IRBA Releases 2025 Public Inspections Report

Posted 18 March 2026 Written by Acts Online
Category Auditing

Brought to you by SA Accounting Academy: The Independent Regulatory Board for Auditors (IRBA) has released its 2025 Public Inspections Report on Audit Quality, covering the second year of the ninth inspections cycle.

In terms of the Auditing Profession Act, No. 26 of 2005, the IRBA conducts inspections to monitor compliance with professional standards. The 2025 report covers the period from 1 April 2024 to 31 March 2025. During this financial year, the IRBA inspected 25 firms and issued 20 firm-level reports, with a specific focus on Public Interest Entities (PIEs) and high-risk audit engagements.

The inspections identified several recurring deficiencies that firms must address to maintain audit quality. Key areas of concern include:

  • Revenue recognition: Persistent failures in the verification and timing of revenue recorded in financial statements.
  • Journal entries: Inadequate testing and documentation of manual and automated journal entries.
  • Information Technology (IT) controls: Over-reliance on IT systems without sufficient testing of the underlying controls.
  • Professional scepticism: Deficiencies in the application and documentation of professional judgement during the audit process.

The IRBA’s monitoring also focused on the implementation of quality management systems, leadership commitment, and the effective use of technology in the audit process. The report underscores the necessity for firms to enhance their consequence management and mandatory training protocols to address these systemic issues.

Click here to download the Public Inspections Report 2025.

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

  • For yourself: Registered auditors must ensure that work papers explicitly document the application of professional scepticism and the rationale behind key professional judgements to meet IRBA inspection standards.
  • For your business: Audit firms must review their internal Quality Management Systems (ISQM 1 and ISQM 2) to specifically address recurring deficiencies in IT control testing and revenue recognition procedures.
  • For your clients: Clients classified as Public Interest Entities (PIEs) should expect more intensive scrutiny of journal entries and revenue cycles as auditors align their methodologies with the IRBA’s high-risk focus areas.

Originally published at https://accountingacademy.co.za/news/read/irba-2025-public-inspections-report

The views expressed herein are those of the author and do not necessarily reflect those of Acts Online. Acts Online accepts no responsibility for the accuracy, completeness or fairness of the article, nor does the information contained herein constitute advice, legal or otherwise.