South Africa’s Independent Regulatory Board for Auditors (IRBA) has published its 2026 Annual Report, highlighting audit quality, ethical conduct, technology and sustainability assurance as important areas for the profession. The report covers the year ended 31 March 2026 and was published on 9 October 2026. Read the IRBA announcement.

Although the report is directed primarily at the auditing profession, its themes matter to businesses that prepare annual financial statements, undergo audits or independent reviews, or provide financial information to lenders, investors, customers and larger corporate groups.

What the IRBA report highlights

IRBA reported that positive inspection outcomes at engagement level increased from 38% in 2019 to 49% in 2026. The regulator also noted that significant audit-quality challenges remain, meaning businesses should not treat a completed audit as a substitute for sound internal financial controls.

The report also records South Africa’s adoption of International Standard on Sustainability Assurance 5000 and related international ethics standards for sustainability assurance. IRBA further adopted revised international auditing standards dealing with fraud and going concern. These developments are relevant to organisations whose stakeholders increasingly expect reliable information about financial resilience, governance and sustainability-related matters.

Who should pay attention?

Companies with statutory audit or independent-review requirements should monitor how their auditors interpret evolving standards and documentation expectations. Finance teams supporting groups, tenders, funding applications or major customer relationships may also face requests for more structured and credible financial information.

Smaller businesses may not be directly subject to sustainability assurance requirements. However, they can still be affected indirectly when a large customer, funder or parent company requests information about emissions, governance, fraud controls, going-concern risks or financial performance.

What businesses should check

  • Financial close: Are reconciliations, review procedures and supporting documents completed consistently before the annual statements are prepared?
  • Going concern: Does management maintain realistic cash-flow forecasts and document how liquidity risks are assessed?
  • Fraud risk: Are payment approvals, supplier changes, access rights and segregation of duties reviewed regularly?
  • Data quality: Can the business trace key figures from management accounts to the underlying accounting records?
  • Sustainability information: If customers or funders request non-financial data, is there a clear owner, evidence trail and review process?

Practical next steps for finance teams

Use the IRBA report as a prompt for a pre-year-end control review rather than waiting for audit queries. Ask the external accountant or auditor which areas are likely to receive greater attention, particularly fraud risk, going concern, estimates and the reliability of data used in reporting.

Management should also record significant judgements and assumptions as they are made. Clear working papers make it easier to explain results to directors and reduce delays during the audit or independent review.

For SMEs, the immediate priority is not to adopt every emerging reporting practice automatically. It is to maintain accurate books, timely reconciliations and evidence-based financial decisions. Businesses seeking support with bookkeeping, financial reporting or advisory processes can explore YFP’s accounting and business advisory services.