Auditor General Kimi Makwetu has raised concerns about the number of audits that do not reflect the true state of affairs in companies and government institutions.
Makwetu was speaking at the Brand Summit 2019 being held in Sandton, Johannesburg.
Makwetu says the audit profession needs a clean-up.
He says that some in the profession are paid to turn a blind eye on certain financial aspects.
According to Makwetu, the profession has had a hand in aiding corruption and state capture.
He has urged the industry to reclaim its rightful space by reflecting on the true state of financial affairs in both government and the private sector.
“Accounting practice and auditing standards do not always result in the production of financial statements which timeously or adequately warn of impending disaster. In fact opposite scenarios are often portrayed,” says Makwetu.
Makwetu says new measures have been put in place to ensure that public funds are utilised accordingly.
He says as an auditing institution, his office can can now examine the accounting and financial records of any institution that is publicly funded.
In addition, he hopes that with the amended Audit Act, this will ensure that audit opinions in South Africa are taken seriously.
Makwetu says that South African organisations should stay true to their values.
He says organisations should commit to delivering services to the people and ensure that funds are used to deliver services.
He says this will make it easier to see how government’s funds are being spend.