Who should detect corporate fraud scandals, like Steinhoff? Not only the auditors, says world authority

Auditors in South Africa and elsewhere are under the spotlight for failing to expose corporate frauds. South African multinational Steinhoff teetered on the brink of collapse after German authorities revealed they were investigating irregularities in late 2017 - yet well-established elaborate schemes underpinned the financial jiggery-pokery. And, SA taxpayers have been wondering where the auditors were in the state capture years under former president Jacob Zuma. Earlier this year, finance minister Tito Mboweni dissolved the country’s scandal-wracked audit body watchdog, Independent Regulatory Board for Auditors - which was run by audit professionals who failed to notice irregularities under their noses. Earlier this week, Deloitte Africa CEO Lwazi Bam hosted a fireside chat with Sir Donald Brydon, author of the Brydon Report, which is influential in debate on audit reforms globally. Sir Donald Brydon was at pains to note that it is not only up to auditors to spot fraud: shareholders, directors and regulators should take more responsibility. Chairman of the SA Institute of Chartered Accountants and Deloitte CEO Lwazi Bam spoke to Jackie Cameron, for BizNews, about the Brydon report and what it might mean for detecting fraud at listed companies in future. Learn more about your ad choices. Visit megaphone.fm/adchoices