Page 4 - KZN BUSINESS SENSE Vol3 No3

WHAT IS MANDATORY AUDIT FIRM ROTATION?

Farouk Ebrahim issued a Rule prescribing that conflicting interests (e.g. if The implementation of MAFR jurisdictions, it is safe to say that
(CA) SA, Managing auditors of public interest entities the auditor owns shares in the does not only have an impact on there has not been universal
Partner, Regional must comply with Mandatory company to be audited). In the audit firm, but will also have acceptance or rejection of MAFR.
Audit – KwaZulu- Audit Firm Rotation (“MAFR”) addition to technical competence, a significant impact on public
The profession, business
Natal with effect from 1st April 2023. auditor independence is the most interest entities, audit committees, leaders and other stakeholders
This has been included in
A uditor section 10 (1) (a) of the Auditing the credibility of the audit investors. are engaged in continuous
important factor in establishing
regulators, shareholders and
discussions with the IRBA on the
Profession Act, 26 of 2005.
opinion.
implementation of MAFR.
MAFR has been implemented
independence The purpose of an audit is MAFR refers to the rotation of in a number of jurisdictions,
is the to enhance the credibility of the audit firm, i.e. the audit firm most recently in the European MAFR is sure to change the
cornerstone financial statements by providing cannot be reappointed after the Union; but there are also other auditing landscape in South
of the an independent opinion that they prescribed tenure. If an audit jurisdictions where it has been Africa forever. 
auditing present fairly in accordance with firm has served as the auditor considered, but not implemented.
profession. the applicable financial reporting of a public interest entity for ten Furthermore, other countries T: 031 327 6000
The framework. This objective will or more consecutive financial have implemented MAFR only to E: farouk.ebrahim@kpmg.co.za
Independent not be met if users of the audit years before the financial year withdraw or repeal it later.
Regulatory Board for Auditors report believe that the auditor commencing on or after 1st April
(“IRBA”) - the statutory body may have been influenced by 2023, then the audit firm shall not Taking into account available
responsible for the regulation of other parties, more specifically accept reappointment. research on the topic of MAFR
and the experience in various
auditors in South Africa – has company management or by

EMPOWERING PEOPLE

r Calvin Mathibeli is the The impetus for Mathibeli’s receiving many accolades. Recent
founder of Calvin and business career took place after awards include:
MFamily Group (CFG) one of his cell phone repair
and has been in business for customers, impressed by his ■ The Oliver Top Empowerment
12 years. initiative, offered to mentor him in Awards 2017: Top Empowered
township property development. Entrepreneur of 2017 Award
Mathibeli’s working career and Fastest Growing Black
started while he was still a “With the little money I had Owned Company
student at the Durban Institute saved I started to buy and sell land ■ 2017 Vision 2030 SMME
of Technology, then Durban in the township areas. After I Awards
University of Technology. acquired enough capital I started
to buy and then develop the land ■ National Entrepreneur
In order to fund his studies prior to selling,” said Mathibeli. Champion Awards
and provide an income for his ■ Impumelelo Top Empowered
accommodation and living costs, During this time Mathibeli
Mathibeli spent his days as a invested all his profits back into Companies, Certificate of
student and the evenings as a his business and was operating Excellence
businessman selling cell phone out of the boot of his car as well as ■ Forbes 2017 list of the 30 Most
accessories at The Wheel in from spaza shops. He opened his promising Young African
Mahatma Gandhi Road, Durban, first office in 2008 and his business Entrepreneurs
after identifying a market demand has continued to grow and he
in the evenings. has never looked back. Currently, Mathibeli’s success has
70% of his clientele consist of also seen him take on other
He said, “I had to walk from middle income private developers entrepreneurs and he has assisted
Durban south beach to the and 30% government contracts. them to establish and grow their
Tech every day and I saw an The company is now registered businesses. He says, “I think
opportunity to service the needs with the Construction Industry mentoring is my passion, I love to
of tourists in the area who often Development Board (CIBD) and empower people and I am proud
required cell phone repairs or has level seven registrations for to say that although I am young,
accessories such as charges, civil engineering and general only 30, I have made some multi-
batteries, covers, etc. after the building, complying with all millionaires.”
main shops had closed.” construction regulations. “I look for people who have
Mathibeli decided to gamble However, Mathibeli said that vision. Many young people have
with the R500 savings that he he noticed that when looking brilliant ideas but are hampered
had to buy stock and persuaded at successful people one of the by red tape, have no funding and
a store-owner to give him a small things that inspired him was that have no surety. I provide funding
space to set up shop. He said, “Life they all had multiple streams of in return for shares in their
is about choice. I had to choose, income in common. businesses, which allows them Calvin Mathibeli
whether to give up my studies or to establish going concerns over
soldier on.” Consequently, Calvin and which they have direct control create 5000 jobs,” says Mathibeli. opportunities. You must create
Family Group has diversified He commented that this cannot your own opportunities that create
Juggling being a student and into a number of industries, However, he says, mentorship be achieved by only offering employment.”
a running a business was not including, security services, is necessary if you want people
without difficulty. “I had to engineering consulting, project to succeed. Some people have employment on construction sites Mathibeli concluded, “I am
as this was limited but that it could
divide myself, which was a real management, branding, printing a passion for business but do be achieved through growing creating a legacy. I felt the pains of
a challenge. I did very well in and marketing — Black Pride not have management skills or businesses in township areas. this world at an early age. I can’t
my studies and coped because I Media, and SA Precast. The latest self-discipline. They want to buy do anything about the past but I
realised I needed to ask questions addition is Unique Lifestyle Café – a Ferrari but do not understand In addition, Mathibeli says, can shape my future.” 
in class. I had to make sure that I an upmarket restaurant located in the hardships that have preceded “Radical economic transformation
clearly understood what we were Umhlanga, KwaZulu-Natal. owning one.” will not be achieved through
learning so that I could work in obtaining tenders but through
the evenings. I always say success Awards # 5000 Jobs creating industrialists so
is a choice, it not about luck, it is This business success has A further passion is socio and that we can have sustainable
about the effort, dedication and resulted in Mathibeli and the economic empowerment. “My employment opportunities. It is
the hard work that you put in.” Calvin and Family Group vision is that in five years we will important that we don’t wait for

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