The legal regulation of the external company auditor in Post-Enron South Africa

SUNScholar Research Repository

Show simple item record

dc.contributor.advisor Van Wyk, A. H. en_ZA
dc.contributor.author Drake, Hannine en_ZA
dc.contributor.other University of Stellenbosch. Faculty of Law. Dept. of Mercantile Law.
dc.date.accessioned 2009-03-02T05:56:03Z en_ZA
dc.date.accessioned 2010-06-01T08:45:30Z
dc.date.available 2009-03-02T05:56:03Z en_ZA
dc.date.available 2010-06-01T08:45:30Z
dc.date.issued 2009-03
dc.identifier.uri http://hdl.handle.net/10019.1/2301
dc.description Thesis (LLM (Mercantile Law))--University of Stellenbosch, 2009.
dc.description.abstract The worldwide increase of corporate failures on the scale of Enron and WorldCom has sparked a renewed international trend of corporate governance review. With the external company auditor blamed at least in part for many corporate failures, corporate governance reform also necessitates a review of the statutory regulation of the company auditor. In particular, the lack of auditor independence when auditing clients has been under the legislator’s spotlight. The problems associated with unregulated or poorly regulated auditors are well illustrated by the activities of auditing giant Arthur Andersen. In the US, the Sarbanes-Oxley Act has been promulgated in reaction to corporate failures, imposing many new legislative restrictions on the auditor. The UK has a more tempered, selfregulatory approach. South Africa, following international trends with its recently promulgated Auditing Profession Act and Corporate Laws Amendment Act, has also greatly increased the regulation of auditor independence. The question is now whether these new restrictions in the wake of corporate failures have been the right approach with which to prevent future failures and to provide adequate protection to shareholders. Although the general legislative increase in auditor awareness is welcomed, the efficacy of several provisions in South African legislation can be questioned. Widespread reform has taken place in the appointment and remuneration of the auditor, which now has to be independently determined by the audit committee. In particular, South Africa’s new regulation of non-audit services, and the lack of refined regulation on compulsory auditor rotation as well as the cross-employment of auditors by clients, needs a critical discussion. It is submitted that the discretion of a well-regulated audit committee, combined with increased disclosure and transparency, should be enough to regulate most of the key aspects of auditor independence. Care should be taken to not overlegislate in haste to reform. South Africa needs a flexible and customised approach in this regard. en_ZA
dc.language.iso en en_ZA
dc.publisher Stellenbosch : University of Stellenbosch
dc.subject Corporate governance en_ZA
dc.subject Auditor independence en_ZA
dc.subject Corporate law en_ZA
dc.subject Corporate governance reform en_ZA
dc.subject Theses -- Law en_ZA
dc.subject Dissertations -- Law en_ZA
dc.subject.lcsh Corporation law -- South Africa en_ZA
dc.subject.lcsh Auditor-client relationships -- South Africa en_ZA
dc.title The legal regulation of the external company auditor in Post-Enron South Africa en_ZA
dc.type Thesis en_ZA
dc.rights.holder University of Stellenbosch
dc.subject.corp South Africa -- Auditing Profession Act en_ZA
dc.subject.corp South Africa -- Corporate Laws Amendment Act en_ZA


Files in this item

This item appears in the following Collection(s)

Show simple item record

-->