South Africa maintained its number one ranking for the strength of the Auditing and Reporting Standards for the fifth year in a row according to the World Economic Forum′s (WEF) Global Competitiveness Index for 2014-2015, released on 3 September.
The ranking brings confidence to foreign investors that they can trust and rely on our auditing strength despite the economic meltdown that the country is experiencing.
We are proud to have achieved such a world renowned ranking for five years in a row. More importantly, this ranking further strengthens the IRBA′s role as an embedded protector of confidence in the sustainability of the system. Such confidence provides the required comfort to a wide range of stakeholders that the financial statements on which auditors express assurance are reliable, therefore enabling investors to make informed decisions about their investments.
Finland was ranked second and New Zealand third for the strength of their auditing and reporting standards in the 2014/15 report. South Africa also achieved number one rankings for Regulation of securities exchanges.
We believe that the decision to adopt the globally recognised International Standards on Auditing (ISA) as well as the International Financial Reporting Standards (IFRS) as early as 2005 had a direct impact on South Africa′s leading ranking in this section of the report.
We have a vital role to play to support other countries on the African continent in improving financial standards and reporting excellence so that Africa can become internationally respected in global markets. We also believe that developing countries must create stronger ties among themselves, and that there should be greater collaboration between the private and public sector and between industry and universities.
As the custodian of the auditing profession, the IRBA, together with the profession, must maintain the quality and integrity of the audit system, thereby contributing to the protection of the financial interests of the public.
About the IRBA:
The objective of the IRBA is to endeavour 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.