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The South African Institute for Professional Accountants (SAIPA) says applications to its Project Achiever programme, which is geared to assist those writing the November 2018 SAIPA Professional Evaluation (PE) examination, will close on May 30th and has urged entrants to not miss this deadline.
Classes are set to start on June 2nd. New entrants to the professional accountancy profession are mandated to pass the PE examination, which ensures they adhere to international education standards. This is done by assessing whether an aspiring professional accountant meets the minimum competence or proficiency level to be assigned the designation of Professional Accountant (SA). The designation is one of the few authorised by the South African Revenue Service to provide services as a tax practitioner. A Professional Accountant (SA) can also perform numerous functions, including issuing reports in terms of the Companies Act, Close Corporations Act, and Micro lending industry regulations, Sectional Titles Act, Non-Profit Organisations Act, and Schools Act. Inception For many aspiring Professional Accountants (SA), the PE examination can be both an important step in the development of a Professional Accountant (SA) and a potential roadblock for those who are unable to pass the exam. From here Project Achiever was born in 2015, a programme funded by Finance and Accounting Services Sector Education and Training Authority (FASSET) that assists candidates in successfully completing the examination and becoming designated SAIPA professional accountants. Although the programme was implemented to facilitate the transformation agenda of the profession, in other words particularly aimed at helping newly qualified black accountants, it is open to all candidates. Last year SAIPA also launched the online version of Project Achiever to reach interested candidates in outlying areas. The 12-week, competency-based and learner-centered programme that focusses on the holistic development of the young professional. It is not a content-based programme designed to get people through an examination. Rather it exposes candidates who have completed the professional development and practical experience component of their development to the ‘soft’ skills components required to become ethical and proficient professionals. This enables them to develop into professional accountants able to provide solutions to the issues brought to them by their clients. Candidates are encouraged to consolidate their knowledge through self-study and research and to apply this to develop practical and implementable solutions to business scenarios and problems in a multi-disciplinary manner through group discussions. The PE examination is further aligned with the International Education Standards 6 (IES 6) Assessments, with an emphasis on the principles of competency-based assessment. “The benefit for future employers or clients is that they will benefit sooner from the combined competence and expertise of the Professional Accountant (SA) beyond the preparation of financial statements for compliance purposes,” explains Ngobese. For more information regarding requirements and applications for Project Achiever please click here. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@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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Author: Darren Gorton, Finance Executive at the South African Institute of Professional Accountants (SAIPA)
Cryptocurrencies are dominating the media. This one has collapsed, that one is on the rise, and a new one is around the corner. Their flavour isn’t quite as piquant today as it was yesterday thanks to fraud, an upsurge in Initial Coin Offerings (ICO) and the challenges that face its legislation and regulation across country and government. In April the South African Revenue Service (SARS) announced that it will be treating cryptocurrencies using normal income tax rules. Affected taxpayers will, therefore, be expected to declare cryptocurrency gains or losses as part of their taxable income in the tax year in which it is accrued. Cryptocurrencies are also often confused with blockchain which is a complex, layered technology that provides the backbone of cryptocurrency, but has the potential to deliver so much more to enterprise, industry and the consumer. Cryptocurrencies may be getting all the airtime, but blockchain is the underlying technology, and this application of the technology is only a small part of what this technology can enable. Blockchain itself is largely unexplored, even though it has been around for nine years now. To fully understand the potential of blockchain, it’s worth understanding precisely what it is and what it is not. According to Deloitte, blockchain is defined as a ‘digital and distributed ledger of transactions, recorded and replicated in real time across a network of computers or nodes’. It is already being used as a way of replacing databases thanks to its secure, centralised network – taking the vulnerable database of today and turning it into something that can be trusted. If a bank runs its own database, they can change information without anyone knowing. With blockchain, it is impossible to do so without leaving a digital trail. This means it provides a system that all parties can trust inherently, and the applications of this high level of transparency and security aren’t limited to just the finance industry. Removing the middleman By implementing blockchain, the business can cut out the middlemen who originally provided the verifications needed for transactions. There is even talk of it being implemented in security exchanges where the exchange is currently the middleman between the investor and the company they want to invest in. While the technology may not have an immediate and profound impact on the man on the street, for the accountant it potentially offers an additional layer of trust to the numbers. Blockchain provides the certification between two parties in a transaction, acting as the verification in itself. There is increased emphasis on the validity and accuracy of the information. The Professional Accountant (SA) can lean on the security afforded by blockchain to focus on adding value to the enterprise across financial reporting, analysis and insights. Of course, this does mean that the accounting industry needs an understanding of the technology, how it supplies the verification and the reasoning behind its security and validity. Businesses are set to adopt this technology, of that there is no doubt. It won’t happen overnight, and the middlemen are going to push for a lot of legislation to delay the advance of blockchain technology as far as possible or even make some of the applications unlawful. It is a battle that technology will most likely win in the long run, and the Professional Accountant (SA) needs to know how this will impact on clients and the industry they are working in. For the Professional Accountant (SA), the pressure is on. By understanding how blockchain works and the impact it has, they can provide clients with exceptional insight into everything from the latest regulations to innovative applications. The circle of success In South Africa, we still have a way to go, but that doesn’t mean that the Professional Accountant (SA) can put their head in the sand and ignore it. As cryptocurrency fluctuates and organisations such as the Reserve Bank, SARS and other government departments implement regulation to manage the movement of money around the globe, blockchain is going to evolve at a rapid pace. Another aspect to consider is information. The POPI Act and other similar forms of legislation that control information are set to impact on the development and adoption of blockchain. It connects to the digital lives that people are leading, the regulation around what companies can or cannot maintain, and how blockchain can support compliance. It is difficult to say how blockchain and cryptocurrencies are going to play out. The Professional Accountant must be aware of how cryptocurrencies are declared in business records and monitor regulation. They have to know what to look out for, the risks that are involved and the impact on the business. And they need to recognise that these technologies aren’t going to leave any time soon. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@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 Author: Faith Ngwenya, Technical Executive at the South African Institute of Professional Accountants (SAIPA)
The proposed inclusion of professional accountants into a schedule of the Financial Intelligence Centre Act (FICA), making them accountable institutions, will have major repercussions for the accountancy industry. The Financial Intelligence Centre has identified the sector as being “vulnerable” to money laundering and terror financing activities. Accountable institutions Institutions identified in Schedule 1 to the FICA include lawyers, estate agents and banks and in Schedule 3 include motor vehicle dealers and dealers in Kruger rands. The act requires that accountable institutions register with the Financial Intelligence Centre (FIC), that they disclose the identity of their clients to the centre, train their employees, appoint a compliance officer, draw up a risk register and plans to mitigate the risks, give them additional recordkeeping duties, and oblige them to report to the FIC. SAIPA has raised concerns in terms of the compliance burden that will now go way beyond the existing obligation to report suspicious transactions or activities. The latest proposals will impact on the administrative and financial burden of especially small practices and people running their own businesses. Legislative alignment The “overly broad” wording of the proposal is upsetting. It also appears to be in conflict with existing legislation such as the Companies Act. In terms of the act a person can register his own company by simply registering with the Companies and Intellectual Properties Commission. SAIPA is not shunning its responsibility as a regulatory body, but it does request much more clarity on some of the wording, to understand the impact of the proposals. Questions which beg answers are whether there will be monetary thresholds or number of employees which may exclude some of the smaller firms from this heavy compliance burden, whether there will be financial or administrative assistance if smaller firms are not excluded, and what exactly defines “assisting” a client. Who will be an accountable institution According to the FIC any person who carries on a business of preparing for or carrying out transactions for a client concerning the following activities will be considered an accountable institution: * assisting a client in the planning or execution of the buying or selling of immovable property; the buying or selling of a business; the opening or management of a bank, investment or securities account; the organisation of contributions necessary for the creation, operation or management of a company outside South African; the organisation of contributions necessary for the operation or management of a close corporation; the creation, operation or management of a company or a close corporation; and the creation, operation or management of a trust outside the country. * representing a client in any financial transaction; * assisting a client in disposing of, transferring, receiving, retaining, maintaining control of or in any way managing any property; or * assisting a client in the management of any investment. Money launderers and accountants According to the FIC professional accountants are “particularly useful” for money launderers when it comes to the seeking of financial and tax advice to reduce their tax liabilities or to place vast amounts of proceeds. They also approach professional accountants to help with the setting up of companies and trusts to hide the proceeds of crime and the perpetrator of crime. They also use property transfers as a cover to move illegal funds and they use accountants to get access to financial institutions. SAIPA believes there are solutions to deal with concerns raised by the FIC, but that the current proposal is a kneejerk reaction to the behaviour of unscrupulous practitioners. However, if the proposal is accepted as it is accountants who are awarded the professional accountant designation by the institute must be aware that they will be considered an accountable institution. They will have to comply with the requirements set out in the FICA schedule. However, SAIPA is of the view that the obligations that will be placed on a professional account is to become a forensic investigator and an auditor – all in one. The FIC is of the opinion the inclusion of professional accountants will improve its capability for producing “better quality and more substantive financial intelligence reports” for use in solving crime. A concern is whether the FIC will have the capacity to give due regard to all the new sources of information. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@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 Project Achiever Extended Programme fares well in November SAIPA Professional Evaluation Exam13/12/2017 The South African Institute of Professional Accountants (SAIPA) recently announced its latest Project Achiever Extended Programme, which runs from 11 November 2017 to 28 April 2018. The initiative is designed to prepare candidates for the SAIPA Professional Evaluation exam, allowing them to become a Professional Accountant (SA).
The course builds on the success of the Institute’s original Project Achiever programme, but strives to make SAIPA’s professional designation accessible to a wider set of applicants. “We acknowledged that a large number of students study accounting through universities of technology,” reports Professor Rashied Small, Executive: Education and-, Training for SAIPA. “By opening up this opportunity to them, we can bolster the accounting ranks in South Africa.” The Extended Programme improves on Project Achiever in a number of ways. The entry requirements for the latter included an NQF Level 7 degree, as well as three years of learnership or 6 years of work experience or completion of a training programme with another accredited professional accounting body. The new requirements remain the same except that candidates only need an NQF Level 6 diploma. However, they must pass an entry assessment to prove their ability to meet SAIPA’s high standard of competency. The new programme is also longer, held over five months instead of three like its predecessor, and focuses more on soft skills development, like planning, time management, reading, critical thinking, reporting and analysis, in addition to the usual technical abilities. Empowerment drive Like Project Achiever, candidates of black African descent, or coloured African descent from the Western and Northern Cape regions only, are fully funded by FASSET (Finance and Accounting Services Sector Education and Training Authority). Other applicants may attend the course at a cost of R4000. Professor Small notes that SAIPA is the first professional body to offer such a programme in the Northern Cape, with 100 people from that area attending. “Of the 490 attendees, about 400 are fully funded, so it bodes well for our empowerment goals,” he says. “We found that Extended Programme attendees fared far better in their Professional Evaluation exams than those who did not participate or even Project Achiever graduates,” observes Small. He attributes their success to the greater focus on soft skills and the longer time they had to develop them in combination with technical competencies. Of the total number of 680 candidate who wrote the November 2017 Professional Evaluation assessment 561 were classified as being competent. 210 of the total number of candidates who wrote 201 were Project Achiever attendees with a pass rate of 83% and 250 were Extended Programme attendees with a pass rate of 90%. The pass rate for non-attendees was around 77%. The top 10 scoring candidates comprised four from the Extended Programme and two from Project Achiever. SAIPA’s Project Achiever Extended Programme was developed to make a career in accounting more accessible to a greater number of people while maintaining the quality and standards of the qualification and designation, and offer a better chance of passing the Professional Evaluation exam the first time. “And, thanks to our partnership with FASSET,” concludes Small, “SAIPA can contribute positively to the transformation agenda for the industry.” November Professional Evaluation results The November PE exam, which was written by 680 qualifying applicants, yielded 561 new professional accountants. Two of the top 10 candidates were from the Project Achiever initiative and four from the Project Achiever Extended Programme. The top ten candidates for this examination were: Ranking Name Region 1 Singh Ashrika Durban 2 Snyman Riette Midrand 3 Steyn Lente Bloemfontein 4 Boshoff Christelle Midrand 5 Skosana Mehluli Qaba Midrand 6 Wayiza Nomakorinte Durban 7 Oleastro Maria Midrand 8 Snyders Tracey-Lee Upington 9 Nieuwenhuizen Alana Bloemfontein 10 Bux Ridhwana Durban ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@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  Author: Bongani Coka, CE of the South African Institute of Professional Accountants (SAIPA) A good reputation is hard to build, but can be destroyed overnight. This is particularly true of the accountancy and audit profession, which lives off its credibility. Distrust has recently become a major issue, especially with the recent public backlash experienced by politically implicated persons in the accounting profession. Accountants need to keep in mind that establishing trust requires more than just honesty: it requires the ability to practice sound moral values. Major drivers of trust are openness, competence, benevolence and integrity. Openness The quality of ‘openness’ has a distinct ethical undertone as the disclosure of information can assist those who are affected by the information to either advance or protect their interests. Failure to disclose such information effectively bars those affected by it from enhancing or protecting their interests. Consequently, a lack of openness on the side of a professional accountant will be perceived as unfair or unethical by their clients and other key stakeholders, which in turn will undermine public perceptions of the trustworthiness of the professionals. Competence Due to the recent spate of scandals, the South African public now question accountants’ ability to act in a manner consistent with the code of ethics for accountants and their competency to provide a quality service with the required skill. A professional accountant may not mislead his employer or client as to his level of expertise or experience. Where appropriate, clients or employers must be notified of any limitations that the professional accountant may have. In addition, Section 130 of the Code of Ethics for Professional Accountants requires a professional accountant to maintain professional knowledge and skill at a level required to ensure that a client or employer receives a competent professional service based on current developments in practice, legislation and techniques; and act diligently and in accordance with the applicable technical and professional standards. Professional accountants are expected to employ an inquiring mind to their work founded on the basis of their knowledge of the organisations’ financials. Their training in accounting enables them to adopt a pragmatic and objective approach to solving issues. Using their skills and intimate understanding of the organisation and the environment in which it operates, professional accountants in business must ask challenging questions. They are also the front runners when it comes to upholding the quality of financial reporting and providing the broader public with reliable financial information. Regardless of the level of assurance, the public assume that due diligence was taken into account when the professional accountant compiled the financial statements. Benevolence Trust for a professional accountant’s client involves having confidence that they will act in their best interest or refrain from taking advantage of them. The possibility that they might break this confidence introduces the element of risk, with a dash of fear and anxiety peppered into the mix. The greater the perceived risk, the harder it may be for the client to trust their accountant. Any debacle in the accounting profession raises the question of ethical behaviour and shines the spotlight on the responsibility of the professional accountant to maintain the balance between serving the public interest and that of their client. Professional Accounting Organisations (PAO) accredited by the International Federation of Accountants (IFAC) must be pro-active in their approach to any matter that may bring their institutes into disrepute as a result of the conduct of their members. Random checks and balances must be conducted on PAO members to ensure that they remain in good standing and a PAO should encourage the public to lay a complaint for investigation should they experience misconduct or unprofessional behaviour from any PAO member. Integrity The link between integrity and ethics is so intimate that the two concepts are often used as synonyms. In terms of section 110 of the Code of Ethics for Professional Accountants, obligation is imposed on all professional accountants to be straightforward and honest in all professional and business relationships. Integrity also implies fair dealings and truthfulness. In conclusion, gaining clients and public trust by a professional accountant requires openness, having the competence and consideration of what clients say is important to them, and making sure they provide that to the satisfaction of a client in an ethical manner. Trustworthiness is within our sphere of control, and consequently it is something that can be deliberately changed or cultivated. As a profession we are impacted by trust, let us try to restore it. Photo caption: Bongani Coka ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@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 Professional accounting gains more qualified individuals – Project Achiever plays central role21/6/2017  Author: Professor Rashied Small, Education, Training and Membership Executive, South African Institute of Professional Accountants (SAIPA)
The local accountancy industry has gained 271 new professional accountants, following the South African Institute of Professional Accountants’ (SAIPA’s) professional evaluation (PE) exam that was written in May by 363 qualifying candidates, of which 235 or almost 65% were black. Out of the black candidates, 163 passed, which equates to just over 69%. This translates to a 75% overall pass rate, this year the focus shifted to assessing the competence and business knowledge rather than the technical knowledge. The top ten Three of the national top ten candidates were participants in SAIPA’s competency-based training programme called Project Achiever, while seven were SAIPA trainees: Cheryl Smith - Midrand Crushaan Pieterse - Cape Town Janus Joubert - Pretoria Gerda Leone Bear - Midrand Minolen Govender - Midrand Hilda Afonso - Midrand Sannelie Peens - North West Bianca Treiber - Cape Town Khatija Khan - Durban Verna De Bod - Cape Town The quality and competence of the candidates should be revered, as they demonstrated the ability of providing simple, but technically sound solutions for integrated and complex business scenarios. Congratulations to the successful candidates, and for those who did not, I want to emphasise that the lessons you have learnt form part of the road to success. Transformation Project Achiever is considered to be at the root of the increase in the pass rate of the professional evaluation exam. Geared towards advancing transformation in the professional accounting industry, the programme is a joint initiative by SAIPA and the Finance and Accounting Services Sector Education and Training Authority (Fasset). The programme yield four candidates in the top 10 for the May 2017 exam, including the 2nd best candidates To date, four groups have attended the Project Achiever program, totaling 577 candidates achieving pass rates between 74% and 89%. The importance of competency-based training in the work environment Many professionals will agree that there is a big difference between academic learning and successfully applying the knowledge in the work environment. Competency-based training, which is the foundation of Project Achiever, is developed to assist candidates with the integration of academic knowledge with the softer skills required to build a successful career where the market require “thinking professional accountants”. These skills include communication (both written and verbal), problem solving skills, and critical thinking. Soft skills are not generally focused on during academic programmes, but they are crucial in the workplace. SAIPA’s competency-based training programmes The Project Achiever programme involves training on Saturdays over a period of 12 weeks prior to the professional evaluation exam. For students who don’t have access to the major centres where face-to-face training is provided, an online version of the Project Achiever training programme was launched earlier this year. The training is not subject-based, focussing instead on guiding the candidates in scenarios where they should apply their knowledge in an integrated manner to come up with the best possible solutions to business problems. Candidates will be guided in how to use the required soft skills like communication with clients, colleagues, and employers, decision making, team-working skills, creativity and problem solving skills and time management. In addition to the competency-based training, the candidates are also provided with guidance in exam technique. In the past, this was only provided in the face-to-face sessions, but webinars will be integrated into the online course to provide online candidates with the same assistance to pass the professional evaluation exam. Objectives of SAIPA’s competency-based training The competency-based training’s most important objective is to ensure the candidates are competent to perform the duties and responsibilities of professional accountant in terms of international benchmarks. The training aims to develop the applicants to apply their academic knowledge, not rigidly, but in a manner that enables them to come up with solutions to problems they might have to deal with in their coming career. The training also aims to teach candidates how to work effectively in multi-disciplinary teams. Career prospects for candidates Although all candidates are employed when they come onto the programme, their success in job offers and promotions are significant because of the soft skills and cognitive skills developed during the programme. Some examples are (a) candidates being promoted to Deputy Director posts in the public sector; (b) candidates receiving employment offers where their salaries are tripled; (c) candidates being promoted to senior positions in accounting practices; (d) candidates being offered junior partnerships in practices; (e) candidates successfully establishing their own practices. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@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  Author: Zobuzwe Ngobese, Marketing & Communications Executive,
South African Institute of Professional Accountants (SAIPA) The growth of a country, and an organisation, not only hinges on strategic goals and long-term vision, but on the youth that will one day populate its halls. The South African Institute of Professional Accountants (SAIPA) recognises the importance of investing in the next generation of accountants and has launched a new student membership platform to support students as they move through university and into careers as professional accountants. To ensure growth and sustainability, it is important to think about the future pipeline and engage with up and coming accountants while they are still at university. Our student membership has been designed to introduce students to the profession so they can grow to understand the landscape, be exposed to what happens in the profession and, most importantly, not have to wait until they qualify to experience the benefits of belonging to a professional body. SAIPA’s student membership has been structured with student needs and limitations in mind. As many are not earning their own income or salary, the fee has been made extremely accessible at only R100 per year. It allows them a full range of membership benefits alongside additional value-added partnerships which have been included specifically for the student market. It is a significant difference in price from the full membership fee paid by a qualified Professional Accountant (SA) which is R5,000 per annum, while still adding immense value to their personal and professional development. The right exposure Students taking advantage of the SAIPA student membership will be exposed to accounting firms that are looking for trainees, giving them opportunities for networking that would have been previously unavailable to them. Many professional members are accountants in practice and often look for article clerks or trainees to do articles, providing students with a chance to flex their skills and grow their portfolios. To become a Professional Accountant (SA), candidates first have to complete a Bachelor of Commerce degree, or equivalent, followed by three years of articles and then they have to write and pass the Professional Evaluation examination. Our student membership also allows students to attend some of our prestigious events, such as the annual SAIPA Budget Breakfast where experts analyse the national budget. They can go to these events for free and use them as opportunities to network and be exposed to many potential employers. SAIPA student members will receive copies of the two accounting magazines that are sent to full members as part of their membership package. They outline the latest trends in the accountancy profession, from both a local and global perspective and give students some much-needed insight into the profession. Then, to add even more value, SAIPA has engaged with various external partners and companies to round off its student offering. If you are a SAIPA member, you get a discount when you purchase your prescribed Juta textbooks from selected retailers. These is just one of the partners we have on board at the moment and we are currently engaging with other organisations to add to our student membership as we move forward. Leading the way We are not aware of any other professional body that is offering student membership at this time so, as far as we are concerned, we are breaking new ground by welcoming students into our fold so early on in their careers. It is a hugely progressive step that will ensure our profession grows sustainably by encouraging students to expand their skills and networks. To introduce students to the SAIPA offering, representatives of the organisation will be visiting various campuses around the country. Those students that are interested in joining will be automatically added to the student membership database and, once they pay the R100 fee, will become members of the organisation. Students interested in joining SAIPA can contact SAIPA directly to facilitate the process by emailing: studentmember@saipa.co.za By introducing this student membership, we are educating students on how broad the accountancy profession can be and that becoming a chartered accountant is not the only option. Students have responded incredibly well to what we are offering and we look forward to welcoming them to our organisation. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@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  Author: Bongani Coka, Chief Executive of the South African Institute of Professional Accountants (SAIPA)
With the Chinese economy slowing, commodity prices falling and the global economy stagnating, worldwide investment opportunities are scarce. But the last decade has seen a rising wave of optimism over Africa’s growth potential, and global investors are keen to uncover its riches. To realise its prosperity, Africa must first confront the obstacles that prevent investors from committing themselves. Accountants have a central role to play in confronting these obstacles and ensuring the development of Africa. The International Monetary Fund (IMF) suggests that although medium term growth prospects in Africa remains favourable, substantial improvement is required in the recalibration of fiscal policy (including the efficient use of national budgets), better domestic revenue mobilisation, and improving and prioritising the quality and efficiency of public investment. South Africa is in the green because our fiscal policy is sound. We just need to keep our budget in check to ensure government debt remains a low percentage of GDP. Our revenue is also being judiciously invested in infrastructure, with the top five government priorities being healthcare for all, better education, enhanced crime prevention, rural development, and job creation. In South Africa, public investment is lively, with the government spending a fair amount of its budget on social services and public infrastructure. However, we also face growth challenges. Corruption – real or perceived – is a threat to the continent’s development. Additionally, in South Africa, unemployment continues to be unacceptably high, not for lack of jobs but rather a skills shortage in specific sectors from which the field of accounting is not exempt. As for poverty and inequality, financial and human resources must be effectively deployed to address the following challenges, intimately linked to both conditions: optimising Africa’s natural resources, tackling illicit financial flows, increasing effectiveness of public expenditure, and attracting private funding. This is a daunting task if a country lacks the requisite skills to mobilise its resources. In spite of this, South Africa is well positioned to spearhead growth in Africa as envisioned by the IMF. Good resource management is one of the most effective ways to alleviate poverty. But it requires that those charged with the responsibility have the following core skills: good understanding of ethics and governance, good financial management, and transparency and accountability. A true accountant must have all these competencies. If even one is missing, they cannot prudently manage scarce resources, and poverty alleviation initiatives will suffer. In addition, as the people responsible for preparing information, auditing, consulting and advising, accountants are essential to the success of both the public and private sector in Africa. Weighty decisions are taken on their advice or the management information they prepare. It’s in the context of these opportunities and challenges that the accountant becomes a growth enabler. At the South African Institute of Professional Accountants (SAIPA), we try to counter these challenges by emphasising competency-based training, so that after students pass our professional evaluation exam, they are employable. They possess not just theoretical understanding but also the capability to solve real world problems as a practitioner, and so become go-to business advisers. Skills gaps exist in both the private sector and in government, particularly at the local government level. It is for this reason that SAIPA places a special focus on equipping the big metros to train students so they can do their articles in the public sector. For municipalities to be awarded a clean audit by the Auditor General’s office, they need highly skilled professional accountants who perform their duties without fear or favour. It’s encouraging that in the future, all municipal managers will have to earn a special qualification before being appointed to that position. Clean government starts with top-level leaders. Accountants are the champions of right record and should be beyond reproach. To continually earn this trust accountants must work tirelessly to maintain a faultless reputation and root out bad elements. Solutions such as the reversal of illicit financial flows, attraction of foreign direct investment, growth and development of the SME sector, and enhancement of the effectiveness of foreign aid, all depend on suitably qualified and regulated accountants. The main challenge facing the accountancy profession on the African continent and in South Africa is capacity building. Not only increasing the amount of available accountants, but elevating professionals to hold accountability, transparency, and good governance in highest regard. Strengthening the accounting profession and the public financial management capability are critical to this end. It takes strong, ongoing collaborative effort between all the stakeholders – academics, business, government, students and parents, accountants, and professional bodies that emphasise continuous professional growth, research and development, and compliance with best practice. Currently, more than 46% of African countries do not have a professional accounting organisation. Those that do are not yet functioning according to best practice. Ultimately, the role of the accountant is to provide indisputable financial structure and processes, unquestionable record of transaction, and incontestable strategic intelligence. When we can do this at scale, we will pave the way for investor confidence. Accountants therefore control the floodgates of prosperity in Africa, but it is by our integrity and effort that we earn the right to open them. PHOTO CAPTION: Bongani Coka, Chief Executive of the South African Institute of Professional Accountants (SAIPA) ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@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  The future bodes well for the South African accountancy profession as the top six learners achieved an average of more than 90% at the National Accounting Olympiad run by the South African Institute of Professional Accountants (SAIPA). Interestingly, the six came from four different provinces with the top pupil coming from KwaZulu Natal.
Muzaar Ahmed Malani from the Orient Islamic School in Durban, achieved the highest score, followed by Rhulani Ndlala from Merensky High School in Tzaneen and Simonè Balt from Hoërskool Linden, in Johannesburg. “As the South African Institute of Professional Accountants we are pleased with the results of the National Accounting Olympiad because they continue to show that there are pockets of excellence in our schools and that public schools continue to perform on par with private schools. This is an encouraging sign for the future of the Accountancy profession,” says Bongani Coka, the Chief Executive at SAIPA. The top three learners were followed by three learners who scored the same mark, namely; - Liam Roubach from De Kuilen High School in Cape Town. - Husnaa Motala, a pupil at Westville Girls High School, in Westville. - Raadiyyah Seedat from the Lenasia Muslim School in Lenasia. The annual Olympiad is open to all Grade 12 pupils in public and private schools studying Accountancy or Mathematics and aims to increase awareness among them of the importance of accounting to the South African economy, as well as the range of career opportunities available to them. The competition consists of two rounds, each consisting of a two-hour examination. The first round of 2016, written in May, saw 3510 pupils from 310 schools competing. A total of 980 learners, consisting of the top three learners in every region, qualified to enter the second round that took place on 27 July. “One of our key strategic objectives as the South African Institute of Professional Accountants is grow and transform the industry and the NAO provides us one of the platforms to do this in a sustainable way by investing in young talent. Next year we aim to raise the bar in terms of the number of high school students that we touch with the Olympiad and as such we will revamp the format to encourage more participation and we will work more closely with the Department of Basic Education,” adds Coka. The final round required candidates to deal with calculations, case studies, scenarios, financial statements, recording and posting procedures and more. Zobuzwe Ngobese Marketing and Communication Executive at SAIPA says those who achieved 65% or more during the first round of the Olympiad and qualified for the second round also received a printed exam study guide sponsored by Sage One, which also provided learners with valuable career and bursary information. “The exam guide is curriculum based and will therefore help learners to prepare for their matric accountancy exams later in the year. More importantly, as SAIPA we have been using the results of the Olympiad to also assist the poor performing schools because we do not only focus on those learners who have done well – our members who are professional accountants – have been using their time to provide extra classes to the struggling learners,” explains Ngobese. The competition has been running since 2002, with SAIPA’s focus being to provide papers and literature that can be used by all South African students, including those for whom English is a second language. It is an approach designed to lead to the abstract, higher order thinking required to solve problems – exactly the kind of issues accountants face in real life. The national and provincial winners will be honoured at a formal National Gala Awards Evening on the 12th of October. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@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  Author: Rashied Small, Education, Training and Membership Executive, South African Institute of Professional Accountants & Liezl Leleu, Professional Accountant (SA)
Many graduates approach the “new chapter in their career” with enthusiasm as trainees/clerks in the accountancy profession, but are often shocked when they encounter the reality and challenges on applying their “knowledge” in practice. These experiences of graduates are a clear indication of the “education-workplace” gap which is not unique to the accountancy profession but is becoming a global concern with numerous questions being raised by industry captains about the value of tertiary education. The reasons for the gap The “education-workplace” expectation gap may be attributed to firstly, the understanding of the workplace requirements by tertiary education leaders. Secondly, the disagreement on the responsibilities of education institutions and industry for the training and development of the learners; and thirdly, the extended process of changing academic programmes which may not accommodate the rapidly changing requirements of the workplace. Other causes include:
Current approach The short-term solution currently being implemented to address the gap in South Africa is to provide “work readiness programmes”. However, these programmes focus on developing the pervasive and inter-personal skills to facilitate the transition into the working environment. The long-term solution is to review the education and training as a continuum with a focus on an integrated approach that addresses the competence requirements of executing the critical work functions at the expected levels of proficiency. This requires a paradigm shift in the education environment with a change from the traditional teaching and learning system to competency-based education system (integration of technical knowledge and practical skills). Changing skills requirements The 21st century is abuzz with the concepts of “technology and connectivity” as the drivers of progress and development. The accountancy profession is no exception, long gone are the days of “pencil pushers and paper users” because technology such as accounting and financial reporting packages have changed the skills sets required from human resources. Technology has taken over the processing function (data conversion to financial information) as well as financial information analysis through artificial intelligence and “big data”. Furthermore, the shift in emphasis of financial reporting towards principle based reporting about the economic phenomenon of business transactions rather than rules based coupled with the demands for Integrated Reporting have placed even greater a premium on the cognitive skills of the professional in the accountancy profession. A consolidation of the aforementioned and, more importantly, for the relevance and survival of the professionals in the accountancy profession, it is an unequivocal requirement for changes to take place in the education and training. Way forward To close the gap educational leaders and captains of industry must work in a collaborative manner to develop and implement the following strategies:
Does this mean that the current education and training systems should be discarded – the answer is a definite “NO”, but they should be reviewed and adapted to meet the changing demands of the business environment and workplace expectations? Everyone claims that accounting and the related subjects are practical in nature, yet it is taught in a technical and theoretical manner often ignoring developing the skills required to apply it in the world of work. It is not a question of reducing the technical knowledge which is often blamed for information overload by academics, but focussing on the skills required to facilitate the process of engaging with the volumes of information. Partnership of collective sharing For education and training to be a continuum it is necessary for educational institutions and industry to form a partnership of collective sharing of responsibilities through a co-operative manner pursuing an integrated mandate. The development of employable and competent professional is not only key to the accountancy profession, but it is critical in addressing the risks such as fraud and corruption which are depriving business and the economy of the ethical responsibilities of ensuring sustainability and growth. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@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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