Ntlambi Gulwa CA(SA), the IRBA’s Director Inspections, started her remarkable life journey in the lush landscapes of the Eastern Cape. Hers is a story of perseverance, determination and a deep-rooted commitment to making a difference.
Growing up in the small village of Ngcwazi, Ntlambi’s passion for education and her drive to overcome challenges were evident from an early age.
Despite limited resources, she excelled in her studies and developed a thirst for knowledge. ‘My parents instilled in me the values of hard work and integrity that would become the cornerstones of my success.’
After completing her education degree at the University of Transkei, Ntlambi embarked on a teaching career, making a positive impact in her community. However, her insatiable curiosity and her desire for personal growth eventually led her to a crossroads that would change the trajectory of her life.
‘Taking a leap of faith, I transitioned from the classroom to the world of finance and began my journey toward becoming a CA(SA) and a Registered Auditor (RA),’ says Ntlambi.
Today, Ntlambi servers as the Director Inspections at the Independent Regulatory Board for Auditors (IRBA). In this role, she leads a team responsible for ensuring the quality and compliance of audits within the financial industry.
Her experience as an auditor, combined with her dedication to transparency and accountability, makes her a driving force in shaping the auditing landscape.
When it comes to audit reform, Ntlambi explains: ‘Audit reform includes a focus on audit quality, sustainability and relevance of the regulator and the profession, as well as comprehensive stakeholder engagement with the view to promote broader reforms. The IRBA’s aim is to rebuild trust in financial reporting and regain confidence in the financial markets. This needs to be achieved together with improved audit quality.’
Part of the restoring confidence efforts will be to take ownership of the narrative about the IRBA and the profession through visible and transparent stakeholder engagements.
‘Audit reform should be contextualised. While the current reform is primarily due to the conduct of a few auditors, the IRBA must respond proactively and appropriately with measures to address those areas which remain a concern.’
However, the IRBA as the regulator can only do so much that is within its mandate. This has led to the focus on the broader financial reporting ecosystem.
‘Furthermore, the current socio-political climate has resulted in auditing receiving more media attention. The level of public interest is far higher than ever before. Such an environment demands that audit quality be prioritised,’ says Ntlambi.
‘This calls for a higher awareness by auditors of the broader public interest responsibility that is placed on their shoulders and the need to act ethically, with integrity and with professional due care.’
According to Ntlambi, there is still broad consensus that auditors remain a key stakeholder in protecting the interests of the investing public and are an important contributor in attracting much needed investments to the country.
‘Our country desperately needs to attract investment to boost its economy, which leads to private sector growth that creates jobs and generates revenue for the fiscus. Local and foreign investment is underpinned by sound financial reporting and high quality audited financial information. Everyone – employees, investors and the state – need a high level of assurance that the financial information published by companies reflect their true financial performance and position.’
The financial reporting ecosystem consists of a multitude of key role players. An audit is not performed in isolation, which, according to her, can be a challenge for effective audit reform.
‘For example, there is reliance that needs to be placed between the various key role players in the ecosystem. A failure in the duties and responsibilities of a single stakeholder could have significant effect on the quality of the audit.’
The objective of aligning auditor behaviour and integrity with the relevant ethical requirements is key to achieving the IRBA’s strategy to restore confidence. ‘Such ingredients are crucial to restoring trust in the profession. Key initiatives to achieve this objective includes amendments made to the IRBA Code of Professional Conduct for Registered Auditors, with new ethics provisions.’
From an inspections point of view, Ntlambi and the IRBA have seen a sharp rise in related inspection findings.
‘The 2022 Public Inspections Report on Audit Quality includes a concerning increase in the number of findings over the past four years relating to the Relevant Ethical Requirements element of the International standards on Quality Control (ISQC 1), specifically with regard to matters affecting the independence of the audit firm and its auditors. The deficiencies reported on for this element increased from 5% in 2019 to 46% in 2022 of the total ISQC 1 deficiencies identified. Similarly, globally, the 2022 IFIAR Survey shows that the highest number of firm-level inspection findings are related to independence and ethics.’ The role of Director Inspections at IRBA encompasses a multifaceted commitment to enhancing audit quality, promoting transparency, and safeguarding the interests of all stakeholders.
‘Through a combination of diligence, adaptability, collaboration, and ethical guidance, we contribute to the strength and resilience of the auditing profession, underpinning trust and confidence in financial reporting. As we continue to navigate a rapidly changing landscape, our dedication to these principles remains unwavering, ensuring a robust and credible audit environment for years to come,’ Ntlambi concludes.
Author
Marteli Brewis
