MPs question 7-year contract offered by Auditor-General to external audit firm

CAPE TOWN - Members of Parliament (MPs) have raised concerns over the seven-year external audit contracts offered to private audit firms by the Auditor-General (AG).

They say they’re not comfortable with the reinstatement of the same audit for lengthy periods, saying it raises questions over independence.

AG Tsakani Maluleke and her office briefed the standing committee on the Auditor General on its 2023/24 annual report.

While MPs welcomed the annual report by the Office of the AG, they’re not entirely convinced by the contract offered to private audit firm Crowe to audit the AG.

ALSO READ: MPs concerned non-payment of audit fees will impact work of Auditor-General

They want the AG to rotate its audit partner more frequently.

African National Congress (ANC) MP Shaik Imraan Subrathie questioned the length of the contract.

"Are we sure that the independence is not compromised after seven years? Should there not be a change in firms, and have you explored other options? Because seven years is a long time."

Grathel Motau, the AG’s audit committee chairperson, said seven years was the international benchmark.

"Seven years is normally considered, beyond seven years, then your independence is compromised."

Motau added the AG was also forced to choose from a limited pool of what she called “mid-tier” audit firms because the big five companies are mostly conflicted.