Auditors to become BEE verification agents

The Department of Trade and Industry has now gazetted for comment their plan to open BEE verification to the auditing profession. This move comes after serious conflict and controversy in the industry; with the currently accredited BEE verification agencies offering little consistency.
Keith Levenstein, CEO of EconoBEE, has long been a proponent of such a solution to the verification turmoil.
"We have been calling for the auditing profession to step in since 2006 because we believed it would encourage more rapid transformation by making the process quicker and easier for business. This is a very positive move for verification!'
"In particular, it creates a second regulator capable of accrediting auditors - the IRBA (Independent Regulatory Board for Auditors) to do BEE verification. This will create competition and with that provide more consistency;' states Levenstein.
Levenstein continues; "From a business perspective, this will certainly make verification easier and quicker by virtue of the approach that can now be taken. We would anticipate seeing more businesses approach verification much the same why they approach their financial audit, in that an annual internal self-assessed scorecard will be submitted to the relevant authorities to be audited.'
Whilst this move will increase the number of accredited agencies; this is not a "blanket exercise' that sees all registered auditors accredited for BEE verification.
The IRBA will need to prepare similar documentation to SANAS, the current Verification Agency Regulator, to ensure that members wanting to offer a verification service meet certain minimum conditions.
Only auditors who qualify, and comply with all DTI gazettes, will be accredited to issue a BEE Certificate. Proof of competency will be determined through rigorous training and an assessment of practical experience.
Comments can be submitted for 60 days from 31 Dec 2010 to [email protected]. After the commentary phase the documents may be amended and thereafter, gazetted.
"The implicit target date for implementation is 1st April 2011 and we encourage all businesses to submit their comments within the allocated timeframe in order to see a boost in BEE compliance and ultimately transformation;' concludes Levenstein.
If you are an IRBA registered auditor and wish to explore BEE verification as a new business opportunity; please contact EconoBEE's Accreditation and Regulation division for advice, knowledge, infrastructure creation and accreditation. Visit www.econobee.co.zafor more information.