South African Institute of Chartered Accountants

The South African Institute of Chartered Accountants (SAICA), South Africa’s pre-eminent accountancy body, is widely recognized as one of the world’s accounting institutes.

The Institute provides support services to more than 30 000 members who are Chartered Accountants [CAs(SA)] and hold positions as board directors, chief executive officers (CEOs), chief financial officers (CFOs), managing directors, business owners / entrepreneurs, auditors and leaders in their spheres of business operation. Most of these members operate in commerce and industry, and play a significant role in the nation’s highly dynamic business sector and economic development. SAICA members can use the CA(SA) designation.

SAICA's 2009 survey of the directors of the Johannesburg Stock Exchange’s (JSE) Top 200 companies ranked by market capitalization revealed that 25% of them are CAs(SA). In addition, the survey showed that more than 90% of the Top 200’s chief financial officers hold the coveted designation while 22% of the CEOs also hold the designation.

SAICA claims to serve the interests not only of the chartered accountancy profession, but also of society in general through its key objective of upholding professional standards and integrity.

Regional Representation

SAICA is constituted of four local regional offices as well as two international representative offices, which serve members based in those respective regions. The regions are as follows;

Northern Region (Gauteng, Mpumalanga and Limpopo provinces);
Eastern Region (KwaZulu-Natal province);
Southern Region (Western Cape and Eastern Cape provinces);
Central Region (Free State, North West and Northern Cape provinces);
SAICA Australia; and
SAICA United Kingdom (UK).

Ethics and Professional Behaviour

Members of SAICA are subjected to a Code of Professional Conduct, which provides guidelines for ethical and professional behaviour. Fundamental ethical principles to which CAs(SA) are expected to achieve include:

Integrity;
Objectivity;
Professional Competence and Due Care;
Confidentiality; and
Professional Behaviour.

International Involvement

SAICA members serve on international accounting bodies including; the trustees of the International Financial Reporting Standards

International Financial Reporting Standards

International Financial Reporting Standards are principles-based standards, interpretations and the framework adopted by the International Accounting Standards Board ....

Foundation (IFRS Foundation), the International Accounting Standards Board

International Accounting Standards Board

The International Accounting Standards Board is an independent, privately funded accounting standard-setter based in London, England.The IASB was founded on April 1, 2001 as the successor to the International Accounting Standards Committee...

(IASB), the International Financial Reporting Interpretations Committee (IFRIC) and the Council of the International Federation of Accountants

International Federation of Accountants

International Federation of Accountants is the global organization for the accountancy profession. IFAC has 164 member and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants employed in public practice, industry and commerce, government, and academe...

(IFAC).

International contact and co-operation is fundamental to the standing and image of SAICA. Hence, the institute plays an influential role in the Eastern, Central & Southern African Federation of Accountants (ECSAFA). ECSAFA coordinates the development of the accountancy profession and promotes internationally recognised standards of professional competence and conduct in Eastern, Central and Southern Africa.
SAICA was a charter member of the Pan African Federation of Accountants

Pan African Federation of Accountants

The Pan African Federation of Accountants is the regional body that is aimed to represent African professional accountants with one and louder voice, particularly in relating with International Federation of Accountants...

, which was inaugurated on 5 May 2011.

SAICA is also a member of the Global Accounting Alliance

Global Accounting Alliance

The Global Accounting Alliance is an international coalition of accounting bodies that was formed in 2006.The GAA aims to promote quality professional services, support their members globally and share information and collaborate on international accounting issues...

(GAA) – an alliance of the world’s leading professional accountancy bodies, which was formed in 2005. The GAA is intended to promote quality services, share information and collaborate on important international issues. It works with national regulators, governments and stakeholders, through member-body collaboration, articulation of consensus views, and working in collaboration, where possible with other international bodies, especially IFAC.

History

The first professional institute for accountant

Accountant

An accountant is a practitioner of accountancy or accounting , which is the measurement, disclosure or provision of assurance about financial information that helps managers, investors, tax authorities and others make decisions about allocating resources.The Big Four auditors are the largest...

s in South Africa

South Africa

The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...

was the Institute of Accountants and Auditors, formed in the South African Republic in 1894 with a mere 65 members. A year later the Institute of Accountants in Natal was established. The need to regulate the profession lead to the further establishment of various provincial institutes.In a move towards standardization, the first articles of clerkship were instituted in 1905 and the first journal was published in 1909. Although it did not become a regular publication till 1954, the journal was the sole communication vehicle aimed directly at members and indicated a need for unification. From the earliest times attempts were made to form a national body. The first meaningful step took place on 6 May 1921 when the South African Accounting Societies' General Examining Board was formed to conduct the examination process on behalf of the societies. The second major milestone on the road to unification occurred in 1927, when the Chartered Accountants Designation (Private) Act was passed by parliament. The Act provided protection for the CA(SA) allowing only members of the then provincial societies to use it.

But world and local politics at the time hampered efforts towards forming a national body and it was only in 1945 that the Joint Council of the Societies of Chartered Accountants (SA), which provided a forum for co-operation between the societies, was formed.

In 1950 all theoretical teaching and examining was handed over to universities, but the profession retained the right to set the qualifying examination. The first CTA examinations were held in 1951. The Public Accountants and Auditors Act was also promulgated in 1951 and it brought into place the regulation of accountants and auditors in public practice. The General Examining Board continued to set the qualifying examination until 1957 when it was taken over by the Public Accountants' and Auditors' Board (PAAB).

In 1966 The National Council of Chartered Accountants came into being with its own small secretariat – a further step in the process for unification which was finally achieved in 1980 when the South African Institute of Chartered Accountants was formed with 9012 members.

1973 saw the enactment of a new Companies Act and with it the requirement of companies to present financial statements in accordance with generally accepted accounting practice. The profession, together with chambers of commerce and the Johannesburg Stock Exchange, formed the Accounting Practices Board to issue statements of Generally Accepted Accounting Practice.

An era of change
With the beginnings of globalization, the profession internationally felt the need to work more closely together. This led to the creation of IFAC in 1977 and South Africa was one of the founder members. Although the first woman CA(SA), Miss Elizabeth Kruger, qualified in 1917, it was not until 1977 that Wiseman Nkuhlu was admitted as the first black African CA(SA).

The 1980s proved to be an era of change. While SAICA established numerous committees to improve its service to members and to set standards, the profession recognised the need to open the doors to more black and female CAs(SA). A committee, under the chairmanship of Brian Hawksworth, began to promote this initiative. In 1987 the CAs' Eden Trust came into being as a joint effort between SAICA, the PAAB and the Association for the Advancement of Black Accountants (ABASA) to provide bursaries and grow the number of black CAs(SA). The Eden Trust assisted over 100 black accountants to qualify. In 2002 its name was changed to the Thuthuka Bursary Fund and it was fully incorporated into the institute's transformation and growth strategy.

In 1999 SAICA took over the role of setting the Part 1 of the Qualifying Examination (QE I) from the PAAB (the predecessor of the IRBA), while the PAAB took over the responsibility for setting auditing standards, and with this came more clearly defined roles for both bodies.

The future

The profession began a long process to revise the PAA Act in the early 1990s and this process will came to fruition in 2005 when the Auditing Profession Act (Act 26 of 2005) was promulgated (the Act commenced on the 1st of April 2006). The process has been upset by a spate of international and local corporate failures, with the result that governments worldwide saw the need for regulation of auditors to be tightened up and became more involved in the process.

Another issue that still requires the profession and SAICA's contribution is that of Transformation. The Thuthuka project, an initiative by SAICA to promote skills development and transformation in the CA profession, was launched in the Eastern Cape in 2002 and it was expanded to Limpopo and Kwazulu-Natal in 2004. This programme is providing education support to African learners and students, and seeks to uplift communities while benefiting the CA profession. To regulate SAICA’s efforts going forward, the Institute has now implemented a system whereby leadership issues are identified by the SAICA Board and delegated to the secretariat, so that each day SAICA adds a little more to its history.

Confusion often arises regarding the differing roles and responsibilities of SAICA and the IRBA [previously the Public Accountants and Auditors Board (PAAB)]. It is important to understand the roles of the two bodies.

SAICA is a non-profit, voluntary body that provides a wide range of services to its members and associates. It is controlled by a Board, elected by members through regional committees, and by bodies representing the Institute's other key constituencies such as members in business (commerce and industry), large practices, small practices and ABASA. The IRBA is the statutory body controlling that part of the accountancy profession involved with public accountancy in the Republic of South Africa.

It is important to stress that all entrants to the accountancy profession are subject to consistent requirements. Following qualification, chartered accountants entering public practice are required to register with the IRBA, whilst keeping their SAICA membership, and are governed by its regulations. Those qualified chartered accountants practicing outside of public practice are not subject to the jurisdiction of the IRBA, but are subject to the jurisdiction of SAICA. The IRBA functions in terms of the Auditing Profession Act, 2005 (Act 26 of 2005). Its members are appointed by the Minister of Finance and not more than 40% of the members of the IRBA Board may be registered auditors.

The IRBA is partly funded by fees and levies payable by registered auditors and partly by the National Treasury. The IRBA reports annually to the Minister of Finance, who then tables the report in Parliament.

The mission statements of the two bodies highlight their differences. SAICA's mission is to serve the interests of the CA profession and society, by upholding professional standards and integrity, and the pre-eminence of South African CAs nationally and internationally.

The mission of the IRBA, on the other hand, is to protect the financial interest of the South African public and international investors in South Africa, through the effective regulation of audits conducted by registered auditors and accountants, and in accordance with internationally recognised standards and processes. This is achieved by providing the means and the regulatory framework for the education and training of adequate numbers of competent and disciplined accountants and auditors, to serve the needs of South Africa. The Board strives constantly towards the maintenance and improvement of standards of registered auditors. It protects the public who rely on the services of registered auditors and supports registered auditors who carry out their duties competently, fearlessly and in good faith.

In order to ensure that all members, associates and trainees comply with the high professional standards set, SAICA provides technical support, continuing professional development (lifelong learning), disseminates and communicates the latest information on technical developments and business trends to its constituencies.

One of SAICA's major objectives is to ensure that membership of the accountancy profession better reflects the population demographics of South Africa. To this end, the Institute has a number of initiatives in place designed to increase the number of CAs(SA) from previously disadvantaged communities.

The responsibility for training prospective CAs(SA) is a shared one. SAICA is responsible for the registration of trainees and management of their training contracts, either in public practice or outside public practice. Trainees who do not wish to follow the public practice route may specialise in financial management. The Institute sets and adjudicates the Part I (QE 1) and the Part II in financial management examination (QE 2), for those trainees who have opted to take the financial management route. The IRBA exercises a monitoring role over the SAICA public practice training and QE I examination processes.

The IRBA is also responsible for setting and marking the Public Practice Examination (PPE) for those trainees choosing the public practice route. Trainees may only write QE 1 or PPE after they have passed QE 1 and upon the completion of a minimum of 18 months of a three year training contract. After completing their training contract and passing both QE 1 and QE 2 or PPE, candidates are required to register with SAICA in order to use the prestigious Chartered Accountant [CA(SA)] designation.

The IRBA conducts practice reviews, investigations and disciplinary processes for registered auditors and accountants. Generally, an individual registered with the IRBA is also a CA(SA) registered with SAICA and therefore must comply with the Codes of Professional Conduct of both bodies. According to the Constitution and By-laws of SAICA, any alleged misconduct by a person who is a member of both bodies is dealt with by the IRBA, in the first instance. SAICA accepts the findings of the IRBA disciplinary process and imposes its own disciplinary sentences on those found guilty. Disciplinary matters relating to members not registered with the IRBA, and associates, are dealt with by the SAICA ethics and disciplinary process.

Mission

The mission of SAICA is to serve the interests of the chartered accountancy profession and society, by upholding professional standards and integrity, and the pre-eminence of South African CAs nationally and internationally, by:

Delivering competent entry – level members
Providing services to the members to maintain and enhance their professional competence thereby enabling them to create value for their clients and employers
Enhancing the quality and information used in the private and public sectors for measuring and enhancing organizational performance
Running and facilitating programmes to transform the profession and to facilitate community upliftment
Fulfulling a leadership role regarding relevant business-related issues and providing reliable and respected public commentary

CA (SA) - The Chartered Accountant

See also Chartered Accountant: South Africa

Members of SAICA are entitled to use the highly regarded and prestigious designation CA(SA) after their names. The designation is associated with someone who has considerable expertise in the theory and practice of accountancy. The requirements for qualification as a Chartered Accountant are:

Education:
- Obtain a Bachelor of Accounting
  Bachelor of Accountancy
  The degree of Bachelor of Accountancy is the principal academic degree in accountancy in several countries, and is often the only degree recognised for subsequent practice; see First professional degree. It is abbreviated B.Acy. or B.Acc. or B. Accty....
  
  (B.Acc/B.Acc.Sci/B.Rek/B.Compt), or a specialised Bachelor of Commerce
  Bachelor of Commerce
  A Bachelor of Commerce is an undergraduate degree in commerce and related subjects. The degree is also known as the Bachelor of Commerce and Administration, or BCA...
  
  or Bachelor of Business Science
  Bachelor of Business Science
  The Bachelor of Business Science is a four year Honours level degree providing for a scientifically based study of economic and management sciences. The degree is offered in South Africa, and elsewhere in the Commonwealth.-Structure:...
  
  recognised for this purpose.
- Obtain an additional Honours degree in Accounting.
- Obtain a "Certificate in the Theory of Accounting" (CTA) in conjunction with the Honours degree (only awarded if all Honours degree coursses are passed in one sitting).
Completion of a three year training contract ("internship") selecting either of two routes:
- Training Inside Public Practice ("TIPP"): "Articles"
  Articled clerk
  An articled clerk, also known as an articling student, is an apprentice in a professional firm in Commonwealth countries. Generally the term arises in the accountancy profession and in the legal profession. The articled clerk signs a contract, known as "articles of clerkship", committing to a...
  
  with a Registered Training Organisation (RTO), a firm of Chartered Accountants in public practice (such as Deloitte, PKF
  PKF
  PKF is a global network of accountancy firms. Member firms operate under the PKF brand in over 125 countries worldwide. In 2010, PKF International was ranked the 10th largest global accounting network, with aggregate fee income of $2.4 billion for member firms in the year end June 2010)...
  
  , PriceWaterhouseCoopers
  PricewaterhouseCoopers
  PricewaterhouseCoopers is a global professional services firm headquartered in London, United Kingdom. It is the world's largest professional services firm measured by revenues and one of the "Big Four" accountancy firms....
  
  , KPMG
  KPMG
  KPMG is one of the largest professional services networks in the world and one of the Big Four auditors, along with Deloitte, Ernst & Young and PwC. Its global headquarters is located in Amstelveen, Netherlands....
  
  , or Ernst & Young
  Ernst & Young
  Ernst & Young is one of the largest professional services networks in the world and one of the "Big Four" accountancy firms, along with Deloitte, KPMG and PricewaterhouseCoopers ....
  
  );
- Training Outside Public Practice ("TOPP"): "Articles" with an Approved Training Organisation (ATO) in commerce and industry, typically at a large bank or corporate (excludes practice as an auditor).
Pass, in sequence, the two "board examinations" set by the IRBA. The Qualifying Examination (QE) has two parts, and the second may only be written after passing Part 1 and after the candidate has undergone at least 18 months' training:
- the first in accountancy, auditing, tax and financial management;
- the second in auditing for TIPP candidates, and in financial management
  Managerial finance
  Managerial finance is the branch of finance that concerns itself with the managerial significance of finance techniques. It is focused on assessment rather than technique....
  
  for TOPP candidates.

AGA (SA) - The Associate General Accountant

AGAs operate in a broad range of varied work activities, most of which are complex and non-routine.

Core areas include:

Financial accounting and reporting
Managerial accounting and financial management
Taxation
Auditing, with specific reference to systems, internal auditing functions, internal control and corporate governance
Information technology

AAT (SA) - The Associate Accounting Technician

The range of an AAT's work will vary widely.

Generally AATs work in support positions and some of their key functions include:

Purchase accounting
Inventory control
Payroll accounting
Costing and budgeting
Sales accounting and credit control
Cash and banking
Ledger accounts and the preparation of accounts

AAT trainees are required to complete a training contract of at least two years and must pass an examination before they are entitled to use the AAT (SA) designation.

CPA

A South African Chartered Accountant, or CA(SA), is the equivalent of a United States CPA (Certified Public Accountant

Certified Public Accountant

Certified Public Accountant is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA...

). However, the CPA designation also exists in South Africa. This qualification was previously designated CFA (Certified Financial Accountant). South African CPAs perform only accounting and tax work, usually for smaller entities, and may not perform auditing work.

A recent legal battle between SAICA and the CPA governing body: SAICA requested that the CPA designation be changed back to CFA (Certified Financial Accountant) because the "CPA" designation might create confusion to Americans who might believe that CPAs can act as auditors. Using the term CPA is also a contravention of the Audit Profession Act which states that only CAs may use the term "Public Accountant" or "Registered Auditor."

The eventual outcome of this dispute was that the CPA governing body changed its name to SAIPA, the South African Institute of Professional Accountants

South African Institute of Professional Accountants

The South African Institute of Professional Accountants is a professional association of accountants based in South Africa. The institute had more than 6000 members as of 2011.-Qualification:...

, and its members designation changed to Professional Accountant (SA) without a corresponding acronym.

The requirements to earn the designation are:http://www.saipa.co.za/DisplayContent.asp?ContentPageID=261

Academic: A Degree with a major
Academic major
In the United States and Canada, an academic major or major concentration is the academic discipline to which an undergraduate student formally commits....

in financial accounting and with tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...

, management accounting
Management accounting
Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control...

, auditing and commercial law
Commercial law
Commercial law is the body of law that governs business and commercial transactions...

as subjects.
Practical training or experience: at least 3 years under a SAIPA recognised Learnership, or 6 years of relevant verifiable experience.
SAIPA Professional Evaluation: This is a three hour examination offered twice yearly covering http://www.saipa.co.za/documents/SAIPA%20PE%20Learner%20Guide%20-TD01-V2.pdf Financial Accounting, Auditing, Taxation, Commercial Law, Management Accounting and Practice Management.

External links

The South African Institute of Chartered Accountants official website
The Independent Regulatory Board for Auditors official website