Deloitte Africa’s strategy to put right its tarnished reputation and become a trusted and respected audit firm has paid off, with the regulator giving the company’s audits a clean bill of health.
The professional services firm has seen a pleasing improvement in the selected and inspected audit engagement files, culminating in a 100% score in 2022.
This follows the conclusion of a review performed by the Independent Regulatory Board of Auditors (IRBA) earlier this year.
Releasing its 2022 Transparency Report yesterday, Deloitte said the quality of its audits increased from 50% in 2019, to 78% in 2021, to now reach its goal of achieving 100% audit quality outcome.
Deloitte South Africa also received no reportable findings at firm level in 2022 with respect to the firm’s systems of quality control.
Further, Deloitte Africa was also recently subjected to engagement files and systems of quality control reviews in both its Namibia and Malawi practice offices, receiving satisfactory outcomes.
Deloitte Africa chief executive Ruwayda Redfearn said the IRBA results were a demonstration that their commitment and efforts were not in vain.
Redfearn, who paid tribute to former CEO Lwazi Bam and his previous executive for laying the foundation for these results over the past two years, said this outcome also strengthened their resolve to keep improving and maintaining that position.
“We believe that the audit function is critical for the smooth functioning of the financial reporting ecosystem as it allows markets players to make informed decisions. This improvement and that of the industry ensures that the South African market is better served,”
“During this period, the Future Fit project cast a spotlight on the areas within our business where intensified and prioritised actions would allow us to significantly enhance our overall system of quality management, as well as drive a superior quality experience.”
In 2019, Deloitte Africa went through a process of deep introspection, which resulted in it embarking on its Future Fit project to improve audit quality.
The objective was to become future fit to thrive in a volatile world of mandatory audit firm rotation, coupled with heightened stakeholder, market and public expectations.
Deloitte Africa undertook a complete assessment of the strategic direction and the operational structures and processes within its audit and assurance practice.
Deloitte’s reputation has been in the spotlight on widely reported matters involving African Bank, Tongaat Hulett, Steinhoff and Eskom.
Over the past three years, the firm used these events as an opportunity for deep reflection to not only set itself on the self-correcting path, but to contribute to the profession reform initiatives.
Redfearn said their quality journey had been the focal point for our firm for several years.
“As such, we have made significant investments and took tough decisions aimed at ensuring that we regain our status as a firm that delivers reliable and uncompromising quality in everything we do,” Redfearn said.
Newly appointed audit & assurance leader at Deloitte Africa, Eric Tshabalala, said that looking to 2025 and beyond, they were hoping the continued investment will deliver consistent levels of quality for their clients across the board.
“With heightened expectations from our clients, we are conscious that this is by no means the end of the journey and will continue to understand our clients to enable us to provide assurance, insights and ultimately peace of mind for their partnership with Deloitte,” he said.
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