IRBA: Compliance Requirements for Auditing Listed Entities

Posted 15 December 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The Independent Regulatory Board for Auditors (IRBA) has highlighted the regulatory obligations and inspection requirements for audit firms operating within the listed entity environment.

In terms of Section 3.87 of the Johannesburg Stock Exchange (JSE) Listings Requirements, any firm proposed as an auditor for a listed entity must be subject to a firm-wide independent quality management inspection performed by the IRBA. This inspection must have occurred within a current or previous inspection cycle to satisfy accreditation standards.

The IRBA notes that recent modifications to the JSE auditor accreditation model have increased the number of firms entering the listed space. This shift necessitates a rigorous focus on the Auditing Profession Act, No. 26 of 2005 and adherence to the International Standards on Auditing (ISAs). Firms are specifically encouraged to strengthen quality management systems to mitigate risks associated with complex listed audits.

Key focus areas for firms include:

  • Ensuring audit teams possess deep technical knowledge of ISAs applicable to listed environments;
  • Maintaining robust internal quality management systems subject to IRBA oversight; and
  • Adhering to the specific disclosure and accreditation mandates set out in the JSE Listings Requirements.

Click here to download the IRBA News Issue 71 and the IRBA Inspections Audit Risks Report.

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

  • For yourself: You must ensure your technical knowledge of ISAs is current and specifically tailored to the reporting complexities and risk profiles of listed entities.
  • For your business: If your firm intends to audit JSE-listed companies, you must schedule and pass a firm-wide independent quality management inspection performed by the IRBA to comply with Section 3.87 of the JSE Listings Requirements.
  • For your clients: Listed clients must be advised that their choice of auditor is contingent upon the firm’s successful IRBA inspection status to avoid non-compliance with exchange rules.

Originally published at https://accountingacademy.co.za/news/read/irba-heightened-responsibilities-and-risks-in-auditing-listed-entities

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