taught in the mornings, followed by practical settings later in the day. Learner nurses then also go to clinical facilities for their practicals where the quality of care is declining and human resources are a problem.

“We believe that with new technologies such as e-learning and high-tech computer-mediated equipment we can use the ‘virtual world’ to bridge the theory-practice gap in the same location.”

Prof. Van der Merwe says the project is essentially about transformation: taking a stand against stagnation in nursing education and practice and daring to be different.

In the new virtual facility nurses will have the best of three worlds – the expertise of the facilitator/educator, simulation technology, and a vast selection of on-line and off-line software, exposing them to blogs, broadcasting and enhancing computer literacy. This will attract both the new “millennial” generation, which tends to be technologically competent, as well as the older learner because of the unthreatening learning environment.

The core space will accommodate 40 to 60 students and is designed to encourage informal, collaborative learning and practice simultaneously. It will have a demarcated area for “patients” (such as advanced adult and baby patient simulators) and a “clinic space” allowing for role play.

At the gala dinner, Prof. Jonathan Jansen, Rector and Vice-Chancellor of the UFS commended nurses in South Africa for their caring role, but also expressed his concern that South African has lost its deep sense of care. South Africa is at a critical point and the country can be changed if a deep sense of care can be embedded again.

About forty nursing educators from all over South Africa attended an exploratory workshop in the facility today and the last meeting of the Forum of University Deans in South Africa (FUNDISA) also coincided with the festivities at the School of Nursing.

Media Release
Issued by: Lacea Loader
Assistant Director: Media Liaison
Tel: 051 401 2584
Cell: 083 645 2454
E-mail: loaderl.stg@ufs.ac.za
13 November 2009
 

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