Minister of Finance Publishes Maximum Monetary Fines

On 15 June 2023, the Minister of Finance, Enoch Godongwana, gazetted the Maximum Monetary Fines, in terms of Sections 51(2) and 51B(3)(b) of the Auditing Profession Act 26 of 2005 (as amended in 2021), which empowers the Minister to set maximum monetary sanctions. These are the maximum fine limits, and they are not fixed.

The maximum fine that the Enforcement Committee may impose on an individual auditor who concludes an admission of guilt process, is now set at R5 million, while it is R15 million for an audit firm. Where the Enforcement Committee refers a matter to the Disciplinary Committee for a hearing, the maximum fine that the latter may impose, following a disciplinary hearing process resulting in a finding of guilt, is R10 million for an individual auditor and R25 million for an audit firm.

The new maximum fines are applicable to all improper conduct committed after the amendment to the Act, i.e. after 26 April 2021.

The Government Gazette, published by the Minister of Finance, is available on: