Compliance Responses and Action Plans

  • Compliance Responses and Action Plans

    IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

    Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

    In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

    The South African Institute of Professional Accountants

     

    Introduction

    The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

    Part 1: Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
    Part 2: Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

    The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

    The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

    1. Setting auditing, accounting, ethics, public sector and education standards; and
    2. Regulating the accountancy profession.

    Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

    Questions or comments may be sent to complianceassessment@ifac.org.


    Section 3 -- Member Body General Information

    1. Country:

      Republic of South Africa


    2. Name of member body:
      The South African Institute of Professional Accountants

      Or please specify name:



    3. Individual responsible for preparation:
      Nicolaas van Wyk


    4. Date member body became a member of IFAC:
      Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

      11 / 1995



    Questions 5 - 22 are for internal use only


    Section 3G -- Affiliations


    23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):
      IFAC, ECSAFA



    Section 4 -- Statutory Framework


    Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

    Section 4A -- The Companies Act or Commercial Code


    The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

    24. What is the full name of:
      a). the Act or the Code: Companies Act,1973 (Act 61 0f 1973); Close Corporations Act, 1984 (Act 69 of 1984); Public Finance Management Act 1999 (Act 1 of 1999);
      b). the Enacting body: Department of Trade and Industry; National Treasury
      c). date the Act or Code came into force: /


    25. How can IFAC obtain a copy of the Act or Code?
      From www.acts.co.za


    26. Is the Act or Code available in English?
      Yes   No


    27. What are the types of entities covered by the Act or the Code?
      Please check all that apply.
      Listed entities   Other (please specify): Close Corporations
      Private companies   Other (please specify):
      Governmental   Other (please specify):
      Not-for-profit   Other (please specify):


    28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities S A GAAP / IFRS from 2005
      Private companies S A GAAP
      Governmental GRAP
      Not-for-profit S A GAAP
      Other (please describe) Close Corporations S A GAAP appropriate to the business of the Corporation.
      Other (please describe)


    29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities Companies Act,1973 (Act 61 0f 1973); ISAs from 2005
      Private companies Companies Act,1973 (Act 61 0f 1973); ISAs from 2005
      Governmental Public Finance Management Act 1999, Act 1 of 1999; Auditor-General Act 1995 (Act 12 of 1995)
      Not-for-profit Companies Act,1973 (Act 61 0f 1973); SAAS
      Other (please describe) Close Corporations
      Other (please describe) Close Corporations


    30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    31. Who appoints the statutory auditors?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify): Registrar of Companies under certain circumstances
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    32. Does the Act or Code require joint auditors for the statutory audit?
      Yes   No
      If yes, please describe the requirement:
      Banking institutions have joint auditors in terms of the Bank Act.


    33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?
      Yes   No
      If yes, please describe the requirement:



    Section 4B -- Securities Market Regulations


    Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

    34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:
    1. the major items of Legal authority for such requirements

      Companies Act, 1973 (Act 61 of 1973); Marketable Securities Tax Act, 1948 (Act 32 of 1948); Securities Exchanges Control Act, 1985 (Act 1 of 1985)

    2. the Enacting body(ies)

      Department of Trade and Industry;
      National Treasury;
      Johannesburg Stock Exchange.

    3. the latest amendment date?

      Companies Act last amended by Act 39 of 2002.Audit sections 269, 270, 274, 276,Form CM 31
      Marketable Securities Act amended by Act 74 of 2002
      Stock Exchanges Control Act amended by Act 40 of 2002, Sections on auditing 43 & 44
      JSE Listing Requirments South Africa - 31 December 2003


    35. How can IFAC obtain a copy of the Legal authority?
      From www.acts.co.za

      The parliamentary website is: http://www.parliament.gov.za/pls/portal/web_app.new_middle_column?p_page_name=HOME_PAGE

      The JSE website is: http://www.jse.co.za/intro_main.jsp


    36. Is the Legal authority available in English?
      Yes   No


    37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?
      Yes   No
      If YES, please describe the requirement:
      JSE Securities Exchange Listing Requirements and see section 10 for Banks and Financial Institutions


    38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?
      Yes   No
      If YES, please describe the requirement:
      Section 8 of the JSE listing requirements lays out additional reporting responsibilities for the auditor (for example, disclosure requirements relating to initerim reporting, additional disclsosures relating to borrowings, earnings per share, King Code (corporate governance) etc). Refer section 8.63 and 8.64 of the Requirements.


    39. Who appoints the statutory auditors of listed entities?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify): Registrar of Companies, in certain instances
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    40. Are auditors who perform audits of listed entities appointed for a specified period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    41. Are joint auditors required for audits of listed entities?
      Yes   No
      If YES, please describe the requirement:
      In certain industries, joint auditors are required, but this is governed by industry specific acts (see Banks Section 10)


    42. Is rotation of the auditor or audit firm for audits of listed entities required?
      Yes   No
      If YES, please describe the requirement:



    Section 5 -- Auditing Standards


    Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 5A -- Statutory Framework


    43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:
      Type of entity Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting audit and
      other assurance standards
      Listed entity
      Other (please describe) Public sector entities Legal Authority: Public Audit Act Not available Auditor-General / International Organisation of Supreme Audit Institutions
      Other (please describe) Entities that require the appointment of a Registered Accountant and Auditor as per section 14 (a) and (b) of the PAA Act Public Accountants' and Auditors' Act, 1991 (Act 80 of 1991) 06/1991 Auditing and Assurance Standards Board
      Other (please describe) Entities that require the performance of an audit as per section 14 (ii) - (v) of the PAA Act i.e Audit performed by a person not registered with the PAAB. Self-regulatory rules determined by Professional bodies Not available IFAC - professional bodies could prescibe IFAC auditing standards

      a. How can IFAC obtain copies of these documents?

      PAA Act - www.paab.co.za/Legal/Public Accountants' and Auditors' Act, 1991 (Act 80 of 1991)(PAA Act expected to be repealed in 2005 when Draft Auditing Profession Bill is enacted)(Previously known as Accounting Profession Bill)
      South African Auditing Standards - www.paab.co.za/Auditing Standards/Auditing Pronouncements (ISAs to be adopted from 1 January 2005)


      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (Auditor-General / International Organisation of Supreme Audit Institutions)


    44. For Auditor-General / International Organisation of Supreme Audit Institutions, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Auditor-General
      Independant State Institution

      The standards are set by the International Organisation of Supreme Audit Institutions


      b. Name of standards

      Generally Accepted Government Auditing Standards


    45. How many voting members does the standard-setting body have?
      www.intosai.org


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: www.intosai.org


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Refer to INTOSAI at www.intosai.org


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Refer to INTOSAI at www.intosai.org


    49. What is the term of appointment for members?
      Year(s)


    50. For how many years has the standard-setting body been in existence?
      Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      www.intosai.org

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      www.intosai.org



    52. To what entity is the standard-setting body accountable?
      Refer to INTOSAI at www.intosai.org


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Refer to INTOSAI at www.intosai.org

    2. accessibility of meetings (i.e., public or private)

      Refer to INTOSAI at www.intosai.org

    3. approval process for final standards (i.e., majority required to approve final standards)

      Refer to INTOSAI at www.intosai.org

    4. other relevant due process activities

      Refer to INTOSAI at www.intosai.org


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)


    Section 5B -- Standard-Setting (Auditing and Assurance Standards Board)


    44. For Auditing and Assurance Standards Board, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Statutory body (formed by virtue of the Public Accountants' and Auditors' Act, 1991)

      b. Name of standards



    45. How many voting members does the standard-setting body have?
      18


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Best person for the job, sector of the profession, public practice (large and small firms), commerce and industry.
      Section 3 of the PAA act determines the type of persons the board shall consist of.


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The Public Accountants' and Auditors' Board


    49. What is the term of appointment for members?
      3 Year(s)


    50. For how many years has the standard-setting body been in existence?
      53 Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      24,000

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      7,00



    52. To what entity is the standard-setting body accountable?
      The Public Accountants' and Auditors' Board


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Exposed for 2-3 months

    2. accessibility of meetings (i.e., public or private)

      Meetings are held in public and private sessions

    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority vote is required to approve final standards

    4. other relevant due process activities

      Established a Consultative Advisory Group (CAG)


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      4 Day(s)


    Section 5B -- Standard-Setting (IFAC - professional bodies could prescibe IFAC auditing standards)


    44. For IFAC - professional bodies could prescibe IFAC auditing standards, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      IFAC

      b. Name of standards

      ISA


    45. How many voting members does the standard-setting body have?
      Refer: IFAC website: www.ifac.org


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Refer: IFAC website: www.ifac.org


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Refer: IFAC website: www.ifac.org


    49. What is the term of appointment for members?
      Year(s)


    50. For how many years has the standard-setting body been in existence?
      Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Refer: IFAC website: www.ifac.org

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      Refer: IFAC website: www.ifac.org



    52. To what entity is the standard-setting body accountable?
      Refer: IFAC website: www.ifac.org


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Refer: IFAC website: www.ifac.org

    2. accessibility of meetings (i.e., public or private)

      Refer: IFAC website: www.ifac.org

    3. approval process for final standards (i.e., majority required to approve final standards)

      Refer: IFAC website: www.ifac.org

    4. other relevant due process activities

      Refer: IFAC website: www.ifac.org


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 6 -- Ethics


    Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 6A -- Statutory Framework


    55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.
      Type of professional covered Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting ethics standards
      Professional Accountants in Public Practice Self regulatory rules: CFA Handbook 06/2003 Institute of Commercial and Financial Accountants of Southern Africa
      Professional Accountants in Business Self regulatory rules: CFA Handbook 06/2003 Institute of Commercial and Financial Accountants of Southern Africa
      Professional Accountants in the Public Sector
      Other (please describe) PAAB and SAICA PAAB: Legal authority , SAICA: Self regulatory rules 10/2002 PAAB , SAICA

      a. How can IFAC obtain copies of these documents?

      www.cfa-sa.co.za, member resources, technical guides, constitution
      www.paab.co.za
      www.saica.co.za


      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (Institute of Commercial and Financial Accountants of Southern Africa)


    56. For Institute of Commercial and Financial Accountants of Southern Africa, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Association of persons - Professional Accounting Body established by the Profession

      b. Name of standards

      CFA Handbook:
      Rules of Professional Conduct
      Constitution and By-laws


    57. How many voting members does the standard-setting body have?
      Standards are determined by the Council of the CFA(SA). The Council has 14 voting members


    58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Private and public members.

      A maximum of 12 members may be elected from time to time by members in terms of voting procedures.

      A further maximum of 8 persons, not necessarily members, may be appointed annually, by Council, to serve the interests of the members of the Institute.

      Subject to the above maxima, Council shall determine the number to be appointed or elected.


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      A maximum of 12 members may be elected from time to time by members in terms of voting procedures.

      A further maximum of 8 persons, not necessarily members, may be appointed annually, by Council, to serve the interests of the members of the Institute.

      Subject to the above maxima, Council shall determine the number to be appointed or elected.


    61. What is the term of appointment for members?
      3 Year(s)


    62. For how many years has the standard-setting body been in existence?
      22 Year(s)


    63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      64615

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      6,50



    64. To what entity is the standard-setting body accountable?
      As the Council is voted into power via the Institutes' members, the Council is ultimately accountable to the members of the Institute.

      The CFA(SA) does not have a seperate standard setting body. The Council of the Institute determines the ethical standards.


    65. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      The Council of the CFA(SA) acts as the standard setting body. Proposed standards are issued to members to invite commentary or members may request in writing for the addition of or changes to standards.
      The Council may, on receipt of a written requisition by not less than twenty members in good standing, call a special general meeting of the Institute. The notice calling a requisitioned meeting shall be issued by the Council within thirty days of the receipt of the requisition and such meeting shall be held at the Head Office of the Institute at such time and date as the Council may determine but no later than 60 days following receipt of the requisition.


    2. accessibility of meetings (i.e., public or private)

      Private

    3. approval process for final standards (i.e., majority required to approve final standards)

      At all meetings of the Institute the President of the Institute for the time being or, in his absence, one of the Vice Presidents of the Institute, agreed amongst themselves or if they disagree then a Vice President chosen at the meeting by the members so to act, shall be the chairman; in their absence, the chairman shall be elected from among the Council members present.
      If there is no Council member present, the chairman shall be elected from among the members of the Institute present.

      Every member in good standing of the Institute shall be entitled to be present and to vote at a special general meeting. The quorum at such meeting shall be twenty members personally present or represented by proxy. If no quorum is present within fifteen minutes after the appointed time of the meeting, the meeting shall stand adjourned for one week to be held at the same time and place unless the meeting shall have been convened on the requisition of members in terms of the Constitution, in which case the meeting shall be dissolved.

      All voting at a special general meeting shall be by poll by those members present in person or by proxy. Proxies in the form laid down by the Council shall be lodged at the head office of the Institute not less than 48 hours before the time of the meeting.

      Every motion proposed and seconded at a Special General Meeting of the Institute shall be decided by a poll. A poll demanded on the election of a chairman or on the question of adjournment shall be taken forthwith. A poll demanded on any other question shall be taken at such time as the chairman of the meeting directs. The demand for a poll shall not prevent the continuation of a meeting for the transaction of any business other than the question upon which the poll was demanded. In the event of a deadlock the chairman of the meeting shall be entitled to a casting vote but shall not be obligated to exercise same.

      A poll shall be taken in such manner as the chairman directs and the result of the poll shall be deemed to be the resolution of the meeting. Scrutineers, not being proposers or seconders of the resolution, shall be appointed by the chairman of the meeting to declare the result of the poll and their declaration, which shall be announced by the chairman of the meeting, shall be deemed to be the resolution of the meeting at which the poll was demanded, and an entry to that effect in the minutes of the proceedings shall be conclusive evidence of the result.


    4. other relevant due process activities



    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      5 Day(s)


    Section 6B -- Standard-Setting (PAAB , SAICA)


    56. For PAAB , SAICA, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Refer SAICA submission.

      b. Name of standards

      Refer SAICA submission.


    57. How many voting members does the standard-setting body have?
      Refer SAICA submission.


    58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: Refer SAICA submission.


    59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Refer SAICA submission.


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Refer SAICA submission.


    61. What is the term of appointment for members?
      Year(s)


    62. For how many years has the standard-setting body been in existence?
      Year(s)


    63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Refer SAICA submission.

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      Refer SAICA submission.



    64. To what entity is the standard-setting body accountable?
      Refer SAICA submission.


    65. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Refer SAICA submission.

    2. accessibility of meetings (i.e., public or private)

      Refer SAICA submission.

    3. approval process for final standards (i.e., majority required to approve final standards)

      Refer SAICA submission.

    4. other relevant due process activities

      Refer SAICA submission.


    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 7 -- Education


    Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

    Section 7A -- Education Requirements


    67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:
      School education is compulsory from the age of seven years until the last day of the school year that the learner reaches the age of fifteen years or the ninth grade, whichever occurs first.

      School education includes primary education (Grades 1 - 7) and secondary education (Grades 8 - 12).

      At tertiary education level (higher education) learners can choose to either attend a Technikon or an University.

      In line with the SAQA Act No.58 of 1995, South Africa adopted a national Qualifications Framework (NQF. Technikon qualifications are generally on levels 3 - 6 and University qualifications on levels 6 - 8.

      The objectives of the NQF are as follows:

      - To create an integrated national framework for learning achievements;
      - Facilitate access to, and mobility and progression within education, training and career paths;
      - Enhance the quality of education and training;
      - Accelerate the redress of past unfair discrimination in education, training and employment opportunities;
      - Contribute to the full personal development of each learner and the social and economic development of the nation at large.


    68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?
      Yes   No

      If YES, please provide the name and describe the requirements, including any relating to education, experience or qualifications.

      A ministerial panel was appointed during 2003 to advice the Minister of Finance on the proposed
      The Accounting Professions Bill. The aim of the proposed bill was to regulate, set minimum standards and distinguish between the functions performed by Auditors as opposed to those performed by Accountants. Based on recommendations made by the panel the name of the bill was changed to the Auditing Profession Bill. The new bill seeks to regulate only the auditing profession.

      On the 24th of March 2004 the Minister of Finance issued a statement on the recommendations made by the ministerial panel for the review of the Accounting Professions' bill.

      The complete statement can be obtained form www.treasury.gov.za, press releases.

      The following paragraphs in the statement are of particular importance to CFA (SA) members as they reflect the minister's view on:
      - regulating accountants
      - legal backing for accounting standards and,
      - auditor-accountant distinction

      Regulating accountants
      In supporting the recommendation that auditors should be regulated separately
      from accountants, the Minister indicated that a holistic approach to improving
      corporate governance would be critical.

      Legal backing
      Legal backing for accounting standards should be simultaneously introduced with legislation to regulate auditors and increase the liability of management with regard to the presentation of financial statements. This would require amendments to the Companies Act, 1973, the promulgation of the Financial Reporting Bill and the establishment of a new system for regulating auditors.

      Auditor-Accountant distinction
      The Minister did not accept the recommendation that no minimum statutory prohibitions be placed on consulting services. There should be flexibility in regulation allowing for further prohibitions to be introduced or repealed by the new regulatory authority.
      The reason underlying this is that there are certain services that should never be performed by the external auditor for the client. Examples include book keeping, accounting and internal audit.

      However the current position with regards the education, experience and qualification requirements is as follows:

      Auditors
      In terms of the Public Accounts and Auditors Act the Public Acountants and Auditors Board determines the minimum requirements to be allowed to use the term, as the PAA act defines it, Registered Accountant and Auditor.

      Currently most acts require that the attest funstion be performed by a person registered with the PAAB. The main act in this regard is the Companies Act.

      However the PAA act (Section 14 (iii)) does provide that a State Minister charged with the administration of any law may authorise or appoint, any person not registered with the PAAB, to act as auditor in respect of any undertaking regulated by that law. For example the Sectional Titles act 95 of 1986, under certain conditions, allows an Accounting Officer to perform the attest function.

      Accountants
      Currently these requirements are set by individual professional accounting institutes as self-regulatory bodies. The CFA(SA)requirements are summarised under question 69 of this submission.
      However various acts require the appointment of an Accounting Officer to perform a reporting function. The Accounting officer report is a hybrid report. It is a combination of a Compilation and Assurance report.

      The Close Corporation Act determines by way oif regulation who may act as an Accounting Officer. In general a person must be a member of one of the professional accounting institutes.

      Acts that require the appointment of an Accounting Officer include the:
      - Close Corporations Act
      - Schools Act
      - Sectional Titles Act
      - Non-Profit Organisations Act

      These acts can be viewed at www.acts.co.za


    69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.
      Academic requirements
      Membership of the CFA(SA) is dependent on a person having satisfied three distinct requirements - academic, practical and a professional evaluation.
      1) The academic component may be fulfilled by completing a:
      - BComm degree at a university or a
      - National Diploma at a Technikon
      The degree or diploma must consist of relevant specified subjects. These include Accounting, Tax, Auditing and Commercial Law.
      The diploma requirement is currently under review.
      Professional examinations
      A Professional Evaluation must still be satisfactorily completed before Registration as a Member of the CFA(SA). The Professional Evaluation is competency based. It consists of a three hour written evaluation but unlike entrance exams conducted by a variety of organisations across the professional spectrum, the Professional Evaluation is a system to judge the competence of prospective members.
      Practical experience
      The practical component consists of either a:
      - three years supervised training at an Approved Training Centre. The training is monitored by way of a logbook which is kept up to date by the trainee and training officer. Every six month of the trainees employment the trainee has to complete a Electronic Simulated Assessment (ESA). This is based on the Logbook and the practical experiance of the last six months. The ESA is assessed by the Training Officer. The Training Officer submits the result sheet to the Institute. Within a three year period the Training Officer is moderated to determine the quality of training and results achieved. The three years supervised practical training must be registered as a Learnership with Fasset, a Sector Education and Training Authority established by the State (Department of labour).

      or
      - six years relevant verifiable experience. Experience will be verified by the completion of a logbook.
      The logbook requires confirmation by current and previous employers.
      Final qualifying examination
      Other (please describe)
      (CPE) was introduced in 1999. All members must achieve 120 hours of CPE over a three year period. The CFA assists in this regard by offering a Continuous Professional Development seminar programme offered regularly throughout the country.


    70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.
      A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
      A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
      Member body(ies) establishes the education requirements for the accounting profession.
      Other (please describe) Established by CFA(SA) and accredited by the State


    71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.
      The Education committee (EDCOM) fo the CFA(SA) as approved by the Council of the CFA(SA)establishes the educational requirements for members of the CFA(SA). These reaquirements are then accredited by the South African Qualifications Authority (SAQA) and the Sector Education and Training Authorities (SETA).

      The PAAB determines education requirements for Registered Accountants and Auditors in terms of the PAA act. The PAAB is a statutory body.

    1. A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.

      The Education committee of the CFA(SA) is tasked with advising CFA on matters relating to education, training and development. The Council of the CFA(SA) ultimately approves the recommendations.

      The committee will advise CFA in respect of the following:

      - Registration and administration of Learnerships
      - Managing, training and development issues as related to Trainee Accountants
      - Research and development of logbooks
      - Monitoring and evaluation of the electronic assessment processes
      - Managing and evaluating Approved Training Centres
      - Regulating relationships with tertiary training institutions

    2. How many voting members does the relevant body(ies) have

      The Council may appoint members to the committee from Council, Secretariat and other members of the Institute. The chairman is appointed by Council.
      The committee will consist of members from:
      - Tertiary institutions
      - Commerce and Industry
      - Public Practice
      - Secretariat: Representatives from the training, development and technical departments Public sector enterprises
      - The CEO, ex-officio

      The committee may choose to co-opt specialists into the committee, should they deem it necessary.

    3. Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:

    4. For how many years has the body been in existence?

      22 Year(s)


    72. How would you describe the authority that the education requirements have?
      Requirements are legally-based
      Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
      Requirements are set in member body(ies) policy document(s).
      Other (please describe)

    72 a. How can IFAC obtain copies of these documents?
      Contact the CEO at ceo@cfasa.co.za

    72 b. Are these documents available in English?
      Yes   No


    73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?
      Same   Different
      If different, please briefly describe the main differences:


    74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.
      The education program and final examination are delivered by the member body.
      The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
      The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
      Other (please explain) Edu.program: edu.institutions / Exam: member body


    75. Once qualified as a member of your professional body, can members offer their services directly to the public?
      Yes   No



    Section 7B -- Licensing


    76. Are there licensing requirements for auditors in your country?
      Yes (continue with Question 77)   No (proceed to Section 8)


    77. Who sets the requirements to obtain a license?
      The Public Accountants' and Auditors' Board (PAAB)does not licence persons to act as Registered Accountants and Auditors.

      A persons that whishes to perform the duties of a Registered Accountant and Auditor must become a member of the PAAB.


    78. What are the requirements to obtain a license (please select all relevant requirements.)?
      Academic study specific for obtaining a license
      Practical experience
      Licensing examination
      Final qualifying examination
      Other (please describe)


    79. Are there ongoing requirements to retain a license?
      Yes   No

      If YES, please select all relevant requirements.
      Continuing professional development
      Re-examination
      Other (please specify):


    80. What entity grants the license?


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).



    Section 8 -- Public Sector Accounting Standards


    Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

    Section 8A -- Statutory Framework


    82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.
      Type of entity Name of
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting public sector
      accounting standards
      Whole of government Section 216 of the Constitution of the RSA and the Public Finance Management Act 06/1999 Accounting Standards Board
      Ministry/department Section 216 of the Constitution of the RSA and the Public Finance Management Act 06/1999 Accounting Standards Board
      Statutory authority/agency Section 216 of the Constitution of the RSA and the Public Finance Management Act 06/1999 Accounting Standards Board
      Profit entity owned by government Section 216 of the Constitution of the RSA and the Public Finance Management Act 06/1999 Accounting Standards Board
      State governments Section 216 of the Constitution of the RSA and the Public Finance Management Act 06/1999 Accounting Standards Board
      Local governments Municipal Finance Management Act 2003 Accounting Standards Board
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      www.acts.co.za

      The Accounting Standards issued by Accounting Standards Board (ASB) can be obtained from the ASB website www.asb.co.za
      Copies of the Act are available in the South Africa Treasury website www.gov.za


      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (Accounting Standards Board)


    83. For Accounting Standards Board, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      The ASB was established by section 91 of the Public Finance Management Act with the aim of setting Accounting Standards for Public Sector. The body operates under the South Africa National Treasury department. It is fully funded by the Government.ASB was formed in year 2002.

      b. Name of standards

      Standards of Generally Recognised Accounting Practice (GRAP).
      Section 55 of the PFMA requires public entities to prepare financial statements in accordance with GAAP, unless the ASB approves the application of GRAP for that public entity.


    84. How many voting members does the standard-setting body have?
      10


    85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      The Minister of Finance in consultation with the Auditor-General appoints the Board.
      Members are appointed in their individual capacity and not as representatives of organisations.


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The Minister of Finance in consultation with the Auditor-General appoints the Board.


    88. What is the term of appointment for members?
      3 Year(s)


    89. For how many years has the standard-setting body been in existence?
      2 Year(s)


    90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      624,573

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      7,00



    91. To what entity is the standard-setting body accountable?
      The National Treasury - Ministry of Finance


    92. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards



    2. accessibility of meetings (i.e., public or private)

      Members of public are allowed to attend the board meeting as observers.
      Members are also encouraged to participate in the work groups that draft the standards


    3. approval process for final standards (i.e., majority required to approve final standards)

      Refer point a:
      8. The draft of a Standard, duly revised after the exposure period, is submitted
      to the Board for approval. If approved by the Board, it is issued as a Standard and becomes effective from the date specified in the Standard. On occasion, where there are significant unresolved issues associated with an Exposure Draft, the Board may decide to re-expose a proposed Standard.
      9. For the purposes of approving an Exposure Draft or a Standard, each Board
      member represented on the Board has one vote. A quorum of six members is required. If a Standard is approved by at least three quarters of the total voting rights present at a meeting, the pronouncement is published and released. Exposure Drafts are approved by at least a majority of the total voting rights present at a meeting.


    4. other relevant due process activities

      Refer point a.


    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      6 Day(s)



    Section 9 -- Private Sector Accounting Standards


    Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

    Section 9A -- Statutory Framework


    94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.
      Type of entity Name of legal
      authority or
      applicable
      rules
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting private sector
      accounting standards
      Listed entity Companies Act 1973 Accounting Standards Board
      Other (please describe) Other entities Companies Act 1973 Accounting Standards Board
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Companies Act is available on www.acts.co.za
      Accounting Standards are available from the IASB.


      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (Accounting Standards Board)


    95. For Accounting Standards Board, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      A private organisation established by the profession. SAICA is the secretariat.
      South Africa has adopted International Financial Reporting Standards (IFRS) issued by the IASB, therefore the Accounting Practices Board(APB) does not set standards, but follows due process before approving them for South Africa.


      b. Name of standards

      Statements of Generally Accepted Accounting Practice


    96. How many voting members does the standard-setting body have?
      18


    97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Appropriate representative constituent bodies of South Africa are selected. These constituent bodies appoint members and alternates to the Board, who have to be Chartered Accountants.


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Constituent bodies are appointed if all members approve them. The body nominates a member and alternate to attend all meetings, which is approved by the Board.


    100. What is the term of appointment for members?
      2 Year(s)


    101. For how many years has the standard-setting body been in existence?
      20 Year(s)


    102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      65,000

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      6.5



    103. To what entity is the standard-setting body accountable?
      South African Institute of Chartered Accountants (SAICA)


    104. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      The Accounting Practices Committee develops the accounting standards which are forwarded to the Accounting Practices Board for approval. The CFA(SA) is represented on the APC.
      Exposure drafts are issued to invite commentary on proposed pronouncements for a comment period of 90 days. Comment letters are publicly available.
      A South African commnet letter on the international exposure drafts is submitted to IASB. Where no international equivalent exists proposed local pronouncements are issued by the APC for comment within 60 days.


    2. accessibility of meetings (i.e., public or private)

      From November 2004, meetings will be held in public.

    3. approval process for final standards (i.e., majority required to approve final standards)

      First time presented to Board - unanimous approval from all members. If unanimous approval not obtained, 80% of members next time re-presented.

    4. other relevant due process activities



    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      4 Day(s)



    Section 10 -- Monitoring (Quality Assurance) and Enforcement


    Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

    Section 10A -- Securities Market Regulatory Authority


    106. Name the authority that regulates the securities market:
      Johannesburg Stock Exchange (JSE)as per Stock Exchanges Control Act (Act 1 of 1985)


    107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:
      In terms of the Companies Act, must appoint an Auditor registered as such in terms of the Public Accountants and Auditors Act 1991 (Act 80 of 1991).

      The GAAP monitoring panel, which is a joint initiative between SAICA and the JSE, monitors and enforces compliance with accounting standards.


    108. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      None

    2. accounting and auditing standard-setting

      None

    3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements

      The GAAP Monitoring Panel operates on a complaints received basis where the financial statements of a listed entity would be investigated based on being alerted to the fact that there appears to be a contravention of the accounting standards.



    Section 10B -- Stock Exchange


    109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:
      Profit Not
      for
      profit
      Stock Exchange
      Johannesburg Stock Exchange (JSE)



    Section 10B -- Stock Exchange
    Johannesburg Stock Exchange (JSE) Details


    110. For Johannesburg Stock Exchange (JSE), is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

      Submission of half yearly reporting of results and annual audited financial statements and reports and compliance to the Compancies Act and other related Acts. The GAAP Monitoring Panel operates on a complaints received basis where the financial statements of a listed entity would be investigated based on being alerted to the fact that there appears to be a contravention of the accounting standards.

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      For companies - restatement of financial statements

    3. How enforcement actions are administered.

      By the JSE Securities Exchange Listings Division By SAICA and the PAAB - Disciplinary Committees



    Section 10C -- Regulatory Oversight of the Accounting Profession


    111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?
      Yes   No

      If NO, proceed to the next section.

      If YES, please describe :

    1. What are the name and duties of the oversight body?



    2. The number of members on the oversight body



    3. Its powers



    4. How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations

      Section 22A of Act provides for the review of the practice of a PAAB registered accountant and auditor and take disciplinary action (section 23)

    5. The sanctions the oversight body may impose in the event of non-compliance

      Levy fines or prescribed punishment, including suspension.

    6. How the oversight body is accountable to any public institution or body

      Submit within six months of its financial year a report to the Minister of Finance.


    Section 10D -- Banks Regulatory Authority


    112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:
      Office of Banks as part of the SA Reserve Bank, headed by an employee (Reistrar) in the service of the SA Reserve Bank. Reporting is done as required by the Bank Act 1990 (Act 94 of 1990) and the Companies Act 1973 (Act 61 of 1973)and must comly with GAAP.


    113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:
      Banks must have at least one auditor. If total assets exceed R10 000 000 000, it must have at least two independent auditors. Registrar must approve the appointment/s or appoint Auditor/s himself. Accounting Standards compiled by ASB and Auditing Standards by APB.


    114. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      Registrar of Office of Banks must approve or appoint Auditors who is registered as such with the Public Accountants and Auditors Board.

    2. accounting and auditing standard-setting

      Representation on the ASB and APB

    3. review of financial statements prepared by listed entities



    4. enforcement of accounting, reporting and auditing requirements

      Through the Banks Act and Regulations



    Section 10E -- Non-Banking Financial Institutions Regulatory Authority


    115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.
      Financial Services Board


    116. What is the source of Legal authority of the regulatory authority(ies)?
      Financial Services Board Act,1990 (act 97 of 1990)and Financial Advisory and Intermediary Services Act 37 of 2002.


    117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:
    1. regulation of the audit profession

      If and when required, appointment of persons registered with the Public Accoutants and Auditors Act and approved by the Registrar.

    2. accounting and auditing standard-setting

      Financial statements in comformity with GAAP. Audits to be done in tems of SAAS.

    3. review of financial statements prepared by listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10F -- Insurance Companies Regulatory Authority


    118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.
      Financial Services Boart Registrar of Long-term Insurance (the executive officer of the Financial Services Board)


    119. What is the source of Legal authority of the regulatory authority(ies)?
      Financial Srvices Board Act,1990 (Act 97 0f 1990) Long-Term Insurance Act 1998 (Act 52 of 1998) Short-Term Insurance Act 1998 (Act 53 of 1998)


    120. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      Acts require the appointment of persons who is registered as auditors with the Public Accountants and Auditors Board (PAAB)and must be independent.

    2. accounting and auditing standard-setting

      Accounting standards set by the ASB, and the above named Acts determines amount of assets and spread thereoff to be held. Auditing standards set by the APB.

    3. review of financial statements prepared by listed listed entities

      Various departments within the FSB are responsible for reviewing financial statements.

    4. enforcement of accounting, reporting and auditing requirements

      Done through various Acts which fall within the ambit of the FSB



    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.
      Council for Medical Schemes
      Micro Finance Reguatory Council


    122. What is the source of Legal authority of each regulatory authority?
      Medical Schemes Act
      Usury Act Exemption Notice of 1 June 1999


    123. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      None

    2. accounting and auditing standard-setting

      None

    3. review of financial statements prepared by listed listed entities

      Financial statements of medical schemes are submitted to the Registrar of Medical Schemes where they are reviewed

    4. enforcement of accounting, reporting and auditing requirements

      Through the Medical Schemes Act



    Section 10H -- Quality Assurance


    124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?
      Yes   No

      If NO, proceed to next Section.

      If YES, briefly describe the monitoring and enforcement mechanism.

      Section 22A of Public Accountants and Auditors Act provides for the review of the practice of a PAAB registered accountant and auditor and take disciplinary action (section 23).

      Professional Accounting Bodies, like CFA(SA) and SAICA, perform practice reviews on their members and accounting standards is looked at. The JSE looks at standards and corporate governence for listed entities.
      The PAAB aslo performs practice reviews on the practices of auditors.



    125. Under what authority does the organization conduct the program of quality assurance review?
      CFA(SA) and CFA(SA) under their codes of conduct.
      The PAAB in terms of the Public Accountants and Auditors Act 1991 (Act 80 of 1991).


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?
      Persons appointed by the Professional Bodies to perform the reviews.



    Section 10 I -- Investigation and Discipline


    127. Is there a process for investigating and disciplining the accounting profession in your country?

    128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?
      Government or other agencies are solely responsible for this function.
      Government or other agencies have this responsibility, but the member body or bodies participate in the process.
      Government formally delegates this function to the member body or bodies, to exercise on its behalf.
      Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
      Other (please explain)


    129. Please indicate the name of the body or bodies responsible for investigation and discipline.
      For the CFA(SA:
      Investigations Committee
      Disciplinary Committee



    Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

    130. How many voting members does the body have?
      10


    131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Relevant expertise, experience and qualifications. Members include practicing members of the Institute and Secretariat. An attorney and advocate is also involved as assistants for the committees.


    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The Council of the CFA(SA)


    134. What is the term of appointment for members?
      1 Year(s)


    135. For how many years has the body been in existence?
      22 Year(s)


    136. Please indicate the budget in US$ of the body for the last fiscal year.
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      13,876

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      6.5 (specify currency)



    137. To what entity is the body accountable?
      The Council of the CFA(SA)


    138. Approximately how many days per year does the body meet in full session (including teleconferences)?
      5 Day(s)



     

     

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