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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

Biggest Bloemfontein art project comes to life
2016-07-11

Description: It’s My City Giraffe Tags: It’s My City Giraffe

Three sculptures in different places
in Bloemfontein will form part of
It’s My City, a large-scale public art
project from 8 to 16 July 2016
alongside the Vrystaat Arts Festival.
Photo: Xany Jansen van Vuuren

One of the biggest art projects Bloemfontein has ever seen. That is how Angela de Jesus, curator of the Johannes Stegmann Art Gallery at the University of the Free State (UFS), describes It’s My City. And the large-scale public art project involves the community of Bloemfontein/Mangaung’s participation.

The artwork, conceived by British artist, Alex Rinsler, will be on display from 8 to 16 July 2016, alongside the Vrystaat Arts Festival. Three sculptures, a Baby Giraffe, Mother Tree and Toy Windmill, each about 7.5 metres, will appear in Hoffman Square, Mapikela Square in Batho location, and on the Red Square of the UFS Bloemfontein Campus respectively.

Many from around the city included


Local lead artists – Marius Jansen van Vuuren (Baby Giraffe), Tshiamo Art and Crafts Development (Mother Tree), and Minè Kleynhans (Toy Windmill) – expressed their relationship to the city. According to De Jesus, the project includes “six artists; more than 20 job opportunities were created; and there were skills transfer for many more. Over 50 volunteers, 100 professionals, and hopefully thousands will take part.” It’s My City is the signature 2016 project of the Programme for Innovation in Artform Development, a partnership between the UFS and the festival, supported by the Andrew W. Mellon Foundation and the municipality of Mangaung.

People can connect in positive way

“What most excites me is that this work will create imagery that loads of people can connect with in a positive way, and write a new story,” says Rinsler. According to the public artist and cultural producer, people are invited to visit the sculptures, write down their wishes for the city and those they love, and add them to complete the artworks.

Sculptures meet each other at ceremony

On 16 July 2016, the sculptures will be led by three processions, convening at the Macufe village (corner of Elizabeth and Markgraaff streets). At 17:30, a short ceremony, free to attend, will follow where they will be dismantled in spectacular fashion, with graceful fire and pyrotechnics, and so bringing together many people’s wishes as one.

Photo Gallery
For more information visit the It's My City website
Click here for a press release about the project



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