Checking that your auditor is IRBA-registered
How a South African business confirms its auditor or independent reviewer is properly registered, using IRBA's Find an RA search and the review rules.
By Achekam · · 5 min read · For Running a business businesses in South Africa
When a company's financial statements carry an audit report or an independent review report, the report is only as good as the person who signed it. A bank, a landlord, a funder or a government buyer reading those statements assumes the signature belongs to someone entitled to give it.
Most of the time that assumption is right. But the directors are the ones who appoint the auditor or reviewer, and if the person turns out not to be registered, the problem lands on the company: statements that may have to be redone, a filing that may not stand, and a relationship with a lender to repair. Checking takes a few minutes, and South Africa's audit regulator makes it easy. This article shows how, and which kind of professional you need in the first place.
Use IRBA's Find an RA search
The Independent Regulatory Board for Auditors (IRBA) keeps the register of registered auditors. Its Find an RA tool lets anyone search that register by surname, IRBA number, area, firm name or practice number. As IRBA describes it, the search is open to anyone, not only to accountants.
The IRBA's Find an RA search is the place to confirm that a named auditor appears on the register before you appoint them, and it is worth repeating the check each year before the engagement letter is signed.
A sensible routine:
- Ask the firm for the full name and IRBA number of the person who will sign your report.
- Search for that person on Find an RA, by IRBA number if you have it, otherwise by surname and firm.
- Check that the name, firm and practice details agree with what you were told.
- Keep a dated note or screenshot of the result with the appointment letter.
Search for the individual, not only the firm. A report is signed by a person, and it is that person's registration that matters.
Do you need an auditor, or a reviewer?
Before checking anyone, be clear which service the company needs, because different people may provide them.
CIPC says a private or personal liability company must be audited if it compiles its financial statements internally and has a public interest score of 100 or more, or if the statements are compiled by an independent party and its public interest score is 350 or more. An audit must be done by a registered auditor, which is exactly what Find an RA confirms.
Where an audit is not required, a company may need an independent review instead. The Companies Regulations, as published in April 2011, say an independent review is done in accordance with ISRE 2400. Where the public interest score is at least 100, the reviewer must be a registered auditor or a member of a professional body that holds accreditation for this purpose. Where the score is below 100, a person qualified to be the accounting officer of a close corporation may also do the review.
So for a reviewer, Find an RA answers the question only if the reviewer is a registered auditor. If your reviewer relies on membership of a professional body, or on qualifying as an accounting officer, confirm that with the body concerned and keep the evidence.
| Your situation | Who may sign | How to check |
|---|---|---|
| Audit required | A registered auditor | IRBA's Find an RA |
| Independent review, score 100 or more | A registered auditor, or a member of a professional body holding accreditation | Find an RA, or the professional body |
| Independent review, score below 100 | As above, or a person qualified as a close corporation accounting officer | Find an RA, the professional body, or proof of the qualification |
Companies that hold significant money for other people can need an audit regardless of their score; see holding money for others: when you need an audit.
What IRBA does once someone is registered
Registration is not a one-off badge. IRBA says its Inspections Department performs inspections under section 47 of the Auditing Profession Act, which requires IRBA to inspect or review the practice of a registered auditor who audits a public company at least every three years.
For a private company, that tells you something about the system around your auditor: registered auditors work under a regulator that inspects. It is one more reason to make sure the person you appoint is on the register.
Appointing the firm in Achekam
If your books are on Achekam, a business appoints its accounting firm by the firm's Achekam address or firm code. You choose the role, such as accountant, auditor, tax practitioner, payroll provider or adviser, and an access level, and the firm accepts or declines.
The access level decides what the firm's people can do in your books. Bookkeeping access covers the accounting but not the business's users, settings or payment gateways. Review access is read-only. For an auditor or reviewer whose job is to examine the records rather than change them, review access is usually the natural choice, and it keeps a clear line between the people who keep the books and the people who check them.
Achekam does not check IRBA registration
Be clear about one limit. Achekam does not check whether anyone is registered with IRBA. On the screen where a South African firm reviews and signs statements there is an "IRBA" badge, and it is a label only: Achekam checks that the signer holds the partner role in the firm, not that they are a registered auditor. The regulator field is free text that the firm types in.
That means the registration check described above is yours to do, and it should not be skipped because the software shows a regulator's name. Firms that want to understand the signing controls in more depth will find them in IRBA registration and signing checks.
Make it part of the appointment
Each year, before the engagement letter is signed, look the signing person up on Find an RA, or confirm the reviewer's qualification with the right body, and file the result with the appointment. It is a small step that protects every reader of your financial statements, starting with the directors.
General guidance only, not advice on your own circumstances. Tax and payroll rules change: check the current position with the authority or your adviser.
