MATERIALITY DETERMINATION

PROCESS AND MATERIAL MATTERS

MATERIALITY DETERMINATION PROCESS AND MATERIAL MATTERS

LEGEND:

Worsening

Improving

Stable

LEGEND:

Worsening

Improving

Stable

6. INCREASING REGULATORY REQUIREMENTS

RISKS AND OPPORTUNITIES

IMPACT

  • Reporting pressures internally, to board structures and to regulators and complying with ever-growing requirements from SARS/IRBA/CIPC place a huge administrative burden on the team, with negative impacts on morale and culture as well as the ability to perform our core activities
  • The increasing regulatory burden placed on professional bodies in general, and SAICA in particular, continues to be a cause for concern, as it may be unsustainable in the future

RISKS

  • Increased pressure on SAICA and its members
  • Challenges in capacity to meet increasing regulatory requirements
  • Negative impact on relationships with regulators
  • Increasing outsourcing of some of the regulatory functions by statutory regulators to the professional bodies will have resource and reputational implications

RELATED OPPORTUNITIES

  • Assist members with the application of revised standards and regulations
  • Continue to advocate for regulatory changes that will achieve their objectives without undue burden on the membership and the profession

capitals

strategic pillars

 6. INCREASING REGULATORY REQUIREMENTS

  • Reporting pressures internally, to board structures and to regulators and complying with ever-growing requirements from SARS/IRBA/CIPC place a huge administrative burden on the team, with negative impacts on morale and culture as well as the ability to perform our core activities
  • The increasing regulatory burden placed on professional bodies in general, and SAICA in particular, continues to be a cause for concern, as it may be unsustainable in the future

RISKS AND OPPORTUNITIES

RISKS

  • Increased pressure on SAICA and its members
  • Challenges in capacity to meet increasing regulatory requirements
  • Negative impact on relationships with regulators
  • Increasing outsourcing of some of the regulatory functions by statutory regulators to the professional bodies will have resource and reputational implications

RELATED OPPORTUNITIES

  • Assist members with the application of revised standards and regulations
  • Continue to advocate for regulatory changes that will achieve their objectives without undue burden on the membership and the profession

IMPACT

capitals

strategic pillars

Strategic response

  • Technical support to members
  • SME support in terms of implementing regulations and standards
  • Representation on the global standard-setting stage
  • Engagement on IFRS changes

  • Support for members on new standards in the insurance space through established working groups

Strategic response

  • Technical support to members
  • SME support in terms of implementing regulations and standards
  • Representation on the global standard-setting stage
  • Engagement on IFRS changes

  • Support for members on new standards in the insurance space through established working groups

Outlook for the short, medium and long term

  • SAICA maintains ongoing communication with various regulators (eg SARS, IRBA, CIPC) to find a balance that satisfies the regulators’ expectations for performance in these areas while minimising the compliance burden on the Institute and its members. As a membership organisation, SAICA prioritises serving its members’ interests and fulfilling its public duty, and thus aims to effectively reconcile the demands of the regulators with the needs of its members

Outlook for the short, medium and long term

  • SAICA maintains ongoing communication with various regulators (eg SARS, IRBA, CIPC) to find a balance that satisfies the regulators’ expectations for performance in these areas while minimising the compliance burden on the Institute and its members. As a membership organisation, SAICA prioritises serving its members’ interests and fulfilling its public duty, and thus aims to effectively reconcile the demands of the regulators with the needs of its members

 7. DISCIPLINARY MATTERS AND BY-LAWS

RISKS AND OPPORTUNITIES

IMPACT

  • Scrutiny of the ethics and integrity of the accountancy profession has increased in recent years due to the increasing complexity of financial regulation and the increasingly global nature of the profession. Stricter laws and regulations have been implemented to ensure that accountants adhere to ethical standards and comply with applicable laws and regulations. Additionally, the increased prevalence of accounting scandals has led to increased public scrutiny of the profession and its practitioners

  • SAICA has disciplinary guidelines and procedures in place to address misconduct by its members and uphold the integrity of the accountancy profession

RISKS

  • Damage to the reputation and trust of the profession if members are found guilty of misconduct
  • Legal and regulatory action and financial liability for imposed fines
  • Disciplinary measures such as suspension or expulsion from professional bodies
  • Loss of professional status and recognition, including potential loss of licence

RELATED OPPORTUNITIES

  • Promotion of the consolidated trust reconstruction programme
  • Advocate for high-quality ethical standards
  • Alignment of the SAICA Code to international standards

capitals

strategic pillars

 7. DISCIPLINARY MATTERS AND BY-LAWS

  • Scrutiny of the ethics and integrity of the accountancy profession has increased in recent years due to the increasing complexity of financial regulation and the increasingly global nature of the profession. Stricter laws and regulations have been implemented to ensure that accountants adhere to ethical standards and comply with applicable laws and regulations. Additionally, the increased prevalence of accounting scandals has led to increased public scrutiny of the profession and its practitioners

  • SAICA has disciplinary guidelines and procedures in place to address misconduct by its members and uphold the integrity of the accountancy profession

RISKS AND OPPORTUNITIES

RISKS

  • Damage to the reputation and trust of the profession if members are found guilty of misconduct
  • Legal and regulatory action and financial liability for imposed fines
  • Disciplinary measures such as suspension or expulsion from professional bodies
  • Loss of professional status and recognition, including potential loss of licence

RELATED OPPORTUNITIES

  • Promotion of the consolidated trust reconstruction programme
  • Advocate for high-quality ethical standards
  • Alignment of the SAICA Code to international standards

IMPACT

capitals

strategic pillars

Strategic response

  • Amendments to the Disciplinary Code of the SAICA by-laws to streamline the disciplinary process
  • Provided clarity on the Disciplinary Code to avoid unnecessary confusion and legal argument
  • SAICA continues to follow up allegations of member involvement in corruption arising from the Zondo Commission report
  • Ethics in Practice Series to improve the relevance and reputation of the profession

Strategic response

  • Amendments to the Disciplinary Code of the SAICA by-laws to streamline the disciplinary process
  • Provided clarity on the Disciplinary Code to avoid unnecessary confusion and legal argument
  • SAICA continues to follow up allegations of member involvement in corruption arising from the Zondo Commission report
  • Ethics in Practice Series to improve the relevance and reputation of the profession

Outlook for the short, medium and long term

  • Delivering on recommendations from the Zondo Commission to SAICA
  • Further capacitating the Discipline Unit to meet the increased number of complaints received
  • Amendments to the Disciplinary Code offers respondents the opportunity to admit guilty and/or to enter into without prejudice settlement discussions with SAICA to expedite the disciplinary process and reduce costs incurred by both parties
  • Collaboration with regulators and law enforcement agencies to provide information to assist in accountability where there has been punishable conduct amounting to contraventions of legislation

Outlook for the short, medium and long term

  • Delivering on recommendations from the Zondo Commission to SAICA
  • Further capacitating the Discipline Unit to meet the increased number of complaints received
  • Amendments to the Disciplinary Code offers respondents the opportunity to admit guilty and/or to enter into without prejudice settlement discussions with SAICA to expedite the disciplinary process and reduce costs incurred by both parties
  • Collaboration with regulators and law enforcement agencies to provide information to assist in accountability where there has been punishable conduct amounting to contraventions of legislation

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SAICA Integrated Report 2022.
All Rights Reserved.

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SAICA Integrated Report 2022. All Rights Reserved.

Site Links

Site Links

Head Office