 Authored by: Faith Ngwenya, Technical and Standards Executive at SAIPA
Last Thursday, President Cyril Ramaphosa delivered his 2019 State of the Nation Address (SONA). In it, he outlined a set of lofty ambitions at a time when the economy continues to wane, the national budget is stretched, and both state-owned enterprises and our infrastructure are failing us. After the event, the reaction from other political parties could be summed up in one word: disappointment. They felt the President had set a high bar but had done little to reveal how we should clear it. Whether we can or not will depend largely on how efficiently and effectively the nation’s money is put to good use. At a national, provincial, municipal, business and even personal level, the need for strong financial management, backed by competent and ethical professional accounting, has never been greater. Funding a new dawn President Ramaphosa eloquently highlighted the many problems that required corrective action, from resuscitating Eskom to energising youth employment opportunities, from boosting continental trade to reducing violent crimes. Yet, the underlying conundrum is as it has always been - how will we fund these aspirations? In South Africa, money is a scarce national resource compared to the sheer volume of critical projects crying out for backing. There are only limited means to make funding available.These include being more productive (earning more), encouraging investment (attracting more), spending less (saving more), and prioritising the financing of projects which promise the highest growth (leveraging more). Each approach, or even a hybrid of them all, demands the conservation of limited funds through careful financial management. The importance of accounting We at SAIPA, along with other professional accounting organisations (PAOs) around the world, have done much to prepare Professional Accountants for a future in which the greater part of their work will focus on business advisory services. This is in response to the continuing encroachment of automation technologies and artificial intelligence on many of our more technical duties and reporting capabilities. Yet, with SONA 2019, we see a continuing need for the so-called “bean counters” of the past, who meticulously account for every last cent to ensure minimum waste and maximum utility of scarce funds. We’ve become a society that scoffs at those who are so pedantic about mere fractions of a cent, yet the end goal of accounting is to make money as valuable as possible and accomplish more with it. The simple philosophy of “a penny saved is a penny earned” is one that has helped return many a struggling economy to sustainability and even growth. Do we need more accountants? In South Africa, the number of Professional Accountants who are members of its various professional bodies is probably above 50,000. According to a 2017 paper from Oxford Economics, there were some 260,000 registered accountants in the UK and Northern Ireland that year. That’s quite a difference. Although that nation is right next door to the European Union, the EU does have its own accountants. South Africa is similarly positioned to its African neighbours. Can the difference be attributed to there being more businesses in the UK? A December 2018 House of Commons Library Briefing Paper on Business Statistics indicates there were 5.68 million British businesses around that time, while the reported number in South Africa was very nearly the same. The obvious answer is the variation in GDP: $386 billion nominal for South Africa in 2019 and $2.9 trillion nominal for the UK in 2018. More transactions require more accountants. It follows then that any planned or actual growth in a nation’s economy commands a proportional increase in the ranks of its Professional Accountants. This is something the government must seriously consider if it hopes to make progress. Young accountants Where these extra accountants will come from is not hard to guess. The SONA fell close to Youth Day, an occasion to acknowledge the commitment of young South Africans to positive change and the part they have historically played in it. Even today, we see them standing up fearlessly for the environment and calling for an end to corruption. This ethical mindset is exactly what the Profession needs. If there is training to be done, let it first be for a new wave of Professional Accountants who are guided by higher ideals. And if skills development funding is to be given, let it first be for those who have the aptitude for accounting but not the means to obtain the required qualifications. Supporting them will ensure the optimal use of the finances that fuel change. ENDS MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African Institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants
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 The 4th Industrial Revolution is here and Professional Accountants must prepare themselves for a sea change in their industry. This will be the main message at the upcoming Accounting iNdaba 2019 to be held from 13th to 15th August at the Cape Town International Convention Centre. The event is a collaboration between the South African Institute of Professional Accountants (SAIPA) and the South African Institute of Chartered Accountants (SAICA). The theme for the conference is "The Future-Ready Professional Accountant in the 4th Industrial Revolution".
Faith Ngwenya, Technical and Standards Executive at SAIPA, urges all Professional Accountants to attend the event. "It is of the greatest importance that South African accountants understand how emerging technologies will soon affect them and the organisations they serve," she says. Mastering disruption According to Ngwenya, future-ready practitioners are digital authorities, able to leverage automation technologies, analytics and AI to enhance their own services and help their clients build innovative business models. "They must be ahead of the technology curve because, as trusted business advisors, this is where their clients will expect their competencies to lie," she says. That doesn't mean they must become IT gurus or data scientists. They should, however, understand the technologies and their dynamics in business at a strategic level, being able to advise on their sensible utilisation and deployment. Above this level, Professional Accountants will have to develop soft skills, like empathy and creative thinking, and extended services that will add value to their financial insights, like risk management and business rescue. Getting answers "The aim of the Accounting iNdaba 2019 will be to offer attendees a preview of the Profession's future and the best ways to approach it," says Ngwenya. The three day deep dive will address this and other trending topics, such as IFRS, SMPs, tax and public sector accounting. The Institute is expecting to host around 1000 delegates. Both local and international speakers will deliver presentations from the main auditorium as well as two plenary breakaway halls. They represent respected professional bodies such as the International Ethics Standards Board for Accountants (IESBA), the Association of Certified Fraud Examiners (ACFE), the International Public Sector Accounting Standards Board (IPSASB), and the Accounting Standards Board (ASB). Attendees can also listen to presentations over Bluetooth in two semi-enclosed "think tank" areas. The invited speakers include, among others, Darrel Scott, IASB Board Member; Winnie Kiryabwire, IESBA Board Member; Lindy Bodweig, IPSAS Board Member; and Jeanine Poggiolini, Technical Director at the Accounting Standards Board. Packages and special events Delegates can attend any presentation they desire for a once-off admission fee. The fee includes a reservation at a cocktail party on the first evening, where guests can socialize, and a formal gala dinner the next night. The Institute has also secured a special tourist package which is available to accompanying spouses and partners at an additional cost. They can also purchase a reservation to attend the gala dinner with their delegate partner. Joining forces SAIPA and SAICA have agreed to collaborate on this and upcoming conferences. “As the two largest professional accounting bodies in South Africa, we feel that too many events are driven by a profit motive, to sell products and services into the industry,” says Nwenya. “By pooling our resources and expertise, we can offer practitioners events that are relevant to their needs and impart information vital to the sustainable growth of accounting, regardless of their professional designation or specialisation.” Registering Professional Accountants wishing to attend the Accounting iNdaba 2019 can view pricing packages and register at www.saipa.co.za/accounting-indaba-2019. A link on the site allows visitors to share the event page with their LinkedIn connections. Says Ngwenya, "We're asking that they do share the event to make sure as many accountants as possible benefit from the same valuable insights they’ll receive." ENDS MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African Institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants  Professor Small, Executive: Education and Training at the South African Institute of Professional Accountants (SAIPA), says the results of the Institute’s May 2019 Professional Evaluation (PE) are very encouraging: “They reveal that SAIPA’s strategies to bring measurable transformation to the Accounting Profession are bearing fruit, especially through the implementation of Project Achiever, which is funded by FASSET.”
What is SAIPA’s Professional Evaluation? Before being admitted as a member of SAIPA and awarded the designation of Professional Accountant (SA), applicants must pass a Professional Evaluation. Held in May and November each year, the four-and-a-half hour written exam is a competency-based assessment of their practical accounting skills, interpretation of applied ethics and professional conduct. It is aligned with the International Education Standards (IES 6). “The Institute’s Professional Evaluation sets the minimum standard for excellence and is a rite of passage for all our members,” says Professor Small. Results 600 candidates took the latest Professional Evaluation at SAIPA facilities across the country, with assessments reaching as far as Upington. Of those, 360 were black, 117 white, 81 coloured and 42 Indian. 432 passed, with the top three positions being taken by black candidates from a total of 241 black candidates who were declared competent. 363 were female while 237 were male, which gives women accountants a significant lead compared to previous Professional Evaluations. “This is the largest sitting we’ve had in May as most candidates prefer to write in November, and, as can be seen, we are accelerating towards the desired demographic for the Profession,” says Professor Small. Project Achiever 500 candidates were graduates of SAIPA’s Project Achiever programme which is held every Saturday for 18 weeks running up to the Professional Evaluation. Although intended to prepare attendees for their Professional Evaluation, the goal of the programme is mainly to instil in them the critical soft skills, technical insights and mental attitude that make a well-rounded Professional Accountant. This not only ensures they are equipped to qualify for their designation but are truly workplace-ready and can operate as team players in a corporate environment, even if they are subcontracted. “Today’s Professional Accountant needs to develop a more sophisticated complement of skills, especially soft skills that enable them to master the social and empathic requirements of being a trusted business advisor,” says Professor Small. Pass rates for Project Achiever have also increased since its launch in 2015. It provides mock papers, exercises and assessments, continually stretching the competencies of participants. As of January 2017, the course can also be taken online, providing inclusive training to those who do not have access to a SAIPA training facility. “The programme is definitely growing in popularity because the word is out that those who attend are more likely to pass their Professional Evaluation, but more importantly are equipped with the competencies to contribute as a professional to the constantly changing environment,” says Professor Small. SAIPA’s commitment to change He also says the Institute continues to dedicate itself to transforming the Profession to make it truly representative of the demographics of South African society. He calls on more black school pupils and women to pursue the career of Professional Accountant to help bring balance to the industry. “Attitudes have changed, obstacles have been removed, and those previously disadvantaged groups who wish to become accountants can count on SAIPA’s commitment to equality through supportive guidance and proactive initiatives like Project Achiever,” he says. Professional Evaluation Top 10 These were the ten highest scoring candidates:
ENDS MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants Photo: Mr. Shaun Simpson, Headmaster at Rondebosch Boys' High in Rondebosch, Cape Town
According to Professor Rashied Small, Executive: Education and Training at the South African Institute of Professional Accountants (SAIPA), the Institute’s annual National Accounting Olympiad benefits both pupils and their schools. “For pupils, it’s a chance to catch a glimpse of a future beyond the classroom, while schools can measure their effectiveness in imparting knowledge on this important subject,” he says. Entries for this year’s Olympiad will close on 14th June 2019 and schools who haven’t yet registered their accountancy students should do so immediately. A pupil’s perspective Felicia Makondo, who matriculated from Limpopo Province’s EPP Mhinga Secondary School in 2018 and is now studying a BCom in Accounting at the University of Cape Town, believes the competition did more than test her accountancy knowledge. Makondo participated in NAO 2017, achieving an admirable third place nationally. “It made me love accounting even more because, through the contest, I realised it goes beyond the numbers,” she says. “There was also some economics, so I experienced a side of accounting I hadn’t known before.” Although Makondo knew she wanted to be an accountant, she was heartened by her NAO win. “I would definitely tell other kids to enter the competition because it will develop their love for accounting and improve their accountancy marks,” she says. A headmaster’s perspective According to Mr. Shaun Simpson, Headmaster at Rondebosch Boys' High in Rondebosch, Cape Town, the NAO helps its pupils and teachers gauge their performance. The school is no stranger to success. For the 2018 competition, four of its students were in the national Top 50, one took second place for the Grade 12 category and two Grade 11s placed first and third respectively. Says Simpson, “Our school enters regularly and we've performed well. Our aim is to offer our boys the opportunity to test their ability and knowledge on any open platform and the Olympiad obviously offers that chance. It's just one of the benchmarks we use to measure how both our teachers and the boys are doing, and it's proved very useful in that regard.” Simpson encourages principals to make sure their accountancy students register for NAO 2019: “I would absolutely recommend that other schools get involved and test their mettle against their neighbours.” How it works To enter the contest, pupils must be taking Grade 11 or 12 Accountancy with the intention of studying a BCom degree. They can only be registered by their schools, at www.saipa.co.za/national-accounting-olympiad-2019. The entry fee is R50 per pupil but is free for no-fee schools, and they may enter as many pupils as they wish. The written exam will be held at each participating school on 29th July 2019 and winners will be announced once all papers are marked. They and their teachers will be recognised at a gala award ceremony and will be featured in the Institute’s media releases. The venue and date of the function will be announced nearer the time. “The NAO has been held annually since 2002 with more schools participating each year,” reports Professor Small. “The valuable experience it offers has made it an eagerly anticipated event.” ENDS MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African Institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants Photo caption: Faith Ngwenya
Authored by: Faith Ngwenya, Technical and Standards Executive at the South African Institute of Professional Accountants (SAIPA) By law, Professional Accountants may assume the additional responsibilities of the independent reviewer, business rescue practitioner, tax practitioner or tax technician. However, the law does not stipulate the standard of competence they must meet to ensure they are capable of delivering the said services. This is left to the discretion of the professional body of which they are members. At the South African Institute of Professional Accountants (SAIPA), we have committed ourselves to a high standard of demonstrable competence in order to protect the public interest and the way in which the profession is perceived. Meeting standards for competence SAIPA is a voting member of the International Federation of Accountants (IFAC), a standards setting body for all aspects of accountancy. IFAC’s work revolves around protecting both the public interest and the reputation of the profession. On our own volition, we, therefore, adhere to its mandate to promote its prescribed levels of competence among our members. From a business perspective, a high standard of proficiency in Professional Accounting and associated duties wins favour from users of those services, resulting in increased engagement. So every accountant should strive to not just meet the standard but to offer their very best performance at every opportunity. Independent review Regulation 29 of the Companies Act permits an accountant who is qualified to be appointed as an accounting officer for close corporations, in terms of the Close Corporations Act, to carry out independent reviews of any company whose public interest score is lower than 100. Since 2011, SAIPA has developed a robust qualifications framework for training our members in independent review. This includes a course comprising thirteen modules. After completing it, candidates must write an online assessment and achieve at least 75 percent to be recognised by the Institute as competent to carry out independent reviews. Business rescue In terms of Regulation 138 of the Companies Act, Professional Accountants can be appointed as business rescue practitioners. SAIPA requires its members to specifically apply for recognition as a practitioner and to demonstrate they have the necessary competencies. They must first obtain a certificate in business rescue, currently offered by the University of Johannesburg, the University of Pretoria and UNISA, and supply the Institute with a copy of the award. They must also provide a CV indicating they have gained experience in business rescue, insolvency, liquidation or turnaround strategies, as well as the contact details for references who can confirm this. The last leg of the recognition is an intense panel interview which is a technical, verifiable assessment of competence. Only after meeting these requirements will a member be issued with a letter of good standing. Tax practitioner Section 240A of the Tax Administration Act allows anyone who is regulated by a Recognised Controlling Body and participates in continuous professional development set by that body, to register with SARS as a tax practitioner. SAIPA is a Recognised Controlling Body with SARS. Any member who wishes to operate as a tax technician must first achieve an NQF level 5 qualification and tax practitioners must hold an NQF level 6 qualification, even though SARS requires only an NQF level 5 for both. They must then complete an online assessment at a designated secure assessment facility. This is to ensure the credibility of the assessment process. Professional indemnity SAIPA offers its members professional indemnity cover of up to R7 million for full members and R4 million for affiliate members per annum. This is a boon to every accountant as there are inherent risks in providing financial services, especially where any level of professional assurance is provided. SAIPA cannot prevent members who have not been certified through its assessments from offering the extended duties mentioned above. However, without having been declared competent by the Institute to perform them, those members will not be covered for any engagement involving such services. Good competence makes sense Some members have complained that they are required to meet a higher standard of competency than prescribed by law to take on these roles. But, in most cases, the law does specify that the regulatory body will determine the standard, either directly, as in the Tax Administration Act, or indirectly, as with the Companies Act, which requires independent reviewers to be members of “good standing”. It behoves SAIPA to ensure one’s proficiency is not only based around the law but, more importantly, the needs of the clients they serve. It makes ethical, professional and business sense for each Professional Accountant to strive for the highest standard of competence they can master, regardless of the duties they perform. Not only will they better protect the public interest - the accountant’s first responsibility - but they will also build trust in the profession, resulting in higher engagement with customers and employers alike. ENDS MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African Institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants  Kantha Naicker, Vice Chairman of the Board at the South African Institute of Professional Accountants (SAIPA), urges parents to ensure their children, who are studying Accounting in Grade 11 or 12, participate in its National Accounting Olympiad 2019. “They should ask their schools to register its pupils for the competition before the closing date and to accommodate the written tests,” she says.
Entries for the NAO, which has been held annually over the last 16 years, will close on the 14th of June. The competition was developed to promote the Accounting Profession as the career of choice among school pupils who demonstrate an aptitude for the subject. Such contests hold several important benefits for children trying to settle on their future profession. Career confirmation Winning, doing well or simply seeing their own improvement from their efforts to achieve an award can help your child make that vital career choice that will inform every future study and career decision. Those who know what they want to do with their lives are more determined to overcome the inevitable obstacles they will face along the way. Improved self-esteem We generally advise children not to measure themselves against others. The fact is, when they do well compared to their peers, especially against those exhibiting competence in the given area, it can give them greater confidence in their own abilities and set them up for success. Consequently, they will be more willing to participate in activities they may previously have avoided or been neutral towards. Better self-awareness If there’s one thing teens want, it’s greater autonomy - the ability to make their own decisions and take control of their lives. Parents should therefore find ways to allow their children to make independent career decisions, acting as advisors rather than directors. A competition is an opportunity for them to gain the self-awareness required to make experience-based choices. Helping your child succeed Says Naicker, “The most important thing is to help our children realise their capabilities so they can set attainable goals that ultimately lead to a fulfilling life. Challenging but fair competitions like the NAO are an excellent way to achieve this end.” How it works Grade 11 and 12 pupils must be registered by their school for NAO 2019 at www.saipa.co.za/national-accounting-olympiad-2019. The entry fee is R50 per student but is free for no-fee schools. Entrants must currently be studying Accounting with the intention of completing a BCom degree. The exam will take place on the 29th July 2019 and winners will be announced once all papers are scored. The winners and their teachers will be awarded at a gala award ceremony, the venue and date of which will be announced nearer the time. A stable career The career of a Professional Accountant (SA) is evergreen. It offers a high level of job satisfaction and has weathered centuries of economic downturns and technological advances. “Just entering the NAO contest offers your child their first taste of a respected occupation for which there will always be a demand,” says Naicker. “Gift them with this opportunity by encouraging your local school to participate.” ENDS MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants |
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