Exam fiasco underlines how the institute has taken the accounting profession to new lows
09 December 2021 - 14:55
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Saica CEO Freeman Nomvalo says the body is now ready to act against former Steinhoff CEO Markus Jooste. Picture: ALON SKUY
I am surprised at the silence of the accounting profession and of the Independent Regulatory Board for Auditors, and of professional firms and corporations that employ accountants accredited by the SA Institute of Chartered Accountants (Saica), on the December 1 Assessment of Professional Competence examination fiasco caused by indifference or inability.
Surely the failure to administer an exam severely compromises the content of the exam and its outcome?
The reaction of CEO Freeman Nomvalo, blaming poor decisions at some unidentified “low level” and the absence of procedures to escalate problems make the embarrassment scandalous: surely professionals are distinguished by an ability and preparedness to accept that the buck stops at the very top? Surely this should be evident in the behaviour of the CEO of an institution charged with accrediting professionals?
Nomvalo’s apology, however welcome, confirms fatal management flaws at Saica. The most critical weakness appears to be the puzzling chasm between a fragile executive and feckless staff.
BusinessLIVE reported a year ago, on December 15 2020: “It was not long ago that SA’s auditing standards were regarded as the world’s best. As recently as 2016 the World Economic Forum’s global competitiveness report ranked SA auditing standards No 1 worldwide, a position held for seven consecutive years … Fast forward to the latest WEF report, for 2019, and SA’s auditing standards now rank 49 out of 141 countries.”
One should hardly wonder at Steinhoff, Tongaat Hulett, EOH, Delta Property Fund and (old) African Bank when the very accrediting body of professionals possessed with audit responsibility has all but eviscerated a once proud institute.
Johnnie Westraadt Brackenfell
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: Saica is riddled with fatal flaws
Exam fiasco underlines how the institute has taken the accounting profession to new lows
I am surprised at the silence of the accounting profession and of the Independent Regulatory Board for Auditors, and of professional firms and corporations that employ accountants accredited by the SA Institute of Chartered Accountants (Saica), on the December 1 Assessment of Professional Competence examination fiasco caused by indifference or inability.
Surely the failure to administer an exam severely compromises the content of the exam and its outcome?
The reaction of CEO Freeman Nomvalo, blaming poor decisions at some unidentified “low level” and the absence of procedures to escalate problems make the embarrassment scandalous: surely professionals are distinguished by an ability and preparedness to accept that the buck stops at the very top? Surely this should be evident in the behaviour of the CEO of an institution charged with accrediting professionals?
Nomvalo’s apology, however welcome, confirms fatal management flaws at Saica. The most critical weakness appears to be the puzzling chasm between a fragile executive and feckless staff.
BusinessLIVE reported a year ago, on December 15 2020: “It was not long ago that SA’s auditing standards were regarded as the world’s best. As recently as 2016 the World Economic Forum’s global competitiveness report ranked SA auditing standards No 1 worldwide, a position held for seven consecutive years … Fast forward to the latest WEF report, for 2019, and SA’s auditing standards now rank 49 out of 141 countries.”
One should hardly wonder at Steinhoff, Tongaat Hulett, EOH, Delta Property Fund and (old) African Bank when the very accrediting body of professionals possessed with audit responsibility has all but eviscerated a once proud institute.
Johnnie Westraadt
Brackenfell
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Nicholas Riemer is the cream of Saica’s crop
Vassi Naidoo: Business leader and accountancy pathfinder | 1955-2021
Treasury in bid to stamp out widespread abuse of employment tax incentive
Consumer debt strangles municipalities, says Salga
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.