Tag: Dr Claudelle Von Eck

South Africa’s current woes are in large part a result of a large-scale breakdown in ethics (both personal and professional) and good governance practices. One only needs to look at the goings-on at Steinhoff, KPMG, Eskom, SARS and VBS Bank to see the impact that unethical behaviour, large scale looting and unchecked business practices have had on the South African economy and on South Africans, whose confidence in the leadership of this country and those in business is at an all-time low.

Following a bruising year of corporate scandals, the AEPF Ethical Practices Survey 2018 reveals 1 in 4 believe financial success is more important than doing the right thing - while 25% in public sector say they fear for their lives when reporting wrongdoing.

Is the accounting profession experiencing a crisis of credibility? Current events locally and internationally are demanding higher levels of accountability in the accounting and auditing professions. Unethical accounting and auditing practices in South Africa have reverberated globally, with the reputations of large accounting and auditing firms severely damaged by their links to public service corruption and financial misrepresentation by large multinational companies like Steinhoff.

A lack of consequences to civil servants involved in auditing the public finances has necessitated wide-ranging legislative changes to the Public Audit Act (PAA). This is according to the Auditor-General, Kimi Makwetu. In addition, Makwetu has said that the Public Audit Amendment Bill, which is soon to be debated in parliament, proposes 11 changes to the PAA.

In November 2017, the South African Institute of Chartered Accountants (SAICA) convened what is now known as the “Ntsebeza Inquiry” [also referred to as the Inquiry]. The aim of the Inquiry is that it should investigate, independently, allegations that some of its members who were/are employed by KPMG, had allegedly engaged in conduct in contravention of the SAICA Code of Professional Conduct. 

The Independent Inquiry has been convened by the South African Institute for Chartered Accountants (SAICA) after receipt of allegations that some of its members...