Auditors protest requirments for IFRS specialists

Auditors in South Africa are up in arms over new requirements by the stock exchange for firms to have registered IFRS specialists if they are to audit listed companies.

The firms – which include the Big Four names – say this ought to be a requirement imposed on listed companies, who report results in IFRS.

'We really fail to see why it must be auditors who must be IFRS specialists and not listed companies themselves,' Ernst & Young audit partner Garth Coppin said.

According to rules of the Johannesburg Stock Exchange, an auditor must be able to prove 800 hours of working knowledge of IFRS to be able to register.

The alternative route would be for members of an audit team to be able to collectively show working knowledge equivalent to that of a single individual.

However Coppin said that listed companies should employ a specialist since they were responsible for complying with IFRS, Business Day reported.

Ernst & Young has also made representations to the JSE over its concerns about the requirements.

Deloitte's head of audit, Geoff Pinnock, said the requirements would also be onerous for the large firms and even more difficult for smaller firms to demonstrate that they have a working knowledge of IFRS.

Grant Thornton's head of audit, Clifford Amoils, said the requirements could lead to smaller firms choosing not to audit listed companies.