Assessing the Factors and Effects of the Decline of Registered Auditors in the South African audit Firms

Abstract

The article assessed the factors and effects of the decline of registered auditors (RAs) in South African audit firms. The decrease in the number of registered auditors has become a pressing issue, raising concerns about the assurance industry’s ability to maintain the number of registered auditors and continue providing assurance services to public and private entities. A mixed methodology surveyed RAs registered with the South African Institute of Chartered Accountants and the Independent Regulatory Board of Auditors to identify trends, challenges, and opportunities in the audit profession, and to assess how the decline of RAs impacts the assurance industry. The decline of RAs strains client demands, raises workloads, and causes a shortage of audit firms, affecting audit quality and methodologies. Firms struggle to attract talent due to regulatory, economic, and work-life issues, leading to higher fees, compliance costs, and training needs. Smaller firms are disproportionately impacted, scaling back assurance services. This study highlights the urgent need for regulatory bodies to address the compliance issues faced by audit firms and find solutions to attract and retain talent. This study contributes to the audit profession's ability to sustain itself during a decline of RAs.