South Africa: AGSA Probes External Auditor

The Auditor-General of South Africa (AGSA) is looking into a partner at audit firm Crowe, following revelations that a senior partner performed a disputed valuation related to the acquisition of a stake in Lanseria Holdings.

Auditor Gary Kartsounis provided financial valuation services in a transaction between the Public Investment Corporation (PIC) and Acapulco regarding the acquisition of a stake in Lanseria Holdings. The valuations are now being questioned.

The matter also relates to the Independent Regulatory Board for Auditors (IRBA)'s adverse findings and sanctions against Kartsounis, arising from audit files unrelated to AGSA that did not meet the IRBA's quality standards.

"As a proactive response to the circulating allegations involving our external auditors, our audit committee has since convened a special session to evaluate this risk and to obtain an explanation from Crowe's management.

"Whilst this matter is completely unrelated to the AGSA audit process, the audit committee took a proactive step by requesting the firm to provide additional assurance on the AGSA audit process," said Deputy Auditor General Bongi Ngoma in a statement.

Ngoma said AGSA is ensuring that enhanced oversight measures are in place.

"As a supreme audit institution that is constitutionally mandated to ensure good governance by those it audits (auditees), we have to lead by example at all times and ensure that our governance systems and reputation are unquestionable.

"To this effect, when all the assurance and risk assessment processes have been completed on this matter, the National Audit Office will announce the outcomes and the way forward," she said.

AGSA has assured the public and stakeholders that the matter is receiving attention from its audit committee and management to ensure that the AGSA audit is not compromised and that the correct safeguards are in place.

Read the original article on SAnews.gov.za.