AGSA Reviews External Audit Firm Over Partner Conduct

Deputy Auditor General Bongi Ngoma said the AGSA audit committee responded immediately by holding a special meeting with Crowe's management to evaluate any potential risks arising from the allegations.

The Auditor-General of South Africa (AGSA) has launched a review involving one of its external audit firms after concerns emerged about the conduct of a senior partner at Crowe.

The review follows reports that auditor Gary Kartsounis carried out financial valuation work linked to the acquisition of a stake in Lanseria Holdings in a transaction involving the Public Investment Corporation (PIC) and Acapulco. Those valuations have since come under scrutiny, prompting AGSA to assess whether any risks could affect its own audit processes.

Findings unrelated to AGSA audit work

The matter also follows adverse findings and sanctions issued by the Independent Regulatory Board for Auditors (IRBA) against Kartsounis. According to AGSA, those findings relate to audit files that were not connected to the Auditor-General's work but failed to meet the regulator's required quality standards.

Deputy Auditor General Bongi Ngoma said the AGSA audit committee responded immediately by holding a special meeting with Crowe's management to evaluate any potential risks arising from the allegations.

Although the issues are unrelated to the AGSA audit itself, the committee requested the firm to provide additional assurance that the integrity of the Auditor-General's audit process remains fully protected.

Enhanced safeguards under way

Ngoma said AGSA has introduced stronger oversight measures while its internal assurance and risk assessment processes continue.

She said the institution has a constitutional responsibility to promote good governance across the public sector and must uphold the highest standards within its own operations. For that reason, every aspect of the matter is being carefully examined to ensure public confidence in the organisation remains intact.

Once the review and assurance processes have been completed, the National Audit Office will announce its findings and outline any further action that may be required.

Public confidence remains a priority

AGSA said its audit committee and management are closely monitoring the situation to ensure that its audit work is not compromised and that appropriate safeguards remain in place.

The institution emphasised that the review reflects its commitment to accountability, transparency and strong governance while maintaining the independence and credibility of South Africa's supreme audit institution.