CIRCULAR 1/2025/26 – GUIDELINE ON FEES FOR AUDITS PERFORMED BY PRIVATE FIRMS ON BEHALF OF THE AUDITOR GENERAL OF SOUTH AFRICA (AGSA)
Introduction
- The work done by the Audit-General of South Africa (AGSA) is governed by legal prescripts of the Republic of South Africa. Section 188 of the Constitution of the Republic of South Africa (1996), mandates to the AGSA to audit and report on the accounts, financial statements and financial management of national and provincial departments, national and provincial administrations, all municipalities and any other institution or accounting entity required by national or provincial legislation to be audited by the AGSA. This mandate is further described in sections 4 and 5 of the Public Audit Act 25 of 2004 (the “PAA).
- The Auditor-General performs his or her functions with the assistance of an administration established in terms of section 30(1) of the PAA. Section 12 of the PAA permits the AGSA to make use of suitably qualified private auditors to perform public sector audits and provide audit related services on behalf of the AGSA.
- Because the AGSA is committed to contributing towards transformation of the accountancy profession, the provisions of section 12 of the PAA enable the AGSA to realize this commitment through building capacity of the private audit firms by outsourcing some of its work.