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IOL News
11 hours ago
- Business
- IOL News
Auditor-General denies corruption claims in Free State audits
Auditor-General Tsakani Maluleke has denied corruption allegations brought by ActionSA. Image: Thobile Mathonsi/Independent Newspapers Auditor-General of South Africa (AGSA), Tsakani Maluleke, has strongly denied allegations of corruption involving some of its auditors in the Free State province, following claims brought forward by ActionSA. ActionSA stated it had received reports from whistleblowers alleging that senior AGSA officials in the province colluded with employees and consultants from Centlec—a municipal electricity distributor—to manipulate audit outcomes. The allegations suggest that audit reports were deliberately altered to conceal evidence of widespread financial mismanagement and fraud within the Mangaung Metropolitan Municipality. Maluleke responded firmly, defending the integrity of the institution and its auditing processes. She emphasised that AGSA audits were conducted under rigorous internal and external review mechanisms, designed to uphold the highest ethical and professional standards. 'They also undergo strict independent quality reviews by independent industry regulators such as the Independent Regulatory Board for Auditors (IRBA), 'In line with International Standards on Auditing (ISA) that we adhere to, our audit processes are such that no single person can conclude and audit alone, as there are several stringent internal and external review mechanisms that all our auditors must adhere to,' she said. There is currently no evidence to support claims of collusion between AGSA auditors in the Free State and municipal officials, Maluleke stated. 'We therefore call on those who have concrete evidence of impropriety to submit it through our complaints process to enable the AGSA to investigate it,' she said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Additionally, the auditor-general pointed out that the accusations first surfaced on social media in 2024. AGSA immediately initiated an internal assessment and informed the appropriate municipal authorities of its findings. AGSA reaffirmed its constitutional mission to audit public sector organisations without fear or favour, as well as its dedication to accountability and openness. 'We therefore call on those who have concrete evidence of impropriety to submit it through our complaints process to enable the AGSA to investigate it,' the statement read. IOL Politics
The Citizen
a day ago
- Business
- The Citizen
Auditor-General responds to ActionSA corruption allegations
South Africa's Auditor-General says all their reports are quality assured. The Auditor General of South Africa (AGSA) has denied allegations of corruption by some of their auditors in the Free State. This comes after ActionSA stated that it had received information from whistleblowers alleging that senior AGSA Free State figures collaborated with Centlec employees and consultants to falsify audit outcomes and sanitise reports that were intended to expose widespread financial mismanagement and fraud within the municipal entity. However, AG Tsakani Maluleke said that AGSA defended the agency. AGSA processes watertight She said audits are subject to stringent internal and external processes to ensure adherence to ethical and auditing standards. 'They also undergo strict independent quality reviews by independent industry regulators such as the Independent Regulatory Board for Auditors (IRBA), 'In line with International Standards on Auditing (ISA) that we adhere to, our audit processes are such that no single person can conclude and audit alone, as there are several stringent internal and external review mechanisms that all our auditors must adhere to,' she said. ALSO READ: Decisive intervention needed for municipal performance — BLSA No evidence against auditors Maluleke said there is no evidence to suggest that AGSA auditors in the Free State were involved in collusion with officials at Mangaung municipality. 'We therefore call on those who have concrete evidence of impropriety to submit it through our complaints process to enable the AGSA to investigate it.' She said the allegations had first surfaced on social media in 2024, prompting the AGSA to investigate. They were examined, and the reports were handed to the municipality. 'The AGSA rejects the allegations of collusion between our team and Centlec employees. 'The AGSA reviewed the entity's audits and concluded there was no basis for the allegations, as all findings were reported consistently. 'For the past five (5) financial years, Centlec has been receiving unqualified-with-findings audit outcomes from the AGSA,' she said. NOW READ: 'Same story year after year': MPs unhappy as Auditor-General reveals local government audit outcomes
Yahoo
30-04-2025
- Business
- Yahoo
ACCA urges FRC to ensure audit standards for UK SMEs
The Association of Chartered Certified Accountants (ACCA) has called on the Financial Reporting Council (FRC) to ensure that audit requirements for SMEs in the UK remain proportionate and aligned with international standards. The call comes as a response to the FRC's consultation on the SME market study, with ACCA emphasising the need for complexity-based regulations rather than size-based ones. During a roundtable discussion with FRC members, auditors, and users of audited accounts, participants shared their insights and addressed the challenges of auditing SMEs. ACCA Policy and Insights director and FRC's Audit Quality Review team former head Mike Suffield said: 'ACCA is strong proponent of globally consistent standards with regard to both corporate reporting and audit and assurance. We believe that it would be valuable and in the public interest for the FRC, as part of its focus on SMEs and audit, to set out clearly the basis for its decision not to adopt the IAASB's International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE). 'The FRC should set out its proposed alternative arrangements and allow stakeholders to provide their feedback once it has developed firm proposals.' ACCA also outlined several recommendations for the FRC to enhance SME audits. It suggested exploring ways to bridge the expectation gap in the UK audit market, so that the public, investors, and SMEs have a clearer understanding of the auditor's role. Additionally, ACCA recommends that the FRC and professional bodies should better communicate the advantages of audits, highlighting the importance of investing time and resources in them. The ACCA believes that the FRC should reassess the proportionality of the UK International Standards on Auditing (ISAs) and consider the scalability of these standards for SME audits. In addition, they propose that the FRC should conduct focused research on the application of the ethical standard to SME activities and their audit and assurance arrangements, which could lead to the development of additional guidance for the SME sector. Earlier in April 2025, ACCA partnered with the Astana International Financial Centre Green Finance Centre to host a seminar in Astana, Kazakhstan. The event aimed to enhance understanding of sustainability disclosures among regulators and business leaders in Central Asia. "ACCA urges FRC to ensure audit standards for UK SMEs " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
