| (1) | The Regulatory Board consists of not less than six but not more than non-executive members appointed by the Minister. |
| (2) | The Minister must appoint competent persons, who are independent of the auditing profession to effectively manage and guide the activities of the Regulatory Board, based on their knowledge and experience. |
[Section 11(2) substituted by section 3(a) of the Auditing Profession Amendment Act, 2021 (Act No. 5 of 2021), Notice No. 228 of GG44493, dated 26 April 2021]
| (2A) | The members appointed in terms of subsection (2) must include— |
| (a) | two persons with at least 10 years’ experience in auditing who were formerly registered as auditors; and |
| (b) | two advocates or attorneys with at least 10 years’ experience in practicing law. |
[Section 11(2A) inserted by section 3(b) of the Auditing Profession Amendment Act, 2021 (Act No. 5 of 2021), Notice No. 228 of GG44493, dated 26 April 2021]
| (3) | When making the appointments, the Minister must take into consideration, amongst other factors— |
| (a) | the need for transparency and representivity within the broader demographics of the South African population; |
| (b) | any nominations received in terms of subsection (5); and |
| (c) | the availability of persons to serve as members of the Regulatory Board. |
| (4) | None of the members appointed in terms of this section may be a registered auditor or registered candidate auditor. |
[Section 11(4) substituted by section 3(c) of the Auditing Profession Amendment Act, 2021 (Act No. 5 of 2021), Notice No. 228 of GG44493, dated 26 April 2021]
| (5) | Before the Minister makes the appointments, the Regulatory Board must, by notice in the Gazette and in any national newspaper, invite nominations from members of the public. |
| (6) | The Minister may appoint an alternate member for every member of the Regulatory Board, and an alternate member may attend and take part in the proceedings at any meeting of the Regulatory Board whenever the member for whom he or she has been appointed as an alternate is absent from that meeting. |
| (7) | The Regulatory Board, as soon as practicable after the appointment of its members, must publish by notice in the Gazette— |
| (a) | the name of every person appointed; |
| (b) | the date from which the appointment takes effect; |
| (c) | the period for which the appointment is made; and |
| (d) | the qualifications of every person appointed. |
[Section 11(7) substituted by section 3(d)(i-iii) of the Auditing Profession Amendment Act, 2021 (Act No. 5 of 2021), Notice No. 228 of GG44493, dated 26 April 2021]
| (a) | share, directly or indirectly, in any of the profits or interests of a registered auditor or any person related to a registered auditor; or |
| (b) | receive payments, excluding pension benefits, from a registered auditor. |
[Section 11(8) inserted by section 3(e) of the Auditing Profession Amendment Act, 2021 (Act No. 5 of 2021), Notice No. 228 of GG44493, dated 26 April 2021]
| (9) | For purposes of subsection (8)(a), ‘related’ means persons who are connected to one another in any manner contemplated in section 2(1)(a) to (c), read with section 2(2), of the Companies Act, 2008 (Act No. 71 of 2008). |
[Section 11(9) inserted by section 3(e) of the Auditing Profession Amendment Act, 2021 (Act No. 5 of 2021), Notice No. 228 of GG44493, dated 26 April 2021]
