01 Apr 2026
Today, the Independent Regulatory Board for Auditors (IRBA) commemorates 20 years since the implementation of the Auditing Profession Act, 2005 (APA), which came into effect on 1 April 2006. This landmark legislation marked the transition from a self-regulated profession under the Public Accountants’ and Auditors’ Board (PAAB) to an independent statutory regulator, mandated to protect the public interest and uphold the integrity of the auditing profession in South Africa.
Over the past two decades, the IRBA has evolved into a globally recognised audit regulator, playing a pivotal role in strengthening audit quality, enhancing auditor independence and restoring confidence in the profession. The regulator’s journey has been marked by the adoption of global standards, participation in global standard setting, defining auditor competencies, audit reforms, legislative advancements and a steadfast commitment to ensuring that the auditing profession remains a cornerstone of corporate governance and economic stability.
Reflecting on the milestone, IRBA Chief Executive Officer Imre Nagy said: “Twenty years ago, South Africa made a decisive move to establish an independent audit regulator. That decision was rooted in the recognition that trust in financial reporting is fundamental to investor confidence, market stability and economic growth. Today, we honour the visionaries who laid the foundation for the IRBA and the many professionals who have contributed to building a regulator that is both respected and resilient.”
The establishment of an independent audit regulator was part of a broader global shift towards stronger, statutory oversight of auditors following major corporate scandals. In the early 2000s, high-profile failures, including Enron and WorldCom (2001-2002), exposed deep flaws in the self-regulated audit model and shook public confidence in financial reporting. In response, the United States passed the Sarbanes-Oxley Act (2002), which ended the accounting profession’s long tradition of self-regulation, and created the Public Company Accounting Oversight Board in 2003 as an independent auditor regulator. This decisive reform – coupled with the collapse of Enron’s auditor Arthur Andersen – set a global precedent and need for independent oversight to restore trust in audits.
Around the same time, Europe was also overhauling audit regulation. In April 2006, the European Union (EU) adopted the 8th Company Law Directive (2006/43/EC) on statutory audit. This directive required every member state to establish a public oversight system for auditors, mandating that quality assurance reviews be “independent from the reviewed auditors and subject to public oversight.” It also laid down stricter auditor independence rules and oversight principles to reinforce the reliability of financial statements across the EU. These reforms were driven in part by European corporate scandals and reflected a consensus that robust, independent audit supervision was critical for investor confidence.
Importantly, in September 2006 the International Forum of Independent Audit Regulators (IFIAR) was formed, with the IRBA as one of the founding members, along with 18 other countries. The IFIAR’s emergence, with observers such as the World Bank, the International Organization of Securities Commissions and the European Commission present at its founding meeting, demonstrated a worldwide commitment to enhanced audit oversight and knowledge-sharing among regulators.
In that global context, South Africa’s decision to promulgate the APA and launch the IRBA was a decisive and timely reform aligned with international trends, placing the country at the forefront of audit reform in the public interest.
From its early years of establishing new governance structures and aligning with international standards to its more recent focus on sustainability assurance, the IRBA has consistently adapted to meet the evolving needs of the public and the profession. Among its key achievements over the past 20 years are:
While the IRBA is often viewed through the lens of enforcement, its role is equally foundational in safeguarding the professional status of the registered auditor as a key gatekeeper in the financial reporting ecosystem. Registered auditors occupy a unique position in society’s social compact – they are entrusted to independently interrogate, challenge and attest to the credibility of financial information on which investors, lenders, employees, regulators and the public rely.
By setting clear standards, strengthening independence, monitoring audit quality and taking decisive action where conduct falls short, the IRBA provides the regulatory framework that enables auditors to fulfil this public-interest role with confidence and the requisite legal authority. In doing so, the IRBA directly sustains the profession’s relevance, credibility and sustainability, ensuring that the registered auditor remains a trusted pillar of corporate governance.
“The work of registered auditors underpins investor confidence as guardians of the public interest. Their role in verifying the integrity of financial information is essential to the effective functioning of markets, the credibility of financial reporting, the protection of stakeholders and the credibility of institutions. In a society striving for inclusive growth and ethical leadership, the auditing profession is indispensable to the efficient allocation of capital in the economy,” said Nagy.
“As we look ahead, our focus remains on strengthening audit quality, enhancing our regulatory agility to respond to new frontiers in audit and ensuring that the profession is fit for the future. We are entering a new era – one where assurance will extend beyond financial statements to include sustainability, and the use of advanced technology and artificial intelligence. The IRBA is ready to lead that evolution and ensure registered auditors are in a strong position to implement an expanded assurance role.”
As South Africa continues to navigate complex economic and governance challenges, the role of the audit regulator and the profession it regulates remains more vital than ever.
Ends
About the IRBA:
The Independent Regulatory Board for Auditors is the statutory body mandated to regulate the auditing profession in South Africa. Established by the Auditing Profession Act 26 of 2005, the IRBA’s mission is to protect the public interest by ensuring the highest standards of audit quality and ethical conduct among registered auditors.
Today, the Independent Regulatory Board for Auditors (IRBA) commemorates 20 years since the implementation of the Auditing Profession Act, 2005 (APA), which came into effect on 1 April 2006. This landmark legislation marked the transition from a self-regulated profession under the Public Accountants’ and Auditors’ Board (PAAB) to an independent statutory regulator, mandated to protect the public interest and uphold the integrity of the auditing profession in South Africa.
Over the past two decades, the IRBA has evolved into a globally recognised audit regulator, playing a pivotal role in strengthening audit quality, enhancing auditor independence and restoring confidence in the profession. The regulator’s journey has been marked by the adoption of global standards, participation in global standard setting, defining auditor competencies, audit reforms, legislative advancements and a steadfast commitment to ensuring that the auditing profession remains a cornerstone of corporate governance and economic stability.
Reflecting on the milestone, IRBA Chief Executive Officer Imre Nagy said: “Twenty years ago, South Africa made a decisive move to establish an independent audit regulator. That decision was rooted in the recognition that trust in financial reporting is fundamental to investor confidence, market stability and economic growth. Today, we honour the visionaries who laid the foundation for the IRBA and the many professionals who have contributed to building a regulator that is both respected and resilient.”
The establishment of an independent audit regulator was part of a broader global shift towards stronger, statutory oversight of auditors following major corporate scandals. In the early 2000s, high-profile failures, including Enron and WorldCom (2001-2002), exposed deep flaws in the self-regulated audit model and shook public confidence in financial reporting. In response, the United States passed the Sarbanes-Oxley Act (2002), which ended the accounting profession’s long tradition of self-regulation, and created the Public Company Accounting Oversight Board in 2003 as an independent auditor regulator. This decisive reform – coupled with the collapse of Enron’s auditor Arthur Andersen – set a global precedent and need for independent oversight to restore trust in audits.
Around the same time, Europe was also overhauling audit regulation. In April 2006, the European Union (EU) adopted the 8th Company Law Directive (2006/43/EC) on statutory audit. This directive required every member state to establish a public oversight system for auditors, mandating that quality assurance reviews be “independent from the reviewed auditors and subject to public oversight.” It also laid down stricter auditor independence rules and oversight principles to reinforce the reliability of financial statements across the EU. These reforms were driven in part by European corporate scandals and reflected a consensus that robust, independent audit supervision was critical for investor confidence.
Importantly, in September 2006 the International Forum of Independent Audit Regulators (IFIAR) was formed, with the IRBA as one of the founding members, along with 18 other countries. The IFIAR’s emergence, with observers such as the World Bank, the International Organization of Securities Commissions and the European Commission present at its founding meeting, demonstrated a worldwide commitment to enhanced audit oversight and knowledge-sharing among regulators.
In that global context, South Africa’s decision to promulgate the APA and launch the IRBA was a decisive and timely reform aligned with international trends, placing the country at the forefront of audit reform in the public interest.
From its early years of establishing new governance structures and aligning with international standards to its more recent focus on sustainability assurance, the IRBA has consistently adapted to meet the evolving needs of the public and the profession. Among its key achievements over the past 20 years are:
- In 2015, the introduction of the Audit Development Programme, which has become a critical pipeline for developing competent and ethical registered auditors.
- In 2017, the adoption of the Audit Firm Rotation rule, aimed at strengthening auditor independence and addressing long audit firm tenures.
- In 2021, the enactment of the Auditing Profession Amendment Act, which enhanced the IRBA’s powers to investigate and discipline auditors, introduced the Enforcement Committee and enabled the imposition of stronger sanctions.
- In 2023, the publication of the first Annual Enforcement Report and Reportable Irregularities Report, marking a new era of transparency and accountability.
- In 2024, the accreditation of the Association of Chartered Certified Accountants South Africa, expanding access to the profession and supporting transformation objectives.
- In 2026, the adoption of the International Standard on Sustainability Assurance 5000, positioning the IRBA at the forefront of regulating emerging assurance services.
While the IRBA is often viewed through the lens of enforcement, its role is equally foundational in safeguarding the professional status of the registered auditor as a key gatekeeper in the financial reporting ecosystem. Registered auditors occupy a unique position in society’s social compact – they are entrusted to independently interrogate, challenge and attest to the credibility of financial information on which investors, lenders, employees, regulators and the public rely.
By setting clear standards, strengthening independence, monitoring audit quality and taking decisive action where conduct falls short, the IRBA provides the regulatory framework that enables auditors to fulfil this public-interest role with confidence and the requisite legal authority. In doing so, the IRBA directly sustains the profession’s relevance, credibility and sustainability, ensuring that the registered auditor remains a trusted pillar of corporate governance.
“The work of registered auditors underpins investor confidence as guardians of the public interest. Their role in verifying the integrity of financial information is essential to the effective functioning of markets, the credibility of financial reporting, the protection of stakeholders and the credibility of institutions. In a society striving for inclusive growth and ethical leadership, the auditing profession is indispensable to the efficient allocation of capital in the economy,” said Nagy.
“As we look ahead, our focus remains on strengthening audit quality, enhancing our regulatory agility to respond to new frontiers in audit and ensuring that the profession is fit for the future. We are entering a new era – one where assurance will extend beyond financial statements to include sustainability, and the use of advanced technology and artificial intelligence. The IRBA is ready to lead that evolution and ensure registered auditors are in a strong position to implement an expanded assurance role.”
As South Africa continues to navigate complex economic and governance challenges, the role of the audit regulator and the profession it regulates remains more vital than ever.
Ends
About the IRBA:
The Independent Regulatory Board for Auditors is the statutory body mandated to regulate the auditing profession in South Africa. Established by the Auditing Profession Act 26 of 2005, the IRBA’s mission is to protect the public interest by ensuring the highest standards of audit quality and ethical conduct among registered auditors.
| Issued by: | Lorraine van Schalkwyk APR Manager: Brand, Marketing and Media Relations The Independent Regulatory Board for Auditors (IRBA) Contact: +27 87 759 2693 WhatsApp: 083 626 3762 Mobile: 076 544 8705 |
| On behalf of: | Imre Nagy Chief Executive Officer |