This followed the publication of a notice for public comment, in January 2024, proposing the withdrawal of the notice of maximum fines previously gazetted on June 15 2023 and the publication of new maximum fines.
All due processes followed
“The purpose of Government Notice No. 4933 of 6 June 2024, withdrawing Government Notice No. 3549 of 15 June 2023 and determining new maximum amounts, is to provide for the maximum amounts for both sections 51(2) and 51B(3)(b) of the Auditing Profession Act, 2005, 1 as amended, to apply per charge.
“The addition of the words per charge in respect of fines … was intended to align with the imposition of fines in respect of admission of guilt processes. This, having been the intention prior to publication of the 15 June notice,” National Treasury said on Thursday.
Details of the maximum fines
A 30-day comment period and a review of the written comments received by National Treasury were concluded. The Minister determined the following maximum amounts as maximum fines on registered auditors guilty of improper conduct:
- R5-million per charge, as the amount envisaged in section 51(2) of the Act. It may be imposed on an individual registered auditor who admits guilt. This as contemplated in section 49(4)(a) of the Act; and
- R15-million per charge, as the amount envisaged in section 51(2) of the Act. It may be imposed on a firm of auditors that admits guilt. This as contemplated in section 49(4)(a) of the Act; and
- R10-million per charge, as the amount envisaged in section 51B(3)(b) of the Act. It may be imposed on an individual registered auditor who is charged and found guilty. Or if the registered auditor admits guilt to the charge; and
- R25-million per charge, as the amount envisaged in section 51B(3)(b) of the Act. It may be imposed on a firm of auditors that is charged and found guilty. Or if the firm admits guilt to the charge.
“These maximum fines will be applicable to improper conduct committed from 6 June 2024. This being the date of publication of gazette notice 4933.
Framework for implementation of the fines
“Therefore, the notice does not apply retrospectively. And the maximum fines promulgated by the minister on 15 June 2023 will remain applicable. This for improper conduct committed between 15 June 2023 and before 6 June 2024.
“A framework, which will guide the implementation of the maximum fines in a proportional and scalable manner, will be issued. [It will be issued] by the Independent Regulatory Board for Auditors (IRBA) in due course. [This will be] for public comment, before adoption by the Board,” National Treasury said.
- SAnews.gov.za
