The ASB often hears concerns about entities over‑relying on consultants when preparing their financial statements. This is also a long-standing concern reported by the Auditor-General of South Africa and research published by SAICA confirmed these concerns.
The ASB published guidance on when it may be appropriate to use consultants.
Is the use of consultants always bad? Definitely not. But they should be used responsibly.
The key message is that consultants should add value, not replace the role of employees, and management of the entity remains ultimately responsible for their work.
Disclaimer
The article has been prepared by the Secretariat of the ASB for information purposes only. It has not been reviewed, approved, or otherwise acted on by the Board.