VALUE CREATION

OUR STRATEGY, PERFORMANCE AND IMPACT

Technical Resources and Thought Leadership

SAICA developed a variety of technical resources to enhance member education. Initiatives such as the Ethics in Practice sessions and public sector updates received positive feedback, reinforcing SAICA’s commitment to professional development. Thought leadership in the public sector was prominently showcased through multiple articles in Accountancy SA, including a dedicated public sector feature in the May issue.

The growing popularity of the Compliance in Practice series emphasises its value, offering insightful sessions like conversations with the Financial Intelligence Centre and the CIPC. These efforts play a significant role in equipping members with a clear understanding of regulatory requirements and promoting compliance.

Tax Support and Resources

SAICA has strengthened member support through enhanced resources and updated guides, including the popular ‘Tax in Practice’ series, which achieved in excess of 7 000 bookings due to ongoing enhancements.

Academic collaboration − The Tax division initiated discussions with academic members from universities to understand their specific needs. This engagement opens avenues for potential collaboration on future research projects
2024 Tax Bills workshop − SAICA hosted workshops to discuss the 2024 Tax Bills with National Treasury and SARS. While the engagement yielded mixed results, with no definitive commitments to address concerns, the platform enabled members to raise critical issues

Inputs on 2024 Tax Bills − SAICA received over 20 written contributions and inputs from the 7 technical subcommittees for its submission on the 2024 Tax Bills. Key highlights include:

Representation at National Treasury workshops on PAYE, VAT, and Transfer Pricing
Input on 35 sections across three Tax Amendment Bills
Feedback on SARS’s VAT proposal, which would require vendors to claim VAT inputs only in the originating period, potentially creating significant administrative burdens

UN Tax Committee engagement − In August 2024, SAICA participated in a dialogue with a UN Tax Committee member as part of the GAA Tax Workgroup. The session clarified the relationship between the UN Tax Committee and the OECD BEPS project, highlighting areas of overlap and divergence
Strengthening SARS relationships − Formalised engagements between SAICA and SARS and other stakeholder teams across various regions have improved collaboration. Specific SARS divisions, such as the Tax Exemption Unit, Trust Team, and Business Taxes Team, have adopted a more direct approach to engagement, resulting in faster issue resolution and feedback

Addressing systemic SARS issues − Continuous engagement with SAICA structures has facilitated the escalation and resolution of various regional and national issues. Outstanding matters are tracked to ensure accountability
Tax practitioner regulatory model − A survey regarding the relationship between a professional body (SAICA) and its members and its growing role as a regulator in a certain capacity for SARS. The response was high, receiving over 500 responses. The results, which had a strong focus towards a need for a revised Tax Practitioners Model, will form part of further deliberations

Integrated Ethics Plan

In Q2, SAICA rolled out its Integrated Ethics Plan developed through collaboration between Standards, Learning and Development, and Legal and Governance. The implementation included several key initiatives: advocacy submissions to the IESBA, an annual code refresher webinar, and a monthly Ethics in Practice webinar.

Additionally, the Thetha Thuthuka session on ‘The Importance of Ethics and Ethical Dilemmas in the CA Profession’ was highly rated, reflecting strong engagement from students.

Evaluating the International Standards of Auditing

(For Audits of Financial Statements of Less Complex Entities (LCE) ISA for LCE Standard in South Africa)

SAICA in collaboration with IRBA conducted research to assess the potential impact of adopting the recently approved ISA for LCE in South Africa. Key efforts included:

Comparison of the ISA for LCE Standard with the existing suite of ISAs

Compared the International Standards on Auditing (ISAs) to the ISA for LCE, using the comparison that was performed by IAASB staff at the time that the first ISA for LCE exposure draft was published as a basis

Stakeholder consultations

Roundtable discussions were held with practitioners, training officers, consultants, academics, members in business, and regulators to gather diverse perspectives on the potential impacts of implementing the standard in South Africa. To ensure that members could provide informed opinions when consulted, SAICA raised awareness of the standard through technical guidance and various SAICA platforms, alongside conducting the research

Collaboration with IRBA

Strengthening ties to shape the future of audit standards

Analysis of the SAICA comments previously made to the IAASB

Analysed the SAICA submissions on the IAASB exposure drafts related to the ISA for LCE to assess whether SAICA’s main concerns had been addressed in the final approved standard

Upon conclusion of these initiatives, SAICA’s view was that the adoption of the ISA for LCE in South Africa may not bring benefits to the audit practitioners, nor the firms alike. Subsequently, the IRBA board, in line with the SAICA recommendation, approved a decision not to adopt the ISA for LCE.

Audit and Assurance Thought Leadership

SAICA’s Audit Reform initiatives continued in 2024, focusing on key themes through seminars, events, and thought leadership contributions to Accountancy SA and external platforms. Priority areas include:

Fraud prevention
Digital transformation and its impact on audits
Combined assurance frameworks
Attractiveness of the profession to future auditors
Sustainability assurance practices
Quality management enhancements

Strengthening collaboration with regulators and stakeholders is central to SAICA’s Audit Reform agenda. This initiative aims to support the adoption of globally accepted assurance standards, ensure high-quality audits, and address evolving public interest demands.

A cornerstone of this effort is the establishment of the Centre for Audit Quality as approved by the Board, which will:

Promote the execution of high-quality audits
Unite stakeholders across the financial reporting ecosystem
Advocate for policies and standards informed by independent research to enhance corporate reporting integrity

In Q2, SAICA hosted a webinar on the impact of digital transformation in auditing, featuring a panel discussion, ‘Digital Transitioning: Digital Tools and Audit’, with expert insights from Amé Thwaits. Additionally, events on ISA 600 (Revised) provided members with practical knowledge on group financial statement audits, further rebuilding confidence in the profession.

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