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Professionalization of Accounting in South Africa. (Self-regulation (State…
Professionalization of Accounting in South Africa.
Gold and diamond mining brought a wave of expert advice and services from professionals
Big businesses were set up in SA and needed accountants
Regulation, professional closure and autonomy
Professional societies of the 4 colonies were organised to promote professional standards
Mainstream organisations were marginalized
State regulations promoted external accountability
Registration and licensing were the foundation of modern organisations
Professional monopolization occurred in ZAR too
Self-regulation
State & professionals regulated accounting
1894, 65 members formed the Institute of Accountants and Auditors in the South African Republic.
1895, South African Committee formed by Society of Accountants and Auditors
Organisations were formed after 1910 without statuory recognition
Draft union Accountants Registration Bill (1912) for status sanction but parliament opposed
South African Accounting Societies General Examining Board was established to focus on education
Special final examination set would qualify accountants in South Africa
Chartered Accountants Designation (Private) Act of 1927 was passed.
Accountability & National interest
1945, The 4 organisations authorized to use 'CA' designation
Treasury intervened by announcing intentions to provide registration and control and in 1946 there was still opposition
'South African' vs foreign interests emerged as central
Governmental intervention was due to protection of public interest
The Bill was drafted and sent to the Treasury and after amendments it was returned but there was opposition to the amendments
Insistence was placed on the 4 societies and the 1927 Designation Act
1951 Act
12 Feb 1951, Public Accountants and Auditors Act No. 51 of 1951 was introduced
Chartered societies gave up self-regulation for statuory sanctioning
6 members represented the PAAB
The PAAB registered all accountants and auditors in SA in a single Accountants Register and controlled exams
There still concerns including responsibilities of auditors regarding irregularities, promotion of sound practices & prudent governance, fee income or profit sharing & status of foreign accountants
Foreign residents would need to complete 5 years of articles.