Irba reports Nova to Sars and CIPC
The Nova Property Group may have contravened the Companies Act and tax regulations.
The Independent Regulatory Board for Auditors (Irba) has referred a reportable irregularity (RI), filed by the company’s auditor Nexia SAB&T related to Nova last year, to the South African Revenue Service (Sars) and the Companies and Intellectual Property Commission (CIPC) for investigation.
Moneyweb previously reported that Nexia SAB&T reported a RI to Irba on December 5 last year.
Irba confirmed to Moneyweb that it received a second RI from Nexia SAB&T on January 4, 2020, and that the body onward-reported the matter to CIPC and Sars. Irba did not disclose the nature of the RI, but the mere referral to CIPC and Sars suggests possible transgressions of the Companies Act and tax legislation.
Although the nature of the RI was not disclosed, the Auditing Profession Act states that any RI highlights a potentially unlawful act committed by directors or the management of the company, which may lead to creditors and other stakeholders suffering a “material financial loss”. This may be fraudulent or amount to theft, or represent a material breach of any fiduciary duty.
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