• Register
Return to: Home > News > Regulation > UK FRC could inspire South Africa’s accounting regulation

UK FRC could inspire South Africa’s accounting regulation

The regulation of South Africa's accounting profession could follow the British model of the Financial Reporting Council (FRC), The Accountant has learnt.

The chief executive of the Independent Regulatory Board for Auditors (IRBA), Bernard Agulhas, told The Accountant that he met with FRC representatives in early August to discuss how a future regulation of the accounting profession could be articulated in South Africa, should such regulation go ahead.

Agulhas said the meeting gave him the opportunity to understand the FRC model and share the model of the UK regulator with the South African Treasury, which will make recommendations to the Minister of Finance, who is to decide whether or not to regulate the accounting profession in the country.

It is expected that the government will decide in August whether it extends the regulation of auditors to the greater South African profession formed by approximately 50,000 professionals from various accounting bodies. Currently only 4,500 IRBA registered auditors are subject to regulatory oversight.

The World Bank is set to publish a Report on the Observance of Standards and Codes (ROSC), where it allegedly recommends regulating South Africa's accounting profession as a whole. It is understood the minister could still suggest amendments to the ROSC, and therefore the date when it will be published hasn't been confirmed as yet.

Should the UK model be adopted, the IRBA will be the equivalent body to the FRC, in which case it will need to extend its mandate to become the sole regulator of the accounting profession in South Africa. Only the Minister of Finance can approve such an extension.

"We are not lobbying for that. As one of the stakeholders mentioned in the ROSC, we should not influence the minister's decision. We have just given examples of how it works in the FRC and how it could work in South Africa, because the FRC is mentioned in the World Bank's report. But we are a regulator with 50 years of experience, especially in the audit profession, and we understand regulation, so we are best placed to [regulate the accounting profession]," Agulhas told The Accountant.

The FRC confirmed the meetings in London between Agulhas and some of its members and said it will follow the developments in South Africa.

The spokesperson for the South African Minister of Finance and the World Bank were unavailable to comment at the time of writing this report.


Related links

The Independent Regulatory Board for Auditors

The Financial Reporting Council


Top Content

    Choosing the right location can have cast-iron benefits

    As Game of Thrones, one of the biggest television shows of all time, comes to an end, Joe Pickard looks at how tax incentives offered to television and film production companies help the wider economy.

    read more

    Primary financial statements: a game changer in reporting?

    International Accounting Standards Board chair Hans Hoogervorst delivered a speech at the Seminario International sobre NIIF y NIF, organised by the Consejo Mexicano de Normas de Información Financiera in Mexico. The Accountant presents the highlights.

    read more

    FASB readies standards for the netflix generation

    The US Financial Accounting Standards Board (FASB) has updated its accounting standard for entertainment, with a specific eye on keeping up to date with how episodic content, such as television programmes, is consumed in the modern world. Jonathan Minter reports.

    read more

    Brexit: why it takes two to tango

    Former TA editor Vincent Huck, now editor of Insurance Asset Risk, looks at why Brexit might unleash geopolitical intrigue in Europe’s accounting standard-setting scene – and why IFRS 17 will be an incredible source of opportunity for firms in the coming years.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.