CAs responsible for SA’s rating as world auditing and financial reporting champion

 

Matsobane Matlwa, chief executive of the South African Institute of Chartered Accountants (SAICA), said in Johannesburg yesterday that South Africa’s first place ranking in the WEF’s “Strength of Auditing and Reporting Standards” category was an achievement of which the nation could be justifiably proud.

“It is well worth noting that so impressive an acknowledgement could only be achieved by constantly raising standards. It is this that drives worldwide demand for South African chartered accountants [CAs (SA)]. I recognise and applaud all CAs (SA). Without them, we could not have earned the auditing and financial reporting world champions accolade.”

Matlwa drew attention to the apparent irony of high standards having been actually accompanied by an expanding CA (SA) population. He suggested that several factors accounted for the phenomenon, with the principal motivation having been the quest to acquire a designation that was held in high esteem both domestically and internationally.

“We have found that the higher the standard, the greater the desire among prospective CAs (SA) to pass the extraordinarily tough examinations and to complete their learnership requirements,” Matlwa said, citing the growing number of black CAs (SA) as another factor in the overall increase in CAs (SA). “Few appreciate the great lengths to which we as a profession have gone to bolster our pool of black CAs (SA) – lengths that include full bursaries and focused training programmes.

“That is why the percentage growth in the number of black CAs (SA) has been so impressive, though one must appreciate that it has been from a small base,” he continued. Thus, since 2002 the CA (SA) population had grown by 49% to 31 165, with black CAs (SA) having reflected a 237% increase to 5 302 and the numbers of white CAs (SA) having expanded by 34% to 25 863.

Matlwa stressed that the rapid growth in black CAs (SA) had in no way detracted from the rising number of white CAs (SA) entering the SAICA ranks. “We are, essentially, looking at catch-up situation, with black South Africans starting to redress the unconscionable gap between them and their white colleagues. All in all, we should view the CA (SA) canvas from the standpoint that any growth in the number of South Africans, irrespective of colour, becoming chartered accounts is economically beneficial.”

He said that the overriding goal was to reduce the shortage of CAs (SA). In 2007, prior to the economic recession, SAICA had estimated, based on a commissioned study, that there was a shortfall of 5 000 CAs (SA). The sooner significant inroads were made into that statistic, the better the chances of prosperity for all.
“The importance of the CA (SA) to our economy is that significant,” Matlwa said.

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