Latest News Archive

Please select Category, Year, and then Month to display items
Previous Archive
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 History lecturer becomes Visiting Fellow at Harvard
2015-05-25

Dr Chitja Twala
Photo: Eugene Seegers

Prestige Scholar and lecturer of African/South African History at the UFS, Dr Chitja Twala, was recently accepted as a Visiting Fellow at the Harvard Graduate School of Arts and Sciences (GSAS).

A Visiting Fellow status is available to individuals holding a doctoral degree to pursue independent research at Harvard. The Fellowship is for non-degree purposes but aims at the enhancement and further intellectual development of those involved. It focuses on enrichment and development programmes.

Twala was appointed in the Department of History at the UFS in the beginning of 2003. His research field is Liberation History, with specific reference to the liberation movements on the SADC region. He has published extensively on this field and presented papers in local and international conferences.

“I applied (to Harvard GSAS) in April 2014 for the Fellowship through the South Africa Harvard Fellowship Programme,” says Twala.

“After being successful in the interviews conducted by the GSAS panel in July 2014, I had to apply for admission in the Department of African and African American Studies at Harvard, and got accepted for the Fall Semester of 2015.”

At Harvard, Twala will be mentored by Prof Emmanuel Akyeampong (African History Expert).

“Firstly, my main assignment will be to grasp a much deeper theoretical knowledge/framework in historical studies and a broader repertoire of methodologies in the field of African History. Secondly, if time permits, I will be presenting seminars and attending some in a very challenging, stimulating, and intellectually demanding environment where my ideas can be tested and expanded. Thirdly, I will be exposed to new trends as far as African historiography is concerned. Lastly, I will informally engage and exchange some ideas with some experts in the field of African History.”

The programme was recommended to Twala by the Vice-Chancellor and Rector, Prof Jonathan Jansen and Prof Ian Phimister, Centre for Africa Studies Senior Professor at UFS.

“As per the priorities of the Prestige Scholarship Programme, the Fellowship will assist in inculcating in me the intellectual breadth and depth required to pose critical questions and generate ground-breaking knowledge for History as a discipline. It is important for the UFS to establish and sustain international networks with other leading universities and scholars around the world.

“I applied for this Fellowship in order to advance further and broaden the scope in the three areas of scholarship in higher education: discovery, teaching, and public engagement,” says Twala.

Twala will be leaving for Harvard by mid-August and will return by the end of December 2015.

We use cookies to make interactions with our websites and services easy and meaningful. To better understand how they are used, read more about the UFS cookie policy. By continuing to use this site you are giving us your consent to do this.

Accept