South Africa’s public sector is at an important turning point with the introduction of the King V code on Corporate Governance for South Africa. Released by the Institute of Directors on October 31, this new code marks a major change in how governance is approached. Its goal is to promote ethical leadership, sustainable value creation, and strong accountability, especially in public organisations.

For auditors and accountants, King V 2025 brings new expectations and responsibilities. It encourages them to take a more active role in governance, consider the bigger picture and engage with all stakeholders.

A new era for public sector governance

The King V Code is based on ethical and effective leadership and focuses on four main goals, which are:

1. building an ethical culture, creating value
2. improving performance,
3. ensuring proper controls
4. maintaining legitimacy.

These goals are not just ideals, they are the standards used to judge governance in every public institution.

King V 2025 is outcomes-based. This means public sector organisations cannot say they have good governance just by following recommended practices. True success is measured by whether these governance goals are actually achieved. This is especially important in the public sector, where managing public resources, delivering services and making a positive societal impact are closely watched.

What changes for the public sector in terms of principles and practices?

King V 2025 and its applicability to the public sector

King V 2025 states that its principles apply to all organisations, no matter their size or type. However, it also recognises that public sector entities should adjust these principles to fit their specific roles, operations and impact on society. This flexibility is important for government departments, state-owned enterprises and municipalities, which work in different environments and face unique governance challenges.

Integrated thinking and sustainable development

A key principle of King V 2025 is integrated thinking, which encourages public sector leaders to consider how economic, social and environmental factors are connected. This approach helps the public sector create lasting value for citizens by balancing short-term service delivery with long-term social well-being. As a result, auditors and accountants need to look beyond financial results to assess non-financial impacts and the quality of integrated reporting.

Stakeholder inclusivity and Ubuntu-Botho

King V 2025 highlights stakeholder inclusivity, grounded in the Ubuntu-Botho philosophy. Public sector organisations are encouraged to engage meaningfully with all stakeholders, including citizens, employees, suppliers and communities, ensuring that governance decisions reflect their interests, rights and needs. For auditors, this entails evaluating not only compliance and performance but also the quality of stakeholder engagement and the legitimacy of organisational actions.

Implications for Auditors and Accountants in the public sector

Enhanced Assurance in King V 2025

King V 2025 places renewed emphasis on both internal and external assurance. Auditors are expected to provide oversight across a wider spectrum of organisational activities, including ethics management, risk governance, compliance, data and information management and stakeholder relationships. This broader mandate calls for auditors and accountants to develop new competencies and to work closely with governing bodies and management to ensure robust and credible assurance.

Enhanced role in ethical leadership and accountability

King V 2025 underscores a strengthened focus on both internal and external assurance. Auditors are now expected to oversee a broader array of organisational activities, spanning ethics management, risk governance, compliance, data and information management, and stakeholder relationships. This expanded mandate requires auditors and accountants to cultivate new skills and collaborate closely with governing bodies and management, ensuring that assurance is both robust and credible.

Combined Assurance and integrated reporting

King V 2025 supports a combined assurance approach, bringing together line management, specialist teams, internal auditors, and external assurance providers. Auditors and accountants need to make sure these efforts cover all significant risks and protect the accuracy of external reports. Integrated reporting, based on integrated thinking, is a key result of this approach, so assurance professionals must review both financial and non-financial information.

Capacity building and professional development

Moving to King V 2025 will require continuous learning for public sector auditors and accountants. They need to keep up with changing governance standards, new risks, and best practices in assurance and reporting. Working with professional bodies, training institutions, and regulators will be key to building the skills needed for effective implementation.

King V 2025 and public sector governance

The King V Code for 2025 marks a new era for public sector governance in South Africa. It encourages public entities to go beyond just following rules and focus on ethical leadership, integrated thinking and including all stakeholders to create lasting value. For auditors and accountants, this means developing new skills, understanding governance outcomes better and committing to ongoing learning. By meeting these expectations, assurance professionals can help build public trust, improve accountability and drive positive change in the public sector.