In June 2017, the Independent Regulatory Board for Auditors (IRBA) issued a rule prescribing that auditors of public interest entities (PIEs) in South Africa (SA) must comply with mandatory audit firm rotation (MAFR) with effect from 1 April 2023.
This document sets out the key elements of the new rule as it relates to audit firm rotation, and explores some of the questions that arise based on our understanding of the requirements at the time of writing.
Each organisation is unique and some audit committees may decide to take action in advance of the deadlines imposed by the rule. In making this decision, audit committees may wish to consider how MAFR interacts with other regulations such as lead audit partner rotation and the prohibition on auditors to provide certain non-audit services. Some PIEs may also have very limited experience when it comes to running an audit tender or evaluating auditor transition plans.