South Africa

In South Africa, financial reporting and auditing requirements are primarily established through the Companies Act 71 of 2008, the Auditing Profession Act of 2005, and sector-specific legislation.

The Companies Act 71 of 2008, which became effective in 2011, establishes the financial reporting framework for companies in the jurisdiction. The Act requires listed companies to prepare financial statements in accordance with IFRS Accounting Standards as issued by the IASB. The Act also establishes a differential reporting framework based on a public interest score, which determines the applicable financial reporting and assurance requirements for different categories of entities.

Public interest scores are calculated based on criteria such as the number of employees, third-party liabilities, turnover, and number of shareholders. Public companies, state-owned companies, and certain non-profit entities are required to apply full IFRS Accounting Standards, while other entities may apply IFRS for Small- and Medium-Sized Entities (SMEs) depending on their public interest score. Smaller entities with a low public interest score may apply simplified reporting frameworks where permitted by law.

Auditing requirements are established under the Auditing Profession Act of 2005, which created the Independent Regulatory Board for Auditors (IRBA). The IRBA is responsible for regulating the auditing profession and for adopting auditing standards in the jurisdiction. The IRBA has adopted the International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB) for application in all statutory audits.

Only individuals registered as Registered Auditors (RAs) with the IRBA are authorized to perform statutory audits. The Companies Act requires audits for public companies, state-owned companies, and private companies whose public interest score meets specified thresholds. Companies with lower public interest scores may instead be subject to independent review engagements, which are conducted in accordance with International Standard on Review Engagements (ISRE) 2400 (Revised).

Sector-specific legislation establishes additional financial reporting and audit requirements. For example, the Banks Act 1990 requires banks to prepare financial statements in accordance with IFRS and undergo annual audits. Listed companies are also subject to the listing requirements of the Johannesburg Stock Exchange (JSE), which mandate the use of IFRS and additional disclosure and governance requirements.

The accountancy profession in South Africa operates under a mixed regulatory model. Statutory regulation applies to Registered Auditors (RAs), while other professional accountants may voluntarily join professional accountancy organizations (PAOs), which regulate their members through professional standards, education requirements, and disciplinary mechanisms.

Regulation of Auditors

Auditors in South Africa are regulated by the Independent Regulatory Board for Auditors (IRBA) in accordance with the Auditing Profession Act of 2005. The IRBA is responsible for regulating the audit profession and protecting the public interest. Its responsibilities include maintaining the register of Registered Auditors, adopting auditing standards, conducting quality assurance inspections of audit firms, establishing additional education and professional requirements for auditors, investigating alleged improper conduct, administering investigative and disciplinary processes, and taking other actions necessary to protect the public in their dealings with Registered Auditors.

Only individuals registered with the IRBA as Registered Auditors are authorized to perform statutory audits. To qualify for registration, individuals must hold the designation of Chartered Accountant (CA(SA)) and be a member of the South African Institute of Chartered Accountants (SAICA) in accordance with the Chartered Accountants Designation (Private) Act No. 67 of 1993. In addition, candidates must meet the IRBA’s registration requirements, including completion of the Audit Development Program (ADP). The program includes practical experience in audit and assurance engagements and requires candidates to demonstrate competencies through documented evidence and professional assessment.

Additional oversight exists for auditors of listed companies. The Johannesburg Stock Exchange (JSE) requires financial statements of listed entities to be audited by JSE-accredited auditors. Audit firms must be registered with the IRBA and meet additional experience and competency requirements in order to qualify for accreditation. The JSE also monitors the quality of audits of listed companies in coordination with the IRBA’s inspection system. In certain sectors, such as banking, additional requirements apply and the appointment of a bank’s external auditor must be approved by the relevant supervisory authority.

Regulation of Professional Accountants

Professional accountants who are not Registered Auditors are primarily regulated through professional accountancy organizations. Membership in these organizations is generally voluntary, although certain professional activities require membership in a recognized professional body.

Several professional accountancy organizations operate in South Africa and are recognized under different legislative and regulatory frameworks. Under the Close Corporations Act 1984, a number of professional bodies are recognized by the Companies and Intellectual Property Commission (CIPC) as organizations whose members may serve as accounting officers for close corporations. In addition, several professional bodies are recognized by the South African Qualifications Authority (SAQA) under the National Qualifications Framework Act 67 of 2008. SAQA oversees the quality assurance and accreditation of professional qualifications and maintains a registry of accredited training providers and professional qualifications.

Each professional accountancy organization establishes its own professional qualification programs, education requirements, and continuing professional development obligations for its members. According to the World Bank, the qualification frameworks established by these organizations generally incorporate principles consistent with the International Education Standards (IES).

Two South Africa-based professional accountancy organizations are members of IFAC and are therefore subject to the IFAC Statements of Membership Obligations (SMOs): the South African Institute of Chartered Accountants (SAICA) and the South African Institute of Professional Accountants (SAIPA). Branches of international professional organizations also operate in the jurisdiction. Members of the Association of Chartered Certified Accountants (ACCA) and the Chartered Institute of Management Accountants (CIMA) in South Africa are subject to the requirements of their respective global organizations, which are also IFAC members.

Candidates for the Chartered Accountant (CA(SA)) designation and membership in SAICA must complete a SAICA-accredited academic program, practical training through a training contract with an approved training office, and pass SAICA’s professional examinations. SAICA establishes ethical requirements, continuing professional development requirements, and investigative and disciplinary procedures for its members.

Candidates for the Professional Accountant (PA(SA)) designation and membership in the South African Institute of Professional Accountants must complete an accredited academic program, fulfill practical experience requirements through a training program or relevant professional experience, and pass SAIPA’s professional examinations. SAIPA establishes ethical, education, and professional development requirements for its members and maintains investigative and disciplinary processes. Under the Companies Act 2008, SAIPA members are permitted to conduct independent reviews of companies with a public interest score below 100.

An independent audit oversight authority exists in South Africa. The Independent Regulatory Board for Auditors (IRBA) is responsible for the regulation and oversight of the audit profession in accordance with the Auditing Profession Act of 2005.

The IRBA is responsible for registering auditors, adopting auditing standards, conducting quality assurance inspections of audit firms, investigating alleged misconduct by Registered Auditors, and administering investigative and disciplinary procedures. The IRBA also establishes additional professional requirements for auditors and maintains the register of Registered Auditors authorized to perform statutory audits in the jurisdiction.

Only individuals registered with the IRBA as Registered Auditors (RAs) are authorized to perform statutory audits. In practice, candidates must hold the Chartered Accountant (CA(SA)) designation issued by the South African Institute of Chartered Accountants (SAICA) and meet the IRBA’s additional requirements, including completion of the Audit Development Program and ongoing continuing professional development.

SAICA also plays a role in the professional regulation of its members by establishing ethical requirements, continuing professional development obligations, and investigative and disciplinary processes applicable to Chartered Accountants.

The IRBA is a member of the International Forum of Independent Audit Regulators (IFIAR).

There are 12 professional accountancy organizations (PAOs) in South Africa.

The Association of Chartered Certified Accountants—South Africa (ACCA-South Africa)

ACCA-South Africa is a local subsidiary of the ACCA UK-based body for professional accountants. ACCA South Africa has approximately 400 members who are required to meet high-level membership requirements, which are adopted at the global level. The ACCA qualification is accredited under the National Qualification Framework (NQF). Members of ACCA may serve as accounting officers, but they are not accredited to offer audit services. ACCA is involved in the development of the profession in South Africa by sharing good practices at the local level and developing partnerships with local tertiary institutions. ACCA-UK is a member of IFAC.

Chartered Institute of Business Management

The Chartered Institute of Business Management is a subsidiary body of Chartered Secretaries Southern Africa (CSSA). It is not an examining body but rather was set up to provide professional membership benefits to students while they progress along the CSSA courses until they have passed and become graduates of the Institute (GradICSA). The major difference is that students will be entitled to apply for membership of the Chartered Institute of Business Management at various levels after passing a minimum of five CSSA modules or if exemptions are granted and apply the appropriate title after their names. Members of other professional bodies, university graduates or holders of National Diplomas can qualify to apply for a higher level of Chartered Institute of Business Management membership by studying for the CSSA programs. CIBM is not an IFAC member.

Chartered Institute of Management Accountants—South Africa (CIMA-South Africa)

CIMA-South Africa is a local subsidiary of the UK-based CIMA, a membership organization for management accountants. CIMA-South Africa’s membership includes over 1,600 professionals and its qualification is accredited under the NQF. Members of CIMA-South Africa may serve as accounting officers, but they are not accredited to offer audit services. CIMA is involved in the development of the profession in South Africa by sharing good practices at the local level and developing partnerships with local tertiary institutions. CIMA-UK is a member of IFAC.

Institute of Accounting and Commerce (IAC)

The Institute of Accounting and Commerce (IAC) was established in 1927 as a provider of distance learning education and professional accounting and management institute. It is now registered as a professional accounting institute and specializes in the registration of accounting officers in terms of the Close Corporations Act. Its mission is to promote formal learning and the highest professional standards of its members and lead the assessment and practice of business and public management in Africa. The Institute’s head office is in Cape Town and its membership is mainly South Africa-based but the Institute has members in Namibia, Zimbabwe, Botswana and Swaziland. IAC is not an IFAC member.

South African Institute of Business Accountants (SAIBA)

SAIBA was established in 1987 and its members were granted accounting officer status in 1996. Today, it is a voluntary accounting membership body with more than 6,500 members. Members fall into membership tiers, according to experience and qualifications. More than fifty percent of members are employed in business, the public sector or academia. The remainder manage their own accountancy practices within the private sector. SAIBA supports its members by adopting and implementing international standards relating to ethics, quality, education, financial reporting, assurance, and other engagements. SAIBA enables the sharing of knowledge and assists members in understanding all areas affecting accountants and financial professionals. SAIBA is not an IFAC member.

South African Institute of Chartered Accountants (SAICA)

SAICA is a South-African based PAO formally established in 1980. SAICA is responsible for setting ethical as well as initial and continuing professional development (CPD) requirements for its members and establishing an investigative and disciplinary system for its members. Only SAICA members with the designation of CA(SA) are eligible to register as Registered Auditors (RAs) with the IRBA, and if admitted, they are authorized by to offer audit services in South Africa and are subject to full regulation by the IRBA. In addition to being a member of IFAC, SAICA is a member of the Pan African Federation of Accountants (PAFA). It frequently collaborates with IRBA, SAQA, and SAIPA to drive the development of the accountancy profession.

Southern African Institute of Government Auditors (SAIGA)

SAIGA was founded on July 27, 1988. The objectives of the Institute are broadly defined and encompass the promotion of the members’ interests by advancing accountability and auditing. Since the principles of government auditing are based on the generic principles of auditing, the Institute strives to promote auditing in its wider context. Its professional designation of “Registered Government Auditor” are recognized as a professional body by the South African Qualifications Authority (SAQA) for the purposes of the NQF Act. The Auditor-General South Africa (AGSA) recognized the RGA qualification as a professional qualification in the Auditor-General Office. SAIGA is not an IFAC member.

South African Institute of Professional Accountants (SAIPA)

SAIPA is a South African-based PAO formally established in 1982 and its responsibilities are similar to those of SAICA. It is a voluntary membership organization for professional accountants who offer accountancy, tax, and independent review services. Only SAIPA members may use the designation of PA(SA). In addition to being a member of IFAC, SAIPA is a member of the PAFA. It frequently collaborates with IRBA, SAQA, and SAICA to drive the development of the accountancy profession.

Southern African Institute of Chartered Secretaries and Administrators (CSSA)

Chartered Secretaries Southern Africa is the formal professional Institute for the enabling of corporate governance and company secretaryship as well as the expert commentator and thought leader in Southern Africa on governance matters. It is a recognized qualification for the accounting officer post required in terms of Close Corporation legislation. CSSA is the professional qualifying body for Chartered Secretaries offering an international qualification recognized in more than 70 countries. The career-long program of study comprises attainment of professional qualifications and requires continuing professional development (CPD), which ensures that members remain on the cutting edge of developments. CSSA represents Botswana, Lesotho, Namibia, South Africa and Swaziland. The CSSA is not an IFAC member.

Association of Accounting Technicians—South Africa (AAT-South Africa)

AAT-South Africa is a local subsidiary of the UK-based AAT. AAT offers vocational accountancy and finance qualifications, which are recognized by the South African NQF. AAT-South Africa members mainly offer accountancy services but not are authorized by the CIPC to serve as accounting officers for close corporations. AAT-UK is a member of IFAC.

The Institute of Certified Bookkeepers (ICB)

The Institute of Certified Bookkeepers was established in 1931. Its role is to improve and maintain the quality, credibility and reputation of bookkeeping, accounting, office management and financial management training and qualifications in southern Africa. As a Quality Assurance Service Provider (QASP) of the Finance and Accounting Services Sector Education and Training Authority (FASSET), the ICB is an examining and certification body for several of FASSET’s business qualifications. All ICB qualifications are accredited on the NQF by the South African Qualifications Authority (SAQA) and the Zambian Vocational Qualifications Framework. ICB is not a member of IFAC.

Institute of Internal Auditors (IIA South Africa)

The IIA SA is part of an international network representing the interests of Internal Auditors worldwide. As a part of this international network, the IIA SA upholds and supports the fundamental tenets of the profession - the Code of Ethics and the International Standards for the Professional Practice of Internal Auditing. The IIA SA supports the profession by providing a wide range of services dedicated to the education and advancement of internal auditors and dynamically promoting and developing the profession in South Africa. The IIA SA’s objectives are to build the profession, its credibility, and a thriving business environment in South Africa. The IIA is not a member of IFAC.

Under the Auditing Profession Act of 2005, the Independent Regulatory Board for Auditors (IRBA) is responsible for establishing and operating a mandatory quality assurance (QA) review system for auditors and audit firms performing statutory audits. The IRBA conducts inspections of Registered Auditors and audit firms and has established a QA review system that is aligned with the requirements of SMO 1.

The Companies Act 71 of 2008 introduced independent reviews for certain companies based on their public interest score. Independent reviews may be performed by Registered Auditors and Chartered Accountants (CA(SA)) for companies with a public interest score of 100 or more, while members of several recognized professional accountancy organizations may perform independent reviews for companies with a public interest score below 100.

Within the scope of its membership, the South African Institute of Professional Accountants (SAIPA) has established a Quality Assurance Practice Review framework applicable to independent review engagements performed by its members. Since 2022, the framework has incorporated the International Standards on Quality Management (ISQM 1 and ISQM 2) and includes guidance, training, and practice review mechanisms to support implementation.

Current Status: Adopted

In South Africa, initial professional development (IPD) and continuing professional development (CPD) requirements for professional accountants are established by individual professional accountancy organizations. These organizations offer their own qualification programs and establish education, practical experience, and examination requirements for their members.

Professional bodies whose members serve as accounting officers for close corporations must be recognized by the Companies and Intellectual Property Commission (CIPC). In addition, professional qualifications must be recognized under the National Qualifications Framework (NQF) by the South African Qualifications Authority (SAQA), which is responsible for overseeing the quality assurance and accreditation of qualifications and maintaining a national registry of accredited training providers and professional designations.

Candidates for the designation of Chartered Accountant (CA(SA)) and membership in the South African Institute of Chartered Accountants (SAICA) must fulfill SAICA’s academic, practical experience, and examination requirements and comply with continuing professional development obligations to maintain membership. SAICA reports that its IPD and CPD requirements are aligned with the 2019 International Education Standards (IES). Individuals who wish to perform statutory audits must also meet additional requirements established by the Independent Regulatory Board for Auditors (IRBA) and register as Registered Auditors (RAs). The IRBA also establishes continuing professional development requirements for RAs to support alignment with IES 8 (Professional Competence for Engagement Partners Responsible for Audits of Financial Statements).

Candidates for the designation of Professional Accountant (PA(SA)) and membership in the South African Institute of Professional Accountants (SAIPA) must complete SAIPA’s academic, practical experience, and examination requirements and maintain continuing professional development. SAIPA reports that its IPD and CPD requirements are aligned with the 2019 IES and with the quality assurance principles established under the NQF.

International professional bodies also operate in the jurisdiction. Members of the Association of Chartered Certified Accountants (ACCA) and the Chartered Institute of Management Accountants (CIMA) in South Africa must meet education and training requirements established by their respective global organizations. These requirements are aligned with the IES, and their qualifications are recognized under the NQF.

There is limited publicly available information regarding the education and professional development requirements of several other professional bodies operating in the jurisdiction that are not IFAC members. As a result, while many qualification frameworks appear to incorporate principles consistent with the IES, the requirements of the International Education Standards have not been demonstrably adopted in their entirety for all professional accountants in the jurisdiction.

Current Status: Partially Adopted

Under the Auditing Profession Act of 2005, the Independent Regulatory Board for Auditors (IRBA) is responsible for adopting auditing standards in South Africa. The IRBA has adopted the International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB) without modification and including their effective dates for all statutory audits.

In addition, the IRBA has adopted the full suite of IAASB standards, including the International Standards on Quality Management (ISQM 1 and ISQM 2), International Standards on Review Engagements (ISRE), International Standards on Assurance Engagements (ISAE), and International Standards on Related Services (ISRS).

Independent reviews performed for certain companies under the Companies Act 71 of 2008 are conducted in accordance with ISRE 2400 (Revised) where an audit is not required.

Current Status: Adopted

Ethical requirements for Registered Auditors (RAs) in South Africa are established by the Independent Regulatory Board for Auditors (IRBA) in accordance with the Auditing Profession Act of 2005. In 2010, the IRBA adopted the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA) as the IRBA Code of Professional Conduct for Auditors, with certain additional provisions addressing local regulatory requirements. The IRBA has subsequently adopted revisions to the Code, including the restructuring issued in 2018.

Professional accountants who are not Registered Auditors are subject to ethical requirements established by their respective professional accountancy organizations (PAOs). The South African Institute of Chartered Accountants (SAICA) adopts the IESBA Code as the SAICA Code of Ethics, with limited modifications to address local regulatory matters. SAICA indicates that these modifications do not alter the underlying requirements of the IESBA Code and that its Code is consistent with the IRBA Code. SAICA members who are Registered Auditors must comply with both codes.

The South African Institute of Professional Accountants (SAIPA) establishes ethical requirements for its members and reports that its Code of Ethics is aligned with the 2020 IESBA Code.

There is limited publicly available information regarding the ethical requirements established by several other professional bodies operating in the jurisdiction that are not IFAC members. As a result, while the IESBA Code forms the basis of ethical requirements for auditors and for members of several PAOs, the Code has not been demonstrably adopted in its entirety for all professional accountants in the jurisdiction.

Current Status: Partially Adopted

The Accounting Standards Board (ASB) is responsible for establishing public sector accounting standards in South Africa. The ASB issues Standards of Generally Recognized Accounting Practice (GRAP), which are largely based on accrual-basis International Public Sector Accounting Standards (IPSAS).

While GRAP standards are aligned with IPSAS principles, IPSAS have not been adopted in their entirety in the jurisdiction. In practice, many government departments continue to apply a modified cash basis of accounting, while the National Treasury is pursuing reforms aimed at transitioning public sector entities toward accrual-based financial reporting.

Current Status: Partially Adopted

The investigation and discipline (I&D) of Registered Auditors (RAs) in South Africa is carried out by the Independent Regulatory Board for Auditors (IRBA) in accordance with the Auditing Profession Act of 2005. The IRBA is responsible for investigating alleged misconduct by Registered Auditors and administering disciplinary proceedings where appropriate. SAICA indicates that the IRBA’s investigative and disciplinary system for Registered Auditors is aligned with the requirements of SMO 6.

Professional accountants who are not Registered Auditors are subject to investigative and disciplinary procedures established by their respective professional accountancy organizations (PAOs). The South African Institute of Chartered Accountants (SAICA) operates an investigative and disciplinary system for its members and reports that its processes are aligned with the revised SMO 6 requirements. To avoid duplication of oversight responsibilities, complaints involving Registered Auditors who are SAICA members are referred to the IRBA, and SAICA recognizes and reports on disciplinary outcomes issued by the IRBA.

The South African Institute of Professional Accountants (SAIPA) maintains an investigative and disciplinary framework applicable to its members. SAIPA reports that its system includes investigation, disciplinary, and appeals mechanisms and has been reviewed against the components of SMO 6 to ensure alignment with the requirements.

There is limited publicly available information regarding the investigative and disciplinary systems of several other professional bodies operating in the jurisdiction that are not IFAC members. As a result, while investigative and disciplinary systems exist for auditors and for members of certain PAOs, alignment with the SMO 6 requirements has not been demonstrated for all professional accountants in the jurisdiction.

Current Status: Partially Adopted

The Companies Act 71 of 2008, effective from 2011, establishes the financial reporting framework for companies in South Africa. The Act requires listed companies and state-owned companies to prepare financial statements in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB). The Financial Reporting Standards Council (FRSC) advises the Minister of Trade, Industry and Competition on financial reporting standards in the jurisdiction.

The Act also prescribes the use of IFRS Accounting Standards or IFRS for Small- and Medium-sized Entities (SMEs) for different categories of companies based on a public interest score framework. Certain private companies and non-profit entities may apply IFRS for SMEs or other permitted reporting frameworks depending on their public interest score and reporting requirements.

Current Status: Adopted

Relevant Organizations

Companies Intellectual Property Commission (CIPC)

Independent Regulatory Board for Auditors (IRBA)

International Forum of Independent Audit Regulators (IFIAR)

South African Institute of Chartered Accountants (SAICA)

South African Institute of Professional Accountants (SAIPA)

South African Qualifications Authority (SAQA)

Relevant Legislation

Auditing Profession Act 2005

Chartered Accountants Designation (Private) Act 67 of 1993

Companies Act 2008

SAICA By-Laws

SAICA Constitution

SAIPA By-Laws

SAIPA Constitution

Relevant Publications

IFRS Foundation, IFRS Application Around the World?Jurisdictional Profile: South Africa, June 2016.

IFIAR, 2021 Member Profile: South Africa, n.d.

SAICA, SMO Action Plan

SAICA, Annual Report, April 2015.

SAIPA, SMO Action Plan

World Bank, Report on the Observance of Standards and Codes—Accounting and Auditing: South Africa, June 2013.