THE CA 2010 TRAINING PROGRAMME INFORMATION BROCHURE FOR PROSPECTIVE TRAINEES Version:
TABLE OF CONTENTS Background Reasons for the development of the 2010 Programme Fundamental principles How the 2010 Programme was developed The structure of the 2010 Programme Application and implementation of the 2010 Programme Your questions answered 2
BACKGROUND The South African Institute of Chartered Accountants (SAICA), South Africa s pre-eminent accountancy body, is widely recognised as one of the world s leading accounting institutes. The CA(SA) qualification is generally accepted as the top professional accountancy designation. The reputation of the CA(SA) is excellent beyond the borders of South Africa and ranks with the most highly regarded worldwide. SAICA s objective is to retain and cement the preeminence of its qualification through the entrenchment of leadership as one of the fundamental attributes of a CA(SA). A CA(SA) is a leader with a very specific background in professional accountancy. The 2010 Training Programme is essential to the maintenance of the status of the CA(SA) qualification because it - provides trainees with an opportunity to integrate and apply their theoretical (academic) knowledge in a practical, real-life environment, and creates a platform for trainees to develop a base of technical and professional skills, from which they can build the professional development required for their future careers as CAs(SA). In order to ensure that the CA(SA) qualification retains its status and credibility, SAICA has to fulfil the following responsibilities in relation to the CA 2010 Training Programme: Ensure that prospective Chartered Accountants in South Africa receive a well-rounded training Ensure that the required competence is obtained through the application of theoretical knowledge to practical skills under the direction and supervision of experienced, qualified members Ensure that prospective Chartered Accountants in South Africa have an appreciation of the contemporary business environment and are equipped with the skills required to perform a wide variety of roles and activities. The qualification programme for the CA(SA) designation comprises education, training and assessment components, which each contribute to the standard and status of the CA(SA) qualification. The goal of accounting education, training and assessment is to produce competent professional accountants who make a positive contribution to the profession and society in which they work during their lifetimes. The education, training and assessment process must provide a foundation of knowledge, skills and professional values that enable CAs(SA) to continue to learn and adapt to change throughout their professional lives. Back to Table of Contents 3
REASONS FOR THE DEVELOPMENT OF THE 2010 PROGRAMME We are living in an era defined by global competition, unbridled change, increasing business complexity and ongoing technological advancements. Through extensive consultation with SAICA members, training officers and other stakeholders, it became clear that the current training programme would in the very near future require changes to meet the demands of the economy. SAICA is responsible for ensuring that the CA(SA) brand responds to the needs of the South African economy by ensuring that the chartered accountancy designation remains relevant and sustainable, and that the profession continues to grow. Failure to update the training programme may compromise not only the international standing of the CA(SA) qualification, but could impact on the status and standing of the qualification in the local economy. Therefore, SAICA determined that, in order to ensure the sustainability and relevance of the designation, we had to develop a training programme that took the following environmental factors into account: SAICA training officers told us unequivocally that the current training programme is far too prescriptive, and does not make provision for the unique circumstances of each training environment. They urged SAICA to develop a training programme that is more flexible and that is applicable in all training environments, including public practice, commerce and industry and the public sector. The demands of globalisation and the need for CAs(SA) to be able to function effectively on a global stage; The impact of information and communication technologies on the work performed by CAs(SA); The increased emphasis on corporate governance and ethics, and the need for prospective CAs(SA) to deal with governance issues and ethical dilemmas; The international growth in the provision of non-attest services by the traditional audit firms; and The potential and anticipated impact of Corporate Law Reform on the ability of SAICA training offices to benefit from the employment of SAICA trainees. Back to Table of Contents 4
FUNDAMENTAL PRINCIPLES The development of the 2010 Programme was influenced and directed by a number of fundamental guiding principles, which were determined by the Education and Training Requirements Committees and approved by SAICA s Board. ` Standards will be maintained The training programme will remain rigorous and allow for the selection of people with high intellectual ability and the ability to apply themselves Competencies are defined to deliver ONE CA The training programme must, to the extent appropriate, comply with the requirements and processes of the Independent Regulatory Board for Auditors The minimum training contract period will continue to be three years The training programme will include an increased focus on professional values, ethics and business acumen Back to Table of Contents 5
HOW THE 2010 PROGRAMME WAS DEVELOPED The 2010 Programme was developed based on a significant number of inputs. External Research & Reports International comparison Consultation with Members IRBA Requirements Global/Macro trends 2010 Programme Competency Framework (CICA UFE) We considered the following GLOBAL LOCAL TRENDS influencing professional development: The increased emphasis on corporate governance and professional ethics; The international and local skills shortage; The impact of the entrance of Generation Y into the workforce; The effects of corporate law reform on the public practice training environment; and Local and international mobility of workers, together with the effects of globalisation. In a number of CONSULTATIVE WORKSHOPS held in centres across the country, TRAINING OFFICERS REQUESTED the following ENHANCEMENTS to the existing SAICA training programme: A reduction in the emphasis on the prescribed competencies in auditing; The introduction of a requirement for trainees to gain exposure to entrepreneurial and business skills; An increased emphasis on the development of trainees personal, interpersonal and communication skills; and A much greater degree of flexibility in the content and structure of the training programme. We considered the findings of various RESEARCH PROJECTS, including research into the South African CFO of the future and research into the skills shortage in financial management, accounting and auditing. In order to ensure that the 2010 Programme is COMPARABLE WITH INTERNATIONAL BEST PRACTICE and that we RETAIN OUR RECIPROCITY STATUS with a variety of international institutes, we looked at a number of training programmes from a variety of professional bodies and accounting institutes across the world. SAICA s decision to adopt a COMPETENCY FRAMEWORK as a BASE FOR THE PROFESSIONAL EDUCATION PROFESSIONAL TRAINING PROGRAMMES, necessitated a revision of the CONTENT of the training programme. 6
The Competency Framework identifies and describes the professional competencies (knowledge, skills and attributes) that a CA(SA) should demonstrate at entry point to the profession (i.e. on completion of the required education, training and assessment at which point a person is eligible to register as a member of SAICA in order to use the CA(SA) designation). It provides a reference point for current and prospective CAs, employers and the public which enables a clear understanding of the foundational competencies with which a CA(SA) embarks upon a career, and provides the base upon which the education, training and assessment programmes of SAICA are developed and delivered. It therefore follows that a change in the content of the training programme would inevitably lead to a reconsideration of the structure of the programme. Competency framework Describes the professional competencies and proficiency levels that a CA(SA) should demonstrate at entry point to the profession Focuses on those prequalification competencies that will provide a foundation for the acquisition of technical skills and leadership ability after entry to the profession The competency framework gives us a picture of the CA(SA) at point of qualification Back to Table of Contents 7
THE STRUCTURE CONTENT OF THE 2010 PROGRAMME Main features of the 2010 Programme Flexibility to allow for areas of focus in the training programme Flexibility to allow for broad exposure to a variety of areas Emphasis on the professional skills and accounting and external reporting Content The 2010 Programme comprises seven skills areas: Pervasive skills: - Business Ethics - Management and Leadership - Personal Attributes Accounting and External Reporting Auditing and Assurance Financial Management Management Decision-Making and Control Strategy, Risk Management and Governance Taxation ALL trainees will be required to gain exposure and achieve competence in ALL the skills areas, but to varying degrees of complexity. The depth and breadth of a trainee s exposure will be determined by the nature, industry and business model of the training office. In order to accommodate the unique circumstances of each training office, whether in public practice, commerce and industry or the public sector, a training office will be able to structure its training programme to meet its needs, within the following parameters. 8
Structure RESIDUAL SKILLS The balance of the prescribed skills areas Trainees must gain BASIC EXPERIENCE in these skills areas ELECTIVE SKILLS At least ONE of the prescribed skills areas COMPULSORY SKILLS 1. Accounting and external reporting 2. Pervasive professional skills Trainees must gain ADVANCED EXPERIENCE in these skills areas 9
A 2010 Programme will therefore be structured as follows: Compulsory skills Elective skills Residual skills Accounting and external reporting Pervasive professional skills Either Auditing and assurance OR Financial management OR Management decision-making OR Internal audit, risk management and governance OR Taxation Either Auditing and assurance OR Financial management OR Management decision-making OR Internal audit, risk management and governance OR Taxation BASIC EXPERIENCE ADVANCED EXPERIENCE Trainees must obtain sufficient experience to gain a comprehensive understanding of the concepts and techniques, and must be able to apply these concepts and techniques in complex situations or environments Trainees must obtain sufficient experience to gain a basic understanding of the concepts and techniques, and must be able to apply these concepts and techniques in simple, uncomplicated situations or environments In line with the principle of a competence-based training programme, there are NO MINIMUM TIME PRESCRIPTIONS for any of the skills areas, although there are time prescriptions relating to the term of the training contract (see page 14) 10
The 2010 Programme provides each training office with the FLEXIBILITY FREEDOM to structure its training programme to meet its business, training and succession planning needs. In fact, an office may choose to offer more than one training programme. This point is illustrated in the SAMPLE TRAINING PROGRAMMES below. Example 1 For qualification as a CA(SA) Compulsory skills Elective skills Residual skills Accounting and external reporting Pervasive professional skills Financial management and Taxation Auditing and assurance Management decision-making Internal audit, risk management and governance BASIC EXPERIENCE ADVANCED EXPERIENCE Trainees must obtain sufficient experience to gain a comprehensive understanding of the concepts and techniques, and must be able to apply these concepts and techniques in complex situations or environments Trainees must obtain sufficient experience to gain a basic understanding of the concepts and techniques, and must be able to apply these concepts and techniques in simple, uncomplicated situations or environments 11
Example 2 For qualification as a CA(SA) Compulsory skills Elective skill Residual skills Accounting and external reporting Pervasive professional skills Internal audit, risk management and governance Auditing and assurance Financial management Management decision-making Taxation BASIC EXPERIENCE ADVANCED EXPERIENCE Trainees must obtain sufficient experience to gain a comprehensive understanding of the concepts and techniques, and must be able to apply these concepts and techniques in complex situations or environments Trainees must obtain sufficient experience to gain a basic understanding of the concepts and techniques, and must be able to apply these concepts and techniques in simple, uncomplicated situations or environments 12
Example Example 3 For 3 qualification For qualification as a CA(SA) as a CA(SA) and RA Compulsory skills Elective skill Residual skills Accounting and external reporting Pervasive professional skills Auditing and assurance Financial management Management decision-making Taxation Internal audit, risk management and governance BASIC EXPERIENCE ADVANCED EXPERIENCE Trainees must obtain sufficient experience to gain a comprehensive understanding of the concepts and techniques, and must be able to apply these concepts and techniques in complex situations or environments Trainees must obtain sufficient experience to gain a basic understanding of the concepts and techniques, and must be able to apply these concepts and techniques in simple, uncomplicated situations or environments Back to Table of Contents 13
APPLICATION IMPLEMENTATION OF THE 2010 PROGRAMME The 2010 Programme is applicable to all NEW, FIRST-TIME TRAINING CONTRACTS with an EFFECTIVE DATE OF 1 JANUARY 2010. The training officer has the sole discretion to determine whether or not to allow a trainee who is registered under an existing TIPP or TOPP contract to convert his/her contract to the 2010 Programme. Should a trainee convert from an existing TIPP or TOPP contract to the 2010 Programme, he/she will have to meet the discharge requirements of the 2010 Programme, although he/she will receive credit for competencies achieved under their previous TIPP or TOPP contracts. Trainees who have a previously cancelled contract, and who enter into a new contract with effect from 1 January 2010 will not be subject to the 2010 Programme, subject to the training officer s discretion in this regard. Existing trainees, i.e. trainees who entered into training contracts before 1 January 2010, are subject to the provisions of the TIPP or TOPP training programmes. Requirements for the discharge of trainees DISCHARGE REQUIREMENT 2010 PROGRAMME TIPP/TOPP PROGRAMMES Prescribed competencies to be achieved The compulsory skills areas At least one elective skills area The residual skills areas Successful completion of the prescribed or recognised ethics programme The competencies prescribed for either the TIPP or TOPP programme Work attendance hours Core experience hours Calendar term of the contract Academic requirement 7 500 hours (5-year contract) 6 000 hours (4-year contract) 4 800 hours (3-year contract) 6 000 hours (5-year contract) 4 800 hours (4-year contract) 3 600 hours (3-year contract) 60 months (5-year contract) 48 months (4-year contract) 36 months (3-year contract) Successful completion of an accredited BCom degree The implications of a change in a trainee s elective A trainee and training officer can, through mutual agreement, in the course of the 2010 Programme, change the elective in a trainee s training programme, or add an additional elective. The minimum requirement for discharge of a training contract is that the trainee must have achieved the required competencies in at least ONE elective. 14
The structure of the 2010 Programme allows for the achievement of either the CA(SA) qualification, or the CA(SA) and RA qualifications. Qualification as a CA(SA) on the 2010 Programme Qualification as a CA(SA) and RA 1 on the 2010 Programme Complete accredited BCom degree Complete CTA or equivalent Enter into the 2010 Programme, with any one or a combination of any electives Enter into the 2010 Programme, with Auditing and Assurance as an elective Complete Part I of the SAICA QE1 Complete Professional Programme Complete Auditing Specialism Programme Complete a minimum of 18 months of the 2010 Programme Complete SAICA QE2 Complete IRBA PPE Complete balance of 2010 Programme REGISTER WITH SAICA AS A CA(SA) Back to Table of Contents REGISTER WITH SAICA AS A CA(SA) REGISTER WITH IRBA AS AN RA 1 NOTE: The IRBA is in the process of reviewing their qualification requirements. The process described above is therefore subject to change. Both IRBA and SAICA will communicate with SAICA training officers and trainees in this regard in due course. 15
YOUR QUESTIONS ANSWERED What impact will the elective in my training programme have on my career as a CA(SA)? It will not impact on your future career as a CA(SA) at all. The elective is simply a skills area on which you will spend a bit more time in your training contract What happens if I change from one elective to another? You simply need to make sure that you have achieved the prescribed competencies for AT LEAST ONE elective skills area. Can I have more than one elective? The choice of elective, and the number of electives, is determined by the training office. SAICA requires AS A MINIMUM that you achieve the prescribed competencies for AT LEAST ONE elective skills area What happens if I move from one training office to another? The new training office may not offer the same elective as your previous training office. That means that you may have to begin from scratch to achieve the competencies for a new elective skills area. Can I negotiate with a prospective training office regarding my preferred elective? You can negotiate with your prospective training officer regarding your preferred elective. However, remember that the elective offered by a training office is determined by, inter alia, the nature, size, geographic location and industry of the training office. Where can I complete my SAICA training contract? You can complete your SAICA training contract at ANY organisation accredited by SAICA as a training office. SAICA training offices cover the public sector, public practice and commerce and industry. 16