The Chartered Accountant Institute of South Africa ( SAICA ), is a professional accounting body in South Africa.
As of August 2013, the institute has over 36,000 members. SAICA provide support, advice, and services to its CA during their professional life. SAICA members are business advisors, business leaders and entrepreneurs. SAICA members may use the appointment of CA (SA).
Video South African Institute of Chartered Accountants
Membership and qualification
To become a student and a member of the South African Institute of Chartered Accountants, candidates must apply for an equivalent Bachelor Degree in Accounting or CA qualification qualification at an accredited SAICA university. After the degree is completed students are required to complete the Certificate in Accounting Theory (CTA). This course focuses on accounting, auditing, taxation and financial management. This course takes a minimum of one year and must be completed at an accredited SAICA university. Upon completion of the CTA, candidates are eligible to enter into 3 years of study with a Registered Training Office (RTO) (to specialize in auditing) or Approved Training Organization (ATO) (to specialize in financial management)
Maps South African Institute of Chartered Accountants
Regional Representation
SAICA consists of four local regional offices as well as two international representative offices, serving its members based in these areas. The area is as follows;
- Northern Region (Gauteng, Mpumalanga and Limpopo provinces);
- Eastern Region (KwaZulu-Natal province);
- Southern Region (Western Cape and Eastern Cape province);
- Central Region (Free State, North West and Northern Cape provinces);
- SAICA Australia;
- SAICA United Kingdom (UK).
International engagement
SAICA members serve in international accounting bodies including; the trustees of the International Financial Reporting Foundation (IFRS Foundation), the International Accounting Standards Board (IASB), the International Financial Reporting Interpretation Committee (IFRIC) and the International Accounting Federation Board (IFAC).
International contact and cooperation are critical to SAICA's position and image. Therefore, it plays an influential role in East, Central & amp; Federation of African Accountants (ECSAFA). ECSAFA co-ordinates the development of the accounting profession and promotes internationally recognized professional competency standards and performs in East, Central and South Africa. SAICA is a charter member of the Pan African Accounting Federation, which was inaugurated on 5 May 2011.
SAICA is also a member of the Global Accounting Alliance (GAA) - an alliance of the world's leading professional accounting bodies, established in 2005. GAA is intended to promote quality services, information sharing and collaboration on important international issues. It works with national regulators, governments and stakeholders, through limb collaboration, articulation of consensus views, and works in collaboration, where possible with other international bodies, especially IFAC.
History
The first professional institution for accountants in South Africa is the Institute of Accountants and Auditors, formed in the Republic of South Africa in Johannesburg in 1894 with 65 members. A year later, the Institute of Accountants at Christmas was founded. The need to set the profession leads to the further establishment of various provincial institutions. In the step toward standardization, the first article of the court registry was instituted in 1905 and the first journal was published in 1909. Although not a regular publication until 1954, journals were the only means of communication directed directly to members and indicated the need for unification. Between 1905 and 1907 the accounting community established Cape Colony naming, The Orange River Colony and Christmas. By the end of 1907, the Transvaal Society of Accountants (representing more than half of registered accountants in South Africa) had grown to 522 members. From the beginning efforts were made to form a national body. The first meaningful step occurred on May 6, 1921, when the General Audit Board of the South African Public Accounting Association was formed to conduct a process of examination on behalf of the public. The second major milestone on the road to unification occurred in 1927, when the Chartered Accountant (Private) Act was passed by parliament. The law provides protection for CA (SA) which allows only members of the provincial community then to use it.
But world and local politics at the time hampered efforts to form a national and new body in 1945, the Joint Council of Public Accounting Associations (SA), which provided a forum for inter-community cooperation, was formed. In 1950 all the teaching and theoretical exams were left to the university, but this profession retained the right to administer the qualifying exam. The first CTA check was conducted in 1951. The Public Accountant and Auditor Act was also enacted in 1951 and it brought the rules of accountants and auditors in public practice. The Supreme Audit Board continued to set a qualifying exam until 1957 when it was taken over by a Public Accountant and Board of Auditors (PAAB).
In 1966 the National Council of Chartered Accountants emerged with its own small secretariat - a further step in the unification process that was finally achieved in 1980 when the Chartered Accountant of South Africa was formed with 9012 members. 1973 saw the entry into force of the new Company Law and hence the requirements of the company to present its financial statements in accordance with generally accepted accounting practices. The profession, together with the Chamber of Commerce and the Johannesburg Stock Exchange, established the Accounting Practice Board to publish the report of Generally Accepted Accounting Practices.
The change era
With the onset of globalization, this profession internationally feels the need to work more closely together. This led to the creation of IFAC in 1977 and South Africa was one of the founding members. Although the first woman CA (SA), Miss Elizabeth Kruger, qualified in 1917, it was not until 1977 that Wiseman Nkuhlu was accepted as the first black African CA (SA).
The 1980s proved to be an era of change. While SAICA formed many committees to improve its services to members and set standards, the profession recognizes the need to open the door for the black CA and women (SA). A committee, under the leadership of Brian Hawksworth, began promoting this initiative. In 1987 CA Eden Trust emerged as a joint effort between SAICA, PAAB and the Association for the Advancement of Black Accountant (ABASA) to provide scholarships and grow the number of black CA (SA). The Eden Trust helps over 100 black accountants to qualify. In 2002 its name was changed to Dana Bursari Thuthuka and fully incorporated into the institutional transformation and growth strategy.
In 1999 SAICA took over the role of establishing Part 1 of the Qualification Examination (QE I) of PAAB (IRBA's precursor), while PAAB took over responsibility for setting auditing standards, and with this a clearer role exists for both bodies.
Future
The profession began a lengthy process to revise the PAA Act in the early 1990s and this process would begin to yield results in 2005 when the Auditing Profession Act (Law 26 of 2005) was announced (Act begins on April 1, 2006). This process has been disrupted by a spate of failures of international and local corporations, with the result that governments around the world see the need for auditor arrangements to be tightened and become more involved in the process. Another problem that still requires SAICA's profession and contribution is Transformation. The Thuthuka Project, an initiative by SAICA to promote skills development and transformation within the CA profession, was launched in the Eastern Cape in 2002 and extended to Limpopo and Kwazulu-Natal in 2004. The program provides educational support to African students and students, to uplift the community while profiting the CA profession. To manage SAICA's future efforts, the Institute has implemented a system in which leadership issues are identified by the SAICA Council and delegated to the secretariat, so every day SAICA adds a little more to its history. Confusion often arises regarding the different roles and responsibilities of SAICA and IRBA [formerly a Public Accountant and Board of Auditors (PAAB)]. It is important to understand the role of two bodies.
SAICA is a non-profit, voluntary body that provides various services to its members and associates. It is controlled by the Council, elected by members through regional committees, and by bodies representing other major constituencies of the Institute such as members in business (commerce and industry), great practice, small practice and ABASA. IRBA is a legal entity that controls part of the accounting profession involved with public accountants in the Republic of South Africa.
It is important to stress that all entrants to the accounting profession are subject to consistent requirements. After qualification, chartered accountants entering public practice are required to register with the IRBA, while maintaining their SAICA membership, and governed by its rules. Qualified, qualified accountants who practice outside of public practice are not subject to the IRBA jurisdiction, but are subject to SAICA jurisdiction. IRBA function in terms of Professional Auditing Law, 2005 (Law 26 year 2005). Its members are appointed by the Minister of Finance and no more than 40% of IRBA Board members can become registered auditors.
IRBA is partially funded by fees and fees paid by registered auditors and partly by the National Treasury. IRBA reports annually to the Minister of Finance, who then reports in Parliament.
The IRBA's mission, on the other hand, is to protect the financial interests of South African public and international investors in South Africa, through effective regulation of audits conducted by auditors and registered accountants, and in accordance with internationally recognized standards and processes. This is achieved by providing the means and regulatory framework for the education and training of a number of competent and disciplined accountants and auditors, to serve the needs of South Africa. The Council strives constantly toward the maintenance and upgrading of the auditor's standards. It protects the public who rely on registered auditor services and supports registered auditors who perform their duties competently, without fear and in good faith.
To ensure that all members, partners and trainees meet high professional standards, SAICA provides technical support, continuous professional development (lifelong learning), disseminates and communicates the latest information on technical developments and business trends to its constituents.
One of SAICA's main goals is to ensure that accounting profession membership better reflects the demographics of the South African population. To this end, the Institute has a number of initiatives designed to increase the number of CA (SA) from previously harmed communities.
The responsibility for training a CA candidate (SA) is what is shared. SAICA is responsible for the registration of trainees and management of their training contracts, whether in public practice or outside of public practice. Trainees who do not want to follow a public practice route can specialize in financial management. The Institute establishes and adjudges Section I (QE 1) and Section II in financial management checks (QE 2), for those who have chosen to take the route of financial management. The IRBA carries out monitoring roles over SAICA's public practice training and QE I review process.
The IRBA is also responsible for establishing and marking the Public Practice Exam (PPE) for those who choose the common practice path. Training participants can only write QE 2 or PPE after they pass QE 1 and after completion of at least 18 months of a three year training contract. After completing their training contract and pass both QE 1 and QE 2 or PPE, candidates are required to register with SAICA to use the Chartered Accountant [CA (SA)] designation.
The IRBA reviews practices, investigations, and disciplinary processes for auditors and registered accountants. Generally, an IRBA-registered individual is also a CA (SA) registered with SAICA and therefore must comply with the Code of Professional Conduct of both bodies. According to SAICA's Constitution and Bylaws, any alleged violation by a person who is a member of both bodies is handled by IRBA, in the first instance. SAICA received the findings of the IRBA discipline process and imposed its own disciplinary punishment on those found guilty. Disciplinary matters relating to members not registered with IRBAs, and partners, are handled by SAICA ethics and disciplinary processes.
South African Design
CA (SA) - Chartered Accountant
- See also Chartered Accountant: South Africa
SAICA members are entitled to use the CA (SA) marking after their name. This appointment is related to someone who has expertise in accounting theory and practice. Requirements for qualification as a Chartered Accountant are:
- Education:
- Obtain a Bachelor degree in Commerce or an equivalent undergraduate qualification (Bachelor of Accountancy) recognized for this purpose.
- Earn an additional graduate honors degree or postgraduate diploma in Accounting.
- Obtain "Certificate in Accounting Theory" (CTA) in conjunction with postgraduate qualification (only available if all courses are passed in one session).
- Completion of a three-year training contract ("internship") selects one of two routes:
- Training in Public Practice ("TIPP"): "Articles" with Registered Training Organizations (RTOs), a Chartered Accounting firm in public practice (such as Deloitte, PKF, PriceWaterhouseCoopers, KPMG or Ernst & Young);
- Outside Public Practice Training ("TOPP"): "Articles" with Approved Training Organizations (ATOs) in commerce and industry, usually in banks or large companies (excluding auditor practices).
- Passed, in sequence, two "board checks" set by the IRBA. The Qualification Exam (QE) has two parts, and the second can only be written after passing Part 1 and after the candidate has served at least 20 months of training:
- first in the areas of accounting, auditing, taxation, and financial management;
- the second is the Professional Competency Assessment that replaces Part II of Financial Management and Public Practice Exam.
AGA (SA) - Associate General Accountant
An AGA (SA) is a highly skilled accountant who has completed the SAICA accredited BCom degree and SAICA accredited training program. AGA operates in a wide variety of work activities, mostly complex and non-routine.
Core areas include:
- Financial accounting and reporting
- Managerial accounting and financial management
- Taxation
- Audit, with specific reference to the system, internal audit function, internal control, and corporate governance
- Information technology
- Payroll accounting.
AAT (SA) - Associate Accounting Technician
AAT qualifications are offered through the Association of Accounting Technicians. The range of AAT work will vary greatly. Generally AAT works in support positions and some of its main functions include:
- Purchase accounting
- Inventory controls
- Payroll accounting
- Costing and budgeting
- Sales accounting and credit control
- Cash and banking
- Account ledger and account preparation
AAT training participants are required to complete a training contract for at least two years and must pass the exam before they are eligible to use the AAT (SA) designation. See The Association of Accounting Technicians Ã,§ In South Africa.
CPA
Chartered Accountant of South Africa, or CA (SA), is equivalent to CPA United States (Certified Public Accountant). However, CPA determination also exists in South Africa. This qualification was previously designated CFA (Certified Financial Accountant). CPA South Africa only does accounting and tax work, usually for smaller entities, and can not perform audit work.
A recent legal dispute between SAICA and the CPA regulatory body: SAICA requested the appointment of the CPA be re-converted into a CFA (Certified Financial Accountant) because the appointment of a "CPA" may create confusion for Americans who may believe that CPA may act as an auditor. The use of the term CPA is also a violation of the Auditing Professional Law stating that only CA can use the term "Public Accountant" or "Registered Auditor".
The end result of this dispute is that the CPA regulatory agency changed its name to SAIPA, the Professional Accounting Institute of South Africa, and the appointment of its members was changed to Professional Accountant (SA) without the appropriate acronym.
The requirements for appointment are:
- Academic: A degree with a major in financial accounting and with tax, management accounting, auditing, and commercial law as a subject.
- Practical training or experience: at least 3 years under a recognized SAIPA as a Student, or 6 years relevant verifiable experience.
- Professional Evaluation SAIPA: This is a three-hour examination offered twice a year that includes financial accounting, auditing, taxation, commercial law, accounting management and practice management.
References
External links
- The African Institute of Chartered Accountants official website
- The Independent Regulatory Board for Auditors' official website
Source of the article : Wikipedia
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