Deloitte’s Lwazi Bam on rebuilding trust in the auditing profession

Deloitte Southern Africa CEO, Lwazi Bam, shared his views on the 2019 budget speech during a recent interview on CNBC Africa. Reflecting on the budget, Bam commended the Minister for addressing hard truths concerning state-owned enterprises (SOEs). He emphasized the importance of questioning the necessity of SOEs and advocating for their improved efficiency to benefit the economy. Despite acknowledging the challenging economic environment, Bam lauded the Minister's efforts in presenting a well-structured budget. Bam further delved into the critical issue of rebuilding trust in the auditing profession, highlighting its significance for attracting foreign investments. He acknowledged the global struggle faced by the auditing industry in restoring credibility and stressed the ongoing initiatives aimed at enhancing trust and governance standards. Bam referenced international developments, particularly in the UK, as well as local strategies in South Africa, such as exploring measures like capping audit firms' market share and promoting shared audits among smaller firms. These efforts, coupled with reevaluation of accounting standards, are set to reinforce trust in the auditing sector. As the discussion turned to the sensitive topic of Steinhof, Bam tactfully navigated the query, indicating the delicacy of the issue without disclosing specific details. This cautious approach underscores the complex nature of handling sensitive matters within the auditing landscape. The overarching theme of the conversation revolved around the imperative task of rebuilding trust in the auditing profession, both locally and globally. Bam's insights shed light on the proactive measures undertaken by audit firms, including Deloitte, to address past mistakes and enhance accountability. The industry's trajectory towards improved governance and transparency reflects a collective commitment to restoring stakeholders' confidence. In conclusion, Bam's perspective underscores the evolving nature of the auditing landscape, marked by introspection and reform to instill trust and integrity. As the auditing profession navigates through challenges and regulatory changes, the emphasis on transparency and accountability remains paramount to foster a culture of trust and reliability in financial reporting.