MAFR Supreme Court of Appeal Judgment

The IRBA received the Supreme Court of Appeal judgment on 31 May 2023, setting aside the Mandatory Audit Firm Rotation (MAFR) rule. The IRBA respects the judgment and appreciate that the outcome is based on a technical legal interpretation which should not bring into question the value and/or effectiveness of MAFR.

While it is no longer mandatory to comply with MAFR, independence of registered auditors from their clients is a key principle of effective external audits and, in addition to the rotation of partners every five years, the IRBA is of the view that rotation of audit firms further strengthens the independence of the auditor and the firm. Though MAFR has been set aside, the independence provisions in the IRBA Code of Professional Conduct for Registered Auditors are still in effect and must be adhered to.

The IRBA will work urgently with all stakeholders to address the legal issue on the basis of which MAFR was set aside.