Evaluating the Decline Registered Auditors Will Have on the Future of the Assurance Industry in South Africa

Thameenah Abrahams () and Masibulele Phesa ()
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Thameenah Abrahams: School of Commerce, College of Law and Management Studies, University of KwaZulu-Natal, Durban 4041, South Africa
Masibulele Phesa: School of Commerce, College of Law and Management Studies, University of KwaZulu-Natal, Durban 4041, South Africa

Risks, 2025, vol. 13, issue 9, 1-29

Abstract: Purpose : This article evaluated the decline of registered auditors (RAs) and its impact on the future of the assurance industry in South Africa. Auditors play a critical role in ensuring the transparency, trust, and credibility of financial statements. The decrease in the number of registered auditors has become a pressing issue, raising concerns about the assurance industry’s ability to maintain a sufficient number of registered auditors and continue providing assurance services to public and private entities. Methodology : A qualitative Delphi methodology was employed, involving interviews with RAs who are registered with the Independent Regulatory Board for Auditors (IRBA). Eight RAs participated in structured interviews. This approach enabled the researcher to gather expert opinions, identify emerging trends, and explore challenges and opportunities within the audit profession related to the decline of RAs. Main findings : The decline of RAs is straining client demands, increasing workloads, and leading to a shortage of audit firms, which in turn affects audit quality and methodologies. Audit firms struggle to attract and retain talent due to regulatory burdens, economic pressures, and concerns about work–life balance. These pressures have resulted in higher audit fees, increased compliance costs, and more extensive training requirements. Smaller audit firms are especially impacted, with some downscaling their assurance services or exiting the market entirely. Practical implications : This study underscores the pressing need for regulatory bodies, such as the IRBA, to address the challenges faced by audit firms, particularly in terms of compliance and workforce retention. Proactive strategies are required to preserve the quality and accessibility of assurance services. Contribution : This study contributes to the ongoing discourse on the future of the audit profession by offering grounded insights into how the industry might sustain itself amid a declining number of RAs and changing professional dynamics.

Keywords: assurance; audits; Independent Regulatory Board for Auditors; technology advancements; regulatory challenges (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2025
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