MATERIALITY DETERMINATION

PROCESS AND MATERIAL MATTERS

MATERIALITY DETERMINATION PROCESS AND MATERIAL MATTERS

LEGEND:

Worsening

Improving

Stable

LEGEND:

Worsening

Improving

Stable

3. TRUST RESTORATION

RISKS AND OPPORTUNITIES

IMPACT

  • Restoring trust in the profession through advancement of ethics, accountability and discipline
  • Trust in the accountancy profession depends on members’ ethical behaviour and the maintenance of high standards
  • SAICA has a key role to play in advancing ethics among its members and in broader society

RISKS

  • Decrease in trust and admiration scores
  • Advertising budget constraints limiting brand equity initiatives
  • Slow response to conclude disciplinary matters, which is negatively impacting the brand
  • Implication of a few SAICA members in alleged unethical behaviour

RELATED OPPORTUNITIES

  • Improving the effectiveness of audit in South Africa and globally
  • Increased communication and engagement with key stakeholders to maintain good relationships and restore trust in the profession
  • Create efficiencies in the disciplinary process

capitals

strategic pillars

 3. TRUST RESTORATION

  • Restoring trust in the profession through advancement of ethics, accountability and discipline
  • Trust in the accountancy profession depends on members’ ethical behaviour and the maintenance of high standards
  • SAICA has a key role to play in advancing ethics among its members and in broader society

RISKS AND OPPORTUNITIES

RISKS

  • Decrease in trust and admiration scores
  • Advertising budget constraints limiting brand equity initiatives
  • Slow response to conclude disciplinary matters, which is negatively impacting the brand
  • Implication of a few SAICA members in alleged unethical behaviour

RELATED OPPORTUNITIES

  • Improving the effectiveness of audit in South Africa and globally
  • Increased communication and engagement with key stakeholders to maintain good relationships and restore trust in the profession
  • Create efficiencies in the disciplinary process

IMPACT

capitals

strategic pillars

Strategic response

  • Contribute positively to the broader fight against corruption through initiatives such as Unite4MzansiTM, Courageous Conversations and the anti-corruption summit to address issues raised by the Zondo Commission
  • Revised Quality Management standards for the audit profession – SAICA collaborated with the IRBA and PAFA to provide implementation support to the profession on the new standards. IFAC acknowledged the work done by SAICA and made the guidance available to other Professional Accountancy Organisations globally
  • Various SAICA structures discussed the need to establish a Centre for Audit Quality in South Africa (CAQ), as a SAICA entity that will address important issues affecting the audit profession, including the restoration of trust in the profession
  • SAICA played a key role in the education and training of the new ISQM standards and included the IRBA as well as PAFA in the events to promote a consistent application
  • Support for the Special Investigative Unit to address the country’s challenge of transforming diversity and equity in forensic skills
  • Ethics in Practice Series delivered monthly to promote a high level of ethical behaviour and provide practical insight from experts using real life scenarios to assist members in applying their judgment and due process
  • The SAICA Code of Professional Conduct was reviewed to ensure alignment to the International Ethics Standards Board for Accountants (IESBA) and Independent Regulatory Board for Auditors (IRBA) Code

Strategic response

  • Contribute positively to the broader fight against corruption through initiatives such as Unite4MzansiTM, Courageous Conversations and the anti-corruption summit to address issues raised by the Zondo Commission
  • Revised Quality Management standards for the audit profession – SAICA collaborated with the IRBA and PAFA to provide implementation support to the profession on the new standards. IFAC acknowledged the work done by SAICA and made the guidance available to other Professional Accountancy Organisations globally
  • Various SAICA structures discussed the need to establish a Centre for Audit Quality in South Africa (CAQ), as a SAICA entity that will address important issues affecting the audit profession, including the restoration of trust in the profession
  • SAICA played a key role in the education and training of the new ISQM standards and included the IRBA as well as PAFA in the events to promote a consistent application
  • Support for the Special Investigative Unit to address the country’s challenge of transforming diversity and equity in forensic skills
  • Ethics in Practice Series delivered monthly to promote a high level of ethical behaviour and provide practical insight from experts using real life scenarios to assist members in applying their judgment and due process
  • The SAICA Code of Professional Conduct was reviewed to ensure alignment to the International Ethics Standards Board for Accountants (IESBA) and Independent Regulatory Board for Auditors (IRBA) Code

Outlook for the short, medium and long term

  • Delivering on recommendations from Zondo Commission to SAICA:  In October 2022 SAICA commenced its public disciplinary hearing into the matter and on other complaints received. A further 10 days of hearing scheduled for February and March 2023
  • In addition to the established SAICA Ethics Committee, two ethics task groups commenced, namely the Role and Mindset task group and the NoCLAR task group. Both these task groups will be developing guidance to support members

Outlook for the short, medium and long term

  • Delivering on recommendations from Zondo Commission to SAICA:  In October 2022 SAICA commenced its public disciplinary hearing into the matter and on other complaints received. A further 10 days of hearing scheduled for February and March 2023
  • In addition to the established SAICA Ethics Committee, two ethics task groups commenced, namely the Role and Mindset task group and the NoCLAR task group. Both these task groups will be developing guidance to support members

 4. State of the economy

RISKS

OPPORTUNITIES

  • The challenging socio-economic context in South Africa has been exacerbated by high unemployment levels, disrupted energy supplies, water shortages, a deteriorating infrastructure, the poor state of education, rising corruption, a failed state, lack of accountability, governance and productivity, service delivery protests, an increase in immigration, and outcomes of the Zondo Commission and implications for the profession

  • The Institute’s sustainability and ability to create value for its members and other stakeholders depends on our ability to remain relevant and responsive no matter the prevailing context

RISKS

  • Impact on revenue from negatively affected members
  • Budget cuts/constraints leading to the inability to engage with members and host flagship events
  • Ongoing load-shedding leading to a rise in the cost and complexity of doing business
  • Lack of progress in prosecuting cases of corruption revealed by the Zondo Commission
  • The future pipeline of the accountancy profession is detrimentally impacted by low student pass rates, the lingering effect of the COVID-19 pandemic, challenges experienced by distance academic providers, and historically disadvantaged institutions, and the disturbances caused by load-shedding

RELATED OPPORTUNITIES

  • Reintroduction of face-to-face events, especially in districts, after a two-year hiatus will increase engagement between members and SAICA
  • Strengthening relationships with government through support on key government priorities
  • Contributing positively to the broader fight against corruption
  • Advocating for policies that promote economic growth
  • Strengthening and capacitating distance academic providers and historically disadvantaged institutions

 4. State of the economy

  • The challenging socio-economic context in South Africa has been exacerbated by high unemployment levels, disrupted energy supplies, water shortages, a deteriorating infrastructure, the poor state of education, rising corruption, a failed state, lack of accountability, governance and productivity, service delivery protests, an increase in immigration, and outcomes of the Zondo Commission and implications for the profession

  • The Institute’s sustainability and ability to create value for its members and other stakeholders depends on our ability to remain relevant and responsive no matter the prevailing context

RISKS

RISKS

  • Impact on revenue from negatively affected members
  • Budget cuts/constraints leading to the inability to engage with members and host flagship events
  • Ongoing load-shedding leading to a rise in the cost and complexity of doing business
  • Lack of progress in prosecuting cases of corruption revealed by the Zondo Commission
  • The future pipeline of the accountancy profession is detrimentally impacted by low student pass rates, the lingering effect of the COVID-19 pandemic, challenges experienced by distance academic providers, and historically disadvantaged institutions, and the disturbances caused by load-shedding

OPPORTUNITIES

RELATED OPPORTUNITIES

  • Reintroduction of face-to-face events, especially in districts, after a two-year hiatus will increase engagement between members and SAICA
  • Strengthening relationships with government through support on key government priorities
  • Contributing positively to the broader fight against corruption
  • Advocating for policies that promote economic growth
  • Strengthening and capacitating distance academic providers and historically disadvantaged institutions

capitals

Strategic Pillars

capitals

Strategic Pillars

Strategic response

  • SAICA hosted an anti-corruption summit involving key stakeholders to participate in devising solutions to address issues raised by the Zondo Commission
  • SAICA hosted a Courageous Conversation dealing with the protection of whistleblowers and has entered into talks to collaborate with Whistleblower House
  • SAICA also partners with Professor Mervyn King’s The Good Governance Academy focusing on the promotion of good governance
  • Economic Conference hosted by SAICA in KZN informed an Economic Blueprint incorporating proper economic development initiatives to be put in place to grow the South African economy
  • Promoting the importance of the chartered accountancy profession and all of SAICA’s designations while promoting the importance of mathematics and investing in education
  • SAICA has engaged closely with UNISA’s Senior Management including the VC and has raised funding to support UNISA students
  • SAICA engaged with the historically disadvantaged institutions and raised funding for bursaries for students and for general capacitation of these institutions

Strategic response

  • SAICA hosted an anti-corruption summit involving key stakeholders to participate in devising solutions to address issues raised by the Zondo Commission
  • SAICA hosted a Courageous Conversation dealing with the protection of whistleblowers and has entered into talks to collaborate with Whistleblower House
  • SAICA also partners with Professor Mervyn King’s The Good Governance Academy focusing on the promotion of good governance
  • Economic Conference hosted by SAICA in KZN informed an Economic Blueprint incorporating proper economic development initiatives to be put in place to grow the South African economy
  • Promoting the importance of the chartered accountancy profession and all of SAICA’s designations while promoting the importance of mathematics and investing in education
  • SAICA has engaged closely with UNISA’s Senior Management including the VC and has raised funding to support UNISA students
  • SAICA engaged with the historically disadvantaged institutions and raised funding for bursaries for students and for general capacitation of these institutions

Outlook for the long term

  • The Economic Blueprint spearheaded by SAICA and its members will act as a catalyst to bring about long-term meaningful change in response to the challenge of getting the country back on the path of economic development and growth

Outlook for the long term

  • The Economic Blueprint spearheaded by SAICA and its members will act as a catalyst to bring about long-term meaningful change in response to the challenge of getting the country back on the path of economic development and growth
SUSTAINABILITY APPROACH

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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