The Independent Regulatory Board for Auditors (Irba) has confirmed that a notice of a reportable irregularity has been filed with it in the last week regarding suspicions of fraud in relation to the accounts of Steinhoff.
This is notable because a reportable irregularity (IR) is filed by an auditor of a company in the event where an “unlawful act or omission” committed by an executive in charge of an entity that has caused, or will cause “material financial loss” to the company, including other providers of capital.
It can also be filed for more serious breaches, including events that are fraudulent or amount to theft, as well as for material breaches of fiduciary duty by those in positions of responsibility.
“The Irba recently received an RI related to the recent news reports regarding Steinhoff. In accordance with the process, this is a first RI. In terms of the process the auditor has 30 days to engage with the client and revert,” said Irba in response to questions from Moneyweb.
Deloitte is the registered auditor of the Steinhoff holding company. At the very least it confirms what has already been suggested.