HOW WE CREATE VALUE

Standards

AUDIT AND ASSURANCE

AUDIT REFORM AND RESTORING TRUST IN THE AUDITING PROFESSION

KEY INITIATIVES
  • The auditing profession plays a crucial role in ensuring the stability of the financial market system and attracting investments to the country.
  • Transparent and accurate financial reporting is essential for investors to make informed decisions on how to allocate their investments. This is even more important for a developing country like South Africa.
  • SAICA hosted four audit reform events in 2023 focusing on topics that will shape the future of the profession. These include:
    • The impact of digital technologies on the profession, including artificial intelligence
    • How auditors can play a more meaningful role in detecting fraud
    • Promoting the attractiveness of the profession
  • Discussions on the establishment of the Centre of Audit Quality (CAQ) have advanced within the SAICA structures
  • SAICA is currently working through various proposals to ensure that all risks associated with establishing such an entity under its structure are addressed
IMPACT/DIFFERENCE MADE
  • In the 2023 Edelman Survey, trust in South Africa’s auditing profession was ranked number one amongst leading institutes in the world
  • SAICA identified members from its structures and firms throughout South Africa within the assurance constituency and profiled the incredible work that they are doing in order to create exposure about the importance of the profession in the wider financial reporting ecosystem
  • The key objective and purpose of the CAQ is to produce thought leadership and research and to advocate for views that will advance confidence in South Africa’s auditing profession. Enhancing trust in the auditing profession will play an important role in strengthening the capital markets by ensuring that local entities are able to meet the increasing expectations of investors and other stakeholders. The CAQ will contribute the perspectives of the South African auditing profession to advance the discussion on issues relating to audit quality and trust in the capital markets

ADVOCACY ON BEHALF OF MEMBERS

KEY INITIATIVES
  • SAICA made various submissions to the IAASB, IRBA and other local regulators
  • A key submission was on the need to ease the regulatory burden on small businesses in South Africa. This was in response to the proposed Companies Amendment Bill where SAICA made written and oral submissions to Parliament. Amongst SAICA’s proposals was the need for the Companies Act to consider a review and increase of the public interest (PI) score as well as to reduce the regulatory requirements for companies who volunteer to have audits
IMPACT/DIFFERENCE MADE
  • The parliamentary legal advisor, in response to the submissions made on the Companies Amendment Bill, stated that the comments received on the PI score needing to be increased would be addressed in the Companies Regulations

CORPORATE REPORTING

ENHANCE THE ROLE OF THE ACCOUNTANCY PROFESSION IN SUSTAINABILITY MATTERS

KEY INITIATIVES
  • Conducted research to assess the state of readiness to adopt the ISSB IFRS Sustainability Disclosure Standards and to understand member needs
  • Hosted the launch of the ISSB IFRS Sustainability Disclosure Standards which was attended by various stakeholders including the ISSB board members and technical staff as well as local regulators
  • Hosted SAICA’s inaugural Climate Change Conference
IMPACT/DIFFERENCE MADE
  • The Sustainability Technical Committee considered a list of Q&As to assist members in navigating the sustainability reporting landscape
  • Collaborations with global accounting bodies including under the Chartered Accountants Worldwide umbrella to influence the global sustainability reporting landscape
  • Engaging and contributing to the global project on sustainability assurance
  • Attended workshops that will shape the future of sustainability reporting

ACCOUNTING FOR INSURANCE CONTRACTS

KEY INITIATIVES
  • Ongoing engagements via the working groups on IFRS 17 Insurance Contracts on practicalities of the standard
  • Collaborated with IFRS 17 experts to gain a diverse range of insights and perspectives
  • Created an IFRS 17 portal on the SAICA website with relevant IFRS 17 practical resources
IMPACT/DIFFERENCE MADE
  • Prepares members and auditors alike to have a dedicated and comprehensive page with relevant local and international support material to assist with IFRS 17

POST-IMPLEMENTATION REVIEWS OF MAJOR IFRS STANDARDS

KEY INITIATIVES
  • Contributions made to the post-implementation reviews of the financial instruments (IFRS 9) and revenue from contracts with customers (IFRS 15) standards.
IMPACT/DIFFERENCE MADE
  • Improved understanding of IFRS standards to develop guidance and training materials for members while enhancing the relevance of these significant standards

The below table of local and international forums and bodies are merely examples of the reach of the Standards division and its members who partake to represent the SAICA membership and its views. It is not a complete list.

LOCAL AND INTERNATIONAL FORUMS AND BODIES

LOCAL BODIES
  • SARS-recognised Controlling Body Forum − SAICA chairs this forum
  • SARB Financial Surveillance Exchange Control Project Group
  • Specialist Committee on Company law
  • eXtensible Business Reporting Language (XBRL (SA)) NPC − Local jurisdiction of XBRL International
  • IRBA – Committee for Auditing Standards (CFAS)
INTERNATIONAL BODIES
  • ESG Exchange Technical Committee
  • Global Accounting Alliance (GAA)
  • International Accounting Standards Board (IASB)
  • IASB Emerging Economies Group (EEG) − South Africa and SAICA representative
  • IASB’s SME Implementation Group (SMEIG)
  • International Financial Reporting Standards (IFRS) Advisory Council
  • IFRS Interpretations Committee
  • International Auditing and Assurance Board (IAASB)
  • International Ethics Standards Board for Accountants (IESBA)
  • International Federation of Accountants (IFAC)
  • International Fiscal Association (IFA)
  • International Public Sector Accounting Board
  • International Valuation Standards Council (IVSC)
  • Pan African Federation of Accountants (PAFA)
  • The Chartered Institute of Public Finance and Accountancy
  • International Connectivity Council
LEARNING, DEVELOPMENT AND NATIONAL IMPERATIVES

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