WHO WE ARE

KEY CHALLENGES EXPERIENCED IN 2023

Short Term
Medium Term
Long Term
Short Term
Medium Term
Long Term
SMALL-MEDIUM PRACTICES EXPECATIONS
Challenge Response ST MT LT STRATEGIC PILLARS MATERIAL MATTERS
Perceived lack of support in the small-medium practices (SMP) environment. The SMP constituency does not feel adequately supported by SAICA
  • The Member Engagement division expanded its responsibilities to include the Practices portfolio
  • This portfolio was strengthened by engaging directly with practitioners nationwide
  • These interactions provided valuable insights into members’ operational contexts, strengths and challenges. Subsequently, a comprehensive project plan was developed and approved by the national Small and Medium Practices (SMP) interest group
  • Additionally, focused engagements were facilitated between SMPs, registered auditors, and the Independent Regulatory Board for Auditors (IRBA). The outcomes of these engagements were well received by members and the IRBA, leading to initiatives tailored for small audit firms and continuing beyond 2024
  • SAICA launched SAICABiz, its first podcast, spotlighting small and medium practitioners (SMPs) as trusted business advisors for SMEs. Through tailored support and advice, the platform aims to bridge knowledge gaps, empower small businesses to navigate challenges, and achieve sustainable growth. Additionally, it enhances the brand value of SAICA-accredited practitioners by profiling them as go-to business experts and Difference Makers
Digitisation: Training Contract Management System (TCMS) and Electronic Assessment Tool (EAT)
Challenge Response ST MT LT STRATEGIC PILLARS MATERIAL MATTERS
The challenge faced by SAICA regarding the Training Contract Management System (TCMS) and Electronic Assessment Tool (EAT) led to a backlog of contracts awaiting IRBA approval and payment
  • In response, SAICA established a TCMS stabilisation project to address performance issues and resolve user frustrations. This project involved testing and deploying bug fixes, resulting in the resolution of several issues and the reduction of backlog queries
  • Furthermore, a flight migration plan was developed for TCMS to migrate it to a new solution built on modernised and stable infrastructure
  • SAICA has initiatives in development and planned for rollout in 2024, including upgrading the TCMS and EAT systems to ensure improved performance and functionality
Pipeline challenges including the number of learners passing mathematics, low pass rates at third year and PGDA and gap in pass rates for the ITC and APC
Challenge Response ST MT LT STRATEGIC PILLARS MATERIAL MATTERS
The low number of learners passing maths with at least 60%

Low pass rates in third year and PGDA

Challenges experienced by distance learning providers

The gap in pass rates of different racial groups in ITC and APC
  • Develop targeted support programmes in collaboration with schools, universities and other key role players to strengthen maths education. SAICA is doing this by raising funding aimed at school-level initiatives with a specific focus on mathematics
  • SAICA is also continuing to advocate for support for students in third year and PGDA and will continue raising funds for these initiatives
  • At a strategic level, SAICA continues to engage with the affected distance providers to ensure they build the necessary structures to support students better. There have been engagements between the identified provider with key stakeholders in the profession
  • Continue raising funds to support candidates through SAICA’s ITC and APC repeat programmes
  • Implementation of the APC and ITC working group recommendations
Challenges with certain academic service providers
Challenge Response ST MT LT STRATEGIC PILLARS MATERIAL MATTERS
SAICA faces challenges with certain academic service providers, including the risk of HDIs losing their SAICA accreditation due to not meeting criteria. Additionally, declining enrolment in the CA programme is attributed to factors such as decreasing mathematics study, declining pass rates, and challenges at distance learning providers
  • SAICA is implementing more regular monitoring activities and providing ongoing support for HDIs through workshops and capacity-building initiatives to mitigate the risk of accreditation loss
  • SAICA is actively promoting the CA profession and its designations through deeper engagements with academic providers, partnerships with provincial Departments of Basic Education, and contributions to organisations like the South African Maths Foundation
  • SAICA is partnering with universities to promote its CA of the Future Framework, ensuring teaching and learning methodologies are updated accordingly
  • SAICA has held targeted support interventions for the HDIs. These include lecturer development workshops. FASSET funded the 2023 workshops for the HDIs. SAICA collaborates closely with three HDIs that are yet to achieve accreditation at a PGDA level. Plans have been established, and SAICA has partnered with established providers to support capacity development for these institutions
  • SAICA is increasing collaboration with distance providers, gaining endorsement and support from university senior management to address challenges and support student success
The resolution of tax practitioner cases
Challenge Response ST MT LT STRATEGIC PILLARS MATERIAL MATTERS
SAICA faces challenges regarding the resolution of tax practitioner cases, with tax practitioners expressing dissatisfaction over the prolonged duration of disciplinary processes. Concerns have been raised about disciplinary actions initiated for minor delays in tax practitioner declaration submissions, causing frustration among members

Additionally, technical issues with the submission of CPD declarations have further exacerbated member frustration and fear of disciplinary action, given the history of tax practitioner disciplinaries
  • An ad hoc committee commissioned by the Social, Ethics and Transformation Committee (SETCO) has been formed to oversee the timely resolution of all complaints related to tax practitioners (Tax Practitioner Committee)
  • The Disciplinary Code was revised to incorporate streamlined processes for handling complaints regarding late submissions of declarations by tax practitioner members
  • SAICA has enhanced member compliance awareness through various channels, including presentations at Regional Council meetings, weekly Integritax newsletters, website announcements, banners, calling campaigns, and communication via emails and SMS messages
  • SAICA has engaged with SARS regarding expanded tax practitioner regulatory requirements and has expressed concerns. SARS has amended certain proposals with further engagements planned for 2024 to address remaining concerns and mitigate the negative impact on the tax profession
  • Tax practitioner annual declarations are accessible through the SAICA Member Portal and technical issues are being resolved on a case-by-case basis
Attractiveness and Sustainability of the Audit Profession
Challenge Response ST MT LT STRATEGIC PILLARS MATERIAL MATTERS
The audit profession faces challenges related to its attractiveness and sustainability, impacting its role in ensuring financial stability and attracting investments. SAICA recognises the need for reforms to address these challenges and enhance the profession’s effectiveness, particularly in the public sector
  • SAICA has launched an Audit Reform initiative aimed at rebuilding confidence in the auditing profession. Through this initiative, various strategies have been implemented to highlight the significance of auditing in the broader financial reporting landscape
  • This includes showcasing the achievements of our members in the assurance sector across SAICA platforms, engaging with media to emphasise the profession’s importance, and conducting webinars addressing pivotal topics shaping the profession’s future
  • SAICA is profiling the impactful work of our members and firms across South Africa, showcasing the profession’s vital role in the broader financial reporting ecosystem. These efforts are instrumental in enhancing awareness and trust in the auditing profession, contributing to its restoration and continued relevance in South Africa’s capital markets
Growing and Supporting Members in the Public Sector
Challenge Response ST MT LT STRATEGIC PILLARS MATERIAL MATTERS
The public sector faces a critical shortage of skilled resources leading to challenges in public finance management and audit outcomes

Effective legislation and standards are essential for regulating financial management and ensuring the proper use of public funds
  • Supporting the implementation of frameworks for professionalising the public service, SAICA collaborates with institutions to enhance the skills of finance divisions. Contributing to efforts to improve public finance management and governance, SAICA makes advocacy submissions, including contributions to the Public Procurement Bill
  • Empowering public sector CFOs with technical skills, SAICA assists in providing training and support to prepare statements and improving finance management
  • Additionally, SAICA’s inaugural Public Sector Summit facilitated discussions, knowledge sharing, and collaborations aimed at fostering transformation within the public sector. The summit addressed challenges and explored innovative approaches and best practices for building a better public sector, including reforms in public procurement and better expertise management for improved service delivery
Impact oF Enhanced Regulation Within the Profession and Impact on SAICA and its Members
Challenge Response ST MT LT STRATEGIC PILLARS MATERIAL MATTERS
SAICA faces increased regulatory demands, particularly from SARS, requiring the verification of tax practitioners’ CPD records. Proposed changes to Registered Controlling Body (RCB) criteria by SARS may strain SAICA’s resources, potentially leading to a dual role as both a member body and regulator. Furthermore, other regulators are delegating their regulatory responsibilities to professional accounting organisations, adding to SAICA’s regulatory burden
  • SAICA is actively engaging with regulators, including SARS and the CIPC, to establish common ground and manage expectations within existing timeframes and system capabilities. Continuous engagement aims to clarify SAICA’s role and align expectations with regulators, ensuring efficient compliance while mitigating the strain on resources and potential dual regulatory roles
  • SAICA’s proactive approach to adaptation and innovation aims to future-proof the profession, ensuring that its resources and expertise remain relevant and impactful in the evolving accountancy environment
OPERATING CONTEXT

Drop us a Message