Emma Mashilwane CA(SA), RA, MBA is the co-founder (majority shareholder) and CEO of MASA Auditors which provides internal audits, external audits, IT audits and advisory services.
MASA Auditors comprises MASA Risk Advisory Services Pty Ltd (MASA Risk) and MASA Chartered Accountants Incorporated. Both entities are accredited training offices for SAICA (MASA Risk is for the risk management elective) and MASA Inc is also registered with the IRBA.
‘My key responsibilities as the CEO include providing strategic leadership on overall practice management human capital management, client liaising and overall stakeholder management, business development, brand positioning and visibility within and outside the profession, to name a few,’ explains Emma.
Emma defines audit reform as: ‘The transformation process envisaged and required to implement interventions and measures to restore trust and confidence in the auditing profession in response to the various corporate scandals and audit lapses that have occurred over the past two decades leading to significant reputational damage and credibility deficit in the auditing profession.’ She continues: ‘Accountants and auditors play a critical role in the financial ecosystem of any economy due to reliance on our work by the users of the financial statements.’
A functioning auditioning profession is key to ensuring good corporate governance and enabling growth in any economy.
‘The auditing profession is anchored in the public interest and it is crucial to ensure that the interest of the public is always protected. This means we need to reflect and understand what the root causes of the various audit transgressions are in order to consider appropriate measures to address the lapses.’
Change, according to Emma, is never easy and will be the biggest stumbling block when it comes to audit reform.
‘There might be a lack of buy-in and some level of resistance to change by stakeholders. In addition, there might be a lack of trust in the whole process because of being too comfortable with how things are done, and some element of self-interest might be at play to derail the process.’
To ensure the success of audit reform, Emma believes, it is important to think creatively and explore innovative approaches that go beyond conventional ways of doing things. ‘This will require looking at the entire audit process lifecycle and implementing fresh, new ideas while still conforming to current regulations.
‘It is therefore important to think outside the box, to identify opportunities for improvement, enhance efficiencies, and strengthen the overall effectiveness of the auditing profession. It is crucial to strike a balance between pushing boundaries and working within the regulatory requirements which might prove to be a challenge.’
Integrity and ethics play a critical role within any profession. ‘As audit professionals, integrity is our foundational value and a licence to trade, and it goes without saying that ethics are the bedrock of the auditing profession.’
In order to restore trust and confidence in the profession, the institutes and regulators play a critical oversight role to ensure that accountants and auditors are held accountable for any lapses in ethics.
‘It is encouraging to see that SAICA and the IRBA have strengthened capacity within their inspections and investigations to ensure that unethical matters are dealt with speedily and appropriately. Ethics should be something where we “err” on the side of caution rather than looking for loopholes and opportunities to exercise discretion.’
There is a strong need, according to Emma, for collaboration between the professionals. ‘For example, firms, professional bodies, retired accountants and auditors and businesses, and universities should consider enhancing the curriculum to incorporate emerging trends like digital transformation, robotics process automation, critical thinking, fraud risk management, communication skills and storytelling to ensure that candidates are better placed to handle the changing business landscape.’
Current CAs(SA) also need to uphold the ethical values and norms that are entrenched in the profession. ‘We should lead by example so that the upcoming candidate CAs can view the auditing profession as an attractive career option.
‘As professionals, we also need to keep our eye on ensuring that there is continuing transformation within the auditing profession. Unisa traditionally has contributed most black CTA candidates due to its distance learning and affordable operating model, but unfortunately it has experienced a number of structural challenges over the last couple of years which threaten the transformation agenda. It is important that there is keen focus and support to ensure that Unisa restores its credibility and reputation.’
Author
Marteli Brewis