Fin24 reports that according to the Independent Regulatory Board for Auditors (IRBA), the local auditing profession is bleeding from the "great resignation" trend, which poses a risk to SA's audit quality in the long run.
These findings were part of IRBA's 2022 Audit Quality Indicators Report based on data collected from JSE-accredited audit firms from 2018 to the end of 2021. When looking at turnover trends, the IRBA included only staff who had left local auditing firms but excluded those whose training contracts ended during the periods under review. Four of the firms recorded partner turnover of at least 20% in 2019. In 2020, only one firm had a partner turnover of nearly 20%. At supervisor and managerial level, staff left in droves. Five of the 13 firms in the report had between 50% and 70% supervisor turnover. At managerial level, nine firms recorded at least 20% manager turnover in 2021, with one approaching the 50% mark. Managerial turnover was also high in 2019, with some firms reporting between 40% and 55% staff turnover. IRBA CEO, Imre Nagy said talent leaving the country due to emigration was increasing, with young families leaving to seek out more attractive and lucrative opportunities in other countries. Nagy added that growth in remote working opportunities amid a talent shortage in Western economies had seen many auditors take up foreign-based assignments, even if they still lived in SA. "The pulling of talent with lucrative offers that tap into these trends is a growing pain point for South African audit firms as firms need to find innovative ways to support new partners and their engagement teams to ensure continuity in high audit quality," Nagy noted.
- Read the full original of the report in the above regard by Londiwe Buthelezi at Fin24 (subscriber access only)
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