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Materiality determination process and material matters

LEGEND FOR MATERIAL MATTERS

Worsening
improving
stable
New
Worsening
improving
stable
New
5. Increasing regulatory requirements and member expectation gap

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

SAICA faces a delicate balancing act: meeting increasing regulatory demands while fulfilling its core function as a member institute. This potential expectation gap arises from the mismatch between member desires, such as comprehensive compliance guidance and personalised support, and SAICA’s member-facing limitations

Increased pressure on SAICA to meet regulatory requirements and meet member expectations with resource limitations

Risks, opportunities and strategic response
Risks
  • Increased pressure on SAICA and its members
  • Challenges in capacity to meet increasing regulatory requirements
  • Increasing outsourcing of some of the regulatory functions by statutory regulators to professional bodies will have resource and reputational implications
  • Negative impact on relationships with regulators
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
  • SAICA has prioritised stakeholder engagements with the regulators responsible for the legislation relating to anti-money laundering. The primary goal is to keep members informed about developments in this field and to ensure that any guidance provided by regulators is tailored specifically for the accountancy profession. To facilitate this, SAICA has established an anti-money laundering (AML) webpage on its website to keep members updated on the latest developments in this area
  • Launch of a brand-new product series to assist members with compliance-related matters linked to regulatory requirements
  • SAICA collaborated with the Legal Practitioners’ Fidelity Fund (LPFF) to create an agreed-upon procedures (AUP) report tailored for auditors involved in legal practitioners’ trust account assurance engagements. Subsequently, the LPFF issued a directive to both the legal and accountancy professions to adopt the AUP report provided by SAICA
Outlook for the short, medium and long term

SAICA maintains ongoing communication with various regulators 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 expectations of the regulators with the needs of its members

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