CEO's Note

Accountancy is among the ever-evolving, challenging professions that require mandatory continuous education. This continuous education may be a result of changing standards, environmental, legislation and policy amendments.

On the other hand, the challenges of this profession may also be a result of public outcry or scandalous transactional activities and shenanigans exposed in corporate and government institutions.

In 2023, the IFAC (International Federation of Accountants) standards-setting boards in the accountancy profession i.e., IAASB, IAESB, IESBA, and IPSASB released not less than four proposed changes in some of the standards.

The one that caught my attention was the International Auditing and Assurance Standards Board (IAASB) on its proposed sustainability assurance standard. The International Standard on Sustainability Assurance (ISSA) 5000, general requirements for sustainability assurance engagements, was considered a watershed moment for the accountancy profession in 2023.

The proposed amendments confirm that sustainability reporting has become a matter of global importance, and its reliability is a key issue for many stakeholders, including investors, regulators, ordinary citizens and nongovernmental organisations.This is because sustainability assurance can enhance the reliability of sustainability reporting and reduce the extent of “greenwashing”, helping entities drive towards net zero commitments and support the public interest.

Not only does this ever-changing, challenging and mandatory education force practising professionals to improve themselves but, perhaps importantly, also necessitates academics to fine-tune curricular and related assessments thereof.

It also means that professional bodies like the Southern African Institute of Government Auditors (SAIGA) have to influence these changes in the existing professional training programmes and through the Continuing Professional Development (CPD) programmes. One cannot practically and realistically conclude a full-year CPD programme due to the continuous changes in the accountancy profession.

For instance, the ISSA 5000 mandates changes in the core auditing curriculum during the pre-qualification phase, or the so-called “Initial Professional Development (IPD)”. It is common knowledge that some practitioners may have historically gone on to specialise in other types of assurance as their careers developed through CPD programmes.

In fact, IFAC suggests that the ISSA 5000 standard is likely to become a core element of all auditing education. What does this mean for existing auditing curricular at our universities? What about professional training programmes and examinations?

A journalist from a business publication sought my view on the recent “PhDGate” involving economist Thabi Leoka. For me, this ongoing saga has emphasised how important it is for boards of large corporations to adhere to a rigorous vetting process when appointing directors and accounting officers. What role should the auditors have played in a case such as this?

The bottom line is that the accountancy profession is not suitable for people who do not subscribe to continuous education, development and learning. When one completes an undergraduate, honours degree, and concludes their article-ship or learnership programme, this only puts them at the foothills of the accountancy professional peak they need to scale.

A greater challenge faces educators, especially SAIGA technical staff, as action is constantly required to support the development of initiatives i.e., the ISSA 5000 – the assurance capacity of our professionals with the necessary sustainability and sustainability assurance competencies to perform the proposed amendments in our standards.

The journey of an accountancy professional has many twists and turns. It is not for the lazy-minded and the indolent. A sustained professional development for our professionals is non-negotiable – even the SAIGA CPD policy stipulates the same.

Our professionals should not have excuses not to submit their annual mandatory CPD activities. Professional organisations ought to be critical of professionals who do not demonstrate the required level of continuous professional development in society. Society has invested its trust in professional bodies to represent public interest.

Enjoy SAIGA’s first edition of Auditing SA magazine in 2024. Keep adding value to the public sector, organisations, society, and your clientele.

Happy reading! 

Russel Morena

SAIGA CEO