South African Institute of Professional Accountants

SAIPA has established and maintains an ongoing quality assurance framework applicable to independent review engagements performed by its members, consistent with its mandate and the South African regulatory environment. While statutory audit quality assurance is the responsibility of the Independent Regulatory Board for Auditors (IRBA), SAIPA supports quality management for independent review services through its own systems and processes.

SAIPA has implemented an International Standards on Quality Management (ISQM)–aligned Quality Assurance Practice Review (QAPR) framework, incorporating ISQM 1 and ISQM 2 principles. This includes member guidance, structured self-assessments, development of standardized review instruments, and the training and certification of independent quality assessors.

During the current cycle, SAIPA has progressed from awareness-raising and framework design to phased operationalization of independent practice reviews, supported by dedicated systems and monitoring processes. SAIPA continues to enhance alignment between its quality assurance activities, its investigation and discipline framework, and relevant external regulatory processes, demonstrating an ongoing commitment to maintaining and improving quality in professional practice.

Current Status: Sustain

SAIPA maintains a comprehensive education, training, and professional development framework designed to meet the requirements of the International Education Standards (IES), taking into account national qualification and regulatory requirements. SAIPA’s framework covers entry requirements, initial professional development, practical experience, assessment of professional competence, and continuing professional development for members.

SAIPA reports alignment of its education and training requirements with the 2019 International Education Standards, supported through SAIPA-accredited tertiary education programs, structured workplace-based practical training at accredited training centres, competency-based assessments, and mandatory continuing professional development.

SAIPA undertakes ongoing review and enhancement of its competency frameworks, assessment approaches, and CPD systems to respond to evolving professional demands, regulatory expectations, and IFAC standards. Oversight is provided through SAIPA’s governance and education committees, supporting continuous improvement in fulfillment of SMO 2 obligations.

Current Status: Sustain

The Independent Regulatory Board for Auditors (IRBA) is the entity responsible for setting auditing standards in South Africa; however, given that SAIPA members may conduct independent reviews of companies with a certain public interest score, SAIPA ensures that the International Standards Regulation Engagements (ISRE) as issued by the IAASB are applied.

To support its members, SAIPA has developed an online training and assessment on the ISRE. Once a member successfully passes the course, they are certified to act as an independent reviewer. Additionally, SAIPA provides trainings and continuing professional development to improve the competencies of members carrying out independent reviews. To date, SAIPA states that it offers trainings that cover the following topics: (i) engagement letter, (ii) accounting officer’s report, (iii) independent reviews, (iv) agreed upon engagements, and (iv) quality assurance.

Lastly, SAIPA states that it contributes to the international-standard setting process by providing comments either in its own capacity or through the entities as the Financial Reporting Standards Council.

Current Status: Sustain

SAIPA has adopted the International Code of Ethics for Professional Accountants (including International Independence Standards) as the foundation of its ethical requirements for members. Ethical principles and professional conduct obligations are embedded in SAIPA’s governing documents, policies, and membership requirements.

SAIPA supports implementation of the Code through mandatory ethics-related continuing professional development, member guidance, and awareness-raising activities. Compliance with ethical requirements is monitored and enforced through SAIPA’s investigation and discipline system, which provides mechanisms for the investigation of misconduct and the application of appropriate sanctions.

SAIPA reviews and updates its ethical guidance and training activities to reflect revisions to the Code and emerging ethical issues, supporting ongoing fulfillment of SMO 4 obligations.

Current Status: Sustain

The Accounting Standards Board (ASB) is the entity responsible for adopting public sector accounting standards in South Africa. The ASB has adopted the Generally Recognized Accounting Practice (GRAP), which mostly align with accrual-basis IPSAS; however in practice most government departments are applying a modified cash basis of accounting while the National Treasury is developing a roadmap to implement accrual accounting across all departments (IFAC, CIPFA 2020)

SAIPA supports both the national and international public sector standard-setting process by serving on the Public Sector Technical Forum of the ASB. SAIPA, along with other representatives of the Forum such as SAICA, the National Treasury, and the Auditor General, meet to discuss issues related to public sector accounting in South Africa. Through the ASB, SAIPA will also submit comments on Exposure Drafts issued by the IPSASB.

In its own capacity, SAIPA reports it has undertaken several strategic initiatives to further the understanding of IPSAS. It has presented its model for the professionalization of public sector accountants to key stakeholders such as the Treasury, the South African Local Government Association, the Local Government Sector Education and Training Authority, and Forum of Accounting Bodies. The institute also engaged in discussions with the Treasury and other government authorities to encourage the provision of a short course on IPSAS and public finance. The course was envisioned as part of SAIPA’s growth strategy to attract members toward the public sector and promote mobility into and throughout the profession. Subsequently, it signed a memorandum of understanding with CPA Ireland to offer the short course on IPSAS online to practitioners and public finance professionals in South Africa.

Furthermore, SAIPA collaborated with the University of Western Cape to develop a post graduate program on Public Sector Financial Management and has endorsed the public sector qualification offered by the University of Cape Town.

SAIPA is using its best endeavors to fulfill its obligations under SMO 5, and it is encouraged to continue its advocacy and support toward accrual-basis IPSAS. Adoption and implementation of accrual IPSAS as issued by the IPSASB would ensure application of global best practice. SAIPA may find IFAC’s Train the Trainers: Introduction to IPSAS resource helpful for any advocacy and/or educational activities it offers.

Current Status: Sustain

SAIPA maintains an investigation and discipline (I&D) system applicable to its members, consistent with the requirements of SMO 6 and its role as a professional accountancy organization. The system includes documented procedures for receiving complaints, conducting investigations, applying disciplinary measures, and monitoring outcomes.

SAIPA’s I&D framework is supported by governance oversight and integrates with other regulatory and professional processes where relevant. During the current cycle, SAIPA has identified opportunities to further strengthen coordination between its quality assurance activities and its investigation and discipline processes, including the use of QA outcomes to inform monitoring and follow-up actions.

These activities demonstrate SAIPA’s ongoing commitment to maintaining an effective and credible I&D system and to continuously reviewing and improving its fulfillment of SMO 6 obligations.

Current Status: Sustain

IFRS and IFRS for SMEs have been codified by amendments to the Companies Act 2008 and approved by the Financial Reporting Standards Council (FRSC)—the entity responsible for setting accounting standards. As such, SAIPA supports the implementation process by providing mandatory annual continuing professional development workshops on IFRS and IFRS for SMEs and disseminating technical updates on the standards to its members through its various magazines. Additionally, the institute organizes trainings on IFRS for SMEs for its members that are led by approved training providers.

SAIPA states that it publishes articles on IFRS in various sources such as its weekly newsletter and journal to share information with its members and other relevant stakeholders. Furthermore, SAIPA reports it has produced a textbook on IFRS for SMEs as a tool for members and it is prescribed as study material at South African universities such as the University of Cape Town, the University of Western Cape, University of the Witwatersrand, and Cape Peninsula University of Technology.

Lastly, SAIPA indicates that it participates in the international-standard setting process in coordination with the FRSC by submitting comments to Exposure Drafts issued by the IASB.

Current Status: Sustain