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The Curious Case of the Missing Going-concern Assessment

2026-07-01T18:50:36+02:00

What’s News? I will limit this discussion to the audit of companies, but the principles make governance sense for any entity. In general, management’s assessment of the health of their business is only an afterthought to satisfy the auditors, without them realising the disastrous consequences on the business and themselves as individuals, if they don’t do so. Somehow, the understanding of the effect of going-concern assessments by auditors is not much different, as the required procedures, in terms of the auditing standards, are followed in a boilerplate fashion, without considering or understanding the effect on stakeholders and management. [...]

The Curious Case of the Missing Going-concern Assessment2026-07-01T18:50:36+02:00

The Brain Drain of Audit Quality

2026-06-01T15:13:52+02:00

What’s News? The Brain Drain of Audit Quality For decades, audit quality, in general, has failed to prevent audit failures. Upgraded audit standards, and stricter independence requirements have been implemented in an attempt to address the challenge. In my opinion, there are a number of environmental factors being overlooked in the formal structures that set audit standards and educational standards, causing a drain on knowledge and experience in the profession, (the so-called ‘brain drain’). I am listing a few: Computer skills In my opinion, the brain drain started when personal computers were introduced into audit. Many manual calculations, [...]

The Brain Drain of Audit Quality2026-06-01T15:13:52+02:00

Root Cause Analysis – The Root of Many Evils

2026-03-31T15:55:42+02:00

What’s News? Your Content Goes Here Root Cause Analysis – The Root of Many Evils With the advent of ISQM1, ISQM2, and the revised ISA 220, the term, ‘root cause analysis’, has surfaced as a requirement when encountering failures in audit engagements, and within the audit quality management system. During inspections, the IRBA also assists firms with the determination of root causes. It is one of the most important aspects of the quality management system and, therefore, deserves detailed attention. Why do I say that? It is one of the few opportunities for engagement partners, quality leaders and [...]

Root Cause Analysis – The Root of Many Evils2026-03-31T15:55:42+02:00

Three Trends Shaping the South African Audit Profession

2026-01-29T16:24:47+02:00

What’s News? Your Content Goes Here As 2026 gets underway, the audit profession in South Africa continues to experience high expectations, scrutiny, and an environment that is evolving more rapidly than many firms would like. Several clear trends are shaping how audit firms need to adapt this year. Audit quality is no longer a project Audit quality remains firmly in the spotlight, particularly through IRBA inspections, investigation of complaints, and the successful issue of fines, with or without disciplinary hearings. Firms that do not embed audit quality in their leadership culture, and do not apply the appropriate resources [...]

Three Trends Shaping the South African Audit Profession2026-01-29T16:24:47+02:00

The Rabbit Hole of Substantive Testing

2025-11-04T13:02:54+02:00

What’s News? Your Content Goes Here For decades now, audit firms, especially small firms, or SMPs, as they are known nowadays, have insisted on the substantive approach, without any regard for controls. This was due to fears of blowing the budget, not knowing how to audit systems, or deciding that they would have to go substantive anyway, when controls prove to be ineffective. The result was that the audit client received less bang for their buck, in that feedback on system weaknesses was shoddy, and risks were not properly identified, as the requirements of ISA315 were interpreted as that [...]

The Rabbit Hole of Substantive Testing2025-11-04T13:02:54+02:00

Taking responsibility for quality on the engagement – Partner or EQR

2025-09-29T18:47:10+02:00

What’s News? Your Content Goes Here With the implementation of quality management systems to comply with ISQM, audit firms are compelled to be aware of threats to the ability of engagement teams to issue appropriate audit reports, and threats to the system of quality management to ensure that the firm as a whole does not issue inappropriate audit reports. When an engagement partner is nervous about a new industry, a very large client, or a complex audit, as examples, this would be seen as a threat. Typically, these threats require immediate attention, and engagement monitoring reviews will address [...]

Taking responsibility for quality on the engagement – Partner or EQR2025-09-29T18:47:10+02:00

Auditor and AI–How the Documentation Fixation will Blow Up in Our Faces

2025-08-26T11:05:22+02:00

What’s News? Your Content Goes Here Auditors are all excited about the advancements in AI, and are scrambling to implement this tool in the enhancement of their procedures on the one hand, while trying to figure out policies to curtail its abuse, and guide its proper use, on the other. In the meantime, they don’t have a clue about where its boundaries are, and what it is capable of. The intention is not to give you the solution to any of these mentioned dilemmas, but to pull you back to two basic audit and audit regulation principles. The [...]

Auditor and AI–How the Documentation Fixation will Blow Up in Our Faces2025-08-26T11:05:22+02:00

New business challenges to small and medium practices (SMPs)

2025-05-29T15:08:15+02:00

What’s News? Your Content Goes Here With increasing regulatory demands, many small and medium-sized audit practices (SMPs) have shifted their focus almost entirely to compliance — often at the expense of essential business practices. While ISQM 1 and ISQM 2 introduce some business-aligned principles, they are frequently applied in a narrow, compliance-driven manner, rather than being integrated into the firm's broader operations. To truly benefit, firms should approach these requirements by asking, ‘What is the purpose?’, ‘What processes already address this?’ and ‘How can we adapt them to support both business efficiency and audit quality?’ Beyond the standards, [...]

New business challenges to small and medium practices (SMPs)2025-05-29T15:08:15+02:00

AI and the Audit Profession – Highlighting Current Inadequacies

2025-05-29T15:08:39+02:00

What’s News? Your Content Goes Here I have been in the audit profession for 43 years now. I was blessed to be with a ‘big eight’ firm when I started, at a time when there were no formal auditing standards to speak of, but I was trained in risk-based auditing. I became involved in a small audit division where one would be involved in the accounting and tax of a client, as well, and sometimes, producing monthly management reports, with discussions of business performance and issues with clients. The intricate knowledge of the business and the affairs of [...]

AI and the Audit Profession – Highlighting Current Inadequacies2025-05-29T15:08:39+02:00

Scepticism and Reasons for Audit Failures

2025-03-28T14:47:05+02:00

What’s News? Your Content Goes Here The largest risk for an auditor is an audit failure, i.e. where the audit report issued was inappropriate. This can only occur when there is a lack of evidence to support the audit opinion issued. In most cases, a material balance or disclosure, or the completeness of balances and disclosures are not appropriately addressed. Management of the auditee, who spend a whole year working on the business generating the financial results, rely on the auditors to be knowledgeable enough to point out deficiencies to them. In order to address the full spectrum [...]

Scepticism and Reasons for Audit Failures2025-03-28T14:47:05+02:00

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