AGSA Initiates Governance Review of External Audit Partner Following IRBA Sanctions

Posted 30 July 2026 Written by Acts Online
Category Auditing & Regulatory Compliance

Brought to you by SAnews: The Audit Committee of the Auditor-General of South Africa (AGSA) has convened a special session to evaluate governance and quality assurance risks regarding external audit firm Crowe, following regulatory sanctions issued against a senior partner by the Independent Regulatory Board for Auditors (IRBA).

In terms of the Public Audit Act, No. 25 of 2004 and the Auditing Profession Act, No. 26 of 2005, the Supreme Audit Institution relies on registered auditors and private firms to execute public sector audit mandates. The risk assessment was initiated after IRBA issued adverse findings and sanctions against Crowe partner Gary Kartsounis for audit quality deficiencies on unrelated files.

The inquiry also follows public scrutiny surrounding financial valuation services provided by Kartsounis in a commercial transaction between the Public Investment Corporation (PIC) and Acapulco regarding the acquisition of a stake in Lanseria Holdings.

Key actions and oversight measures implemented by the AGSA include:

  • Audit Committee intervention: Convening a special session to review management explanations from Crowe and evaluate potential risk exposures to AGSA audit engagements.
  • Enhanced quality assurance: Requesting additional independent assurance from Crowe to verify that AGSA public sector audit processes remain uncompromised.
  • Governance assessment: Placing enhanced oversight mechanisms over external audit sub-contracting while the National Audit Office concludes its formal risk assessment.

Deputy Auditor-General Bongi Ngoma stated that while the IRBA disciplinary findings and transaction valuations were separate from AGSA public audits, the constitutional body must enforce strict governance standards. The AGSA will announce its formal outcomes and required actions upon conclusion of the risk review.

What this means for you, your business, or your clients

  • For yourself: Registered auditors and finance professionals must maintain strict compliance with IRBA quality standards, as professional sanctions affect eligibility for public sector engagements.
  • For your business: Audit firms sub-contracted by the AGSA or state entities must maintain active risk management protocols and disclose IRBA regulatory sanctions or disputed valuations promptly.
  • For your clients: Entities engaging in transactions involving public funds or institutional investors like the PIC must ensure valuation services and statutory audits are conducted by fully compliant, unsanctioned practitioners.

Originally published at https://www.sanews.gov.za/south-africa/agsa-probes-external-auditor

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