SOUTH Africa's decision to adopt international auditing standards as early as 2005 is certainly delivering benefits, as it has maintained a top spot for the second year in a row in the World Economic Forum's (WEF) Global Competitiveness Report.
The report, which is conducted annually, has ranked South Africa number one out of 139 economies in both 2009-2010 and 2010-2011 for the strength of its auditing and reporting standards, regarding company financial performance.
This was an impressive move up from second place in 2009 and fourth place in 2008.
"In a world still reeling from credit and Eurozone crises, achieving such a prestigious ranking consecutively for two years is good news for foreign organisations looking to invest in South Africa," CEO of the Independent Regulatory Board for Auditors (IRBA), Bernard Agulhas, says.
"Foreign and local investors will have more confidence in the integrity of the country's auditing and financial reporting standards and increased investment indirectly leads to more employment," he says.
The WEF's Global Competitiveness Report examines various factors that enable economies to achieve sustained economic growth and long-term prosperity.
"While we are proud to have earned the respect of the international community, we are equally glad this achievement will contribute to a sustainable South Africa," Agulhas says.
"The ranking sends a clear message to government, business, financial institutions and investors that, despite the many challenges faced by our country, SA is certainly a preferred place to do business.
"It gives us the upper hand if the international community recognises SA as a respected player in the global financial markets."
He emphasised that the IRBA needed to work hard to maintain this credible position.
Agulhas added that South Africa had an important role to play in supporting other countries on the African continent to improve standards and governance, so that Africa as a whole, could become a respected player in the global finance and reporting markets.
SA's auditing standards improve in rankings
SOUTH Africa's decision to adopt international auditing standards as early as 2005 is certainly delivering benefits, as it has maintained a top spot for the second year in a row in the World Economic Forum's (WEF) Global Competitiveness Report.
The report, which is conducted annually, has ranked South Africa number one out of 139 economies in both 2009-2010 and 2010-2011 for the strength of its auditing and reporting standards, regarding company financial performance.
This was an impressive move up from second place in 2009 and fourth place in 2008.
"In a world still reeling from credit and Eurozone crises, achieving such a prestigious ranking consecutively for two years is good news for foreign organisations looking to invest in South Africa," CEO of the Independent Regulatory Board for Auditors (IRBA), Bernard Agulhas, says.
"Foreign and local investors will have more confidence in the integrity of the country's auditing and financial reporting standards and increased investment indirectly leads to more employment," he says.
The WEF's Global Competitiveness Report examines various factors that enable economies to achieve sustained economic growth and long-term prosperity.
"While we are proud to have earned the respect of the international community, we are equally glad this achievement will contribute to a sustainable South Africa," Agulhas says.
"The ranking sends a clear message to government, business, financial institutions and investors that, despite the many challenges faced by our country, SA is certainly a preferred place to do business.
"It gives us the upper hand if the international community recognises SA as a respected player in the global financial markets."
He emphasised that the IRBA needed to work hard to maintain this credible position.
Agulhas added that South Africa had an important role to play in supporting other countries on the African continent to improve standards and governance, so that Africa as a whole, could become a respected player in the global finance and reporting markets.
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Latest Videos