Southern African Journal of Accountability and Auditing Research, 2010
One of the provisions in the Companies Act of 2008 which is particularly significant to the audit... more One of the provisions in the Companies Act of 2008 which is particularly significant to the auditing profession in South Africa is the introduction of the "independent review of financial statements of certain non-public interest companies" as an alternative to the conventional audit of financial statements which is required for public and public interest companies. However, no regulations have yet been provided regarding the manner, form and procedures for the conduct of an independent review, nor have the professional qualifications of persons who may conduct such reviews yet been defined. This study is a background study and analysis in order to provide a better understanding of this alternative to an audit of a company's annual financial statements. The outcome of the research could be instrumental in the development of relevant regulations for the independent review of company financial statements in South Africa.
Southern African Journal of Accountability and Auditing Research, 2011
One of the pressing issues facing the accountancy profession today is the pervasive shortage of q... more One of the pressing issues facing the accountancy profession today is the pervasive shortage of qualified accountants, both in commerce and industry, and in private practice, and especially from the black and female segments of the South African population. This highlights the need for professional institutes and educational institutions that offer programmes for prospective Chartered Accountants (CA(SA)s), to take an in-depth look at what they can do to improve the intake and retention of prospective accountants. This paper presents the results of a survey conducted amongst final year auditing students at the University of South Africa (Unisa) that sought to identify, amongst others, which factors influenced students in their career choice to become accountants and to study at Unisa, and what preferences they have regarding student support programmes, in order to propose initiatives that could increase the intake and retention of prospective accountants. Understanding the perceptions and preferences of prospective accountants is essential in order to formulate initiatives that could increase the intake of and improve the retention of prospective accountants.
Southern African Journal of Accountability and Auditing Research, 2005
The way in which the auditing profession is regulated is one of the factors adding value to, or u... more The way in which the auditing profession is regulated is one of the factors adding value to, or undermining the value of the audit function. This article identifies the factors that are important to a regulatory system and evaluates the self-regulating structure of the auditing profession in terms of those factors. It appears that those elements that are important to a regulatory system are not adequately addressed by the auditing profession's current regulations. The fundamental reason for this can be traced back to the composition and financing of the regulator.
Southern African Journal of Accountability and Auditing Research, 2008
As a result of the worldwide spate of financial scandals, society has lost much of its confidence... more As a result of the worldwide spate of financial scandals, society has lost much of its confidence in the auditing profession because of a growing perception that the profession does not act in the public interest. Ineffective regulation is one of the key factors detracting from the value of the audit function, thereby undermining public confidence in the profession as a whole. The opportunity has been grasped in South Africa, as in some other countries, to make changes to the regulatory mechanisms of the auditing profession in an effort to restore trust in the profession. In this article the regulation of the auditing profession in South Africa, according to the Auditing Profession Act, 2005, (implemented in April 2006), is evaluated against the factors that are of importance to an effective and creditable regulatory system with reference to the regulation of the profession in some other English speaking countries with which the South African auditing profession has historical and professional ties. It appears that those factors that are important to a regulatory system are to a large degree addressed by the regulation of the auditing profession in South Africa. This should contribute to restore the trust in the auditing profession.
Southern African Journal of Accountability and Auditing Research, 2011
The Companies Act of 2008 introduces the independent review of financial statements of certain no... more The Companies Act of 2008 introduces the independent review of financial statements of certain non-public interest companies as an alternative to the conventional audit of financial statements which is currently required for all companies. The objective of the study reported on here is to determine the perceptions of Registered Auditors regarding independent reviews. A questionnaire was used in order to obtain the perceptions of Registered Auditors regarding independent reviews. This questionnaire covered the nature of an independent review, determinants of audit exemption, performing an independent review, and practitioners deemed competent to perform an independent review. The study also sought to determine whether Registered Auditors qualify to perform independent reviews. The study confirms the need for a principle-based stand-alone set of independent review standards so as to create a comprehensive body of guidance for independent review engagements. The study also reveals that Registered Auditors already meet the public interest requirements to perform independent reviews.
Southern African Journal of Accountability and Auditing Research, 2011
The Companies Act of 2008 introduces the independent review of financial statements of certain no... more The Companies Act of 2008 introduces the independent review of financial statements of certain non-public interest companies as an alternative to the conventional audit. The audit of financial statements can only be performed by a Registered Auditor and is currently still required for all companies. The objective of the study is to determine the perceptions of Chartered Accountants (South Africa) regarding independent reviews. A questionnaire was used in order to obtain the perceptions of Chartered Accountants (South Africa) regarding independent reviews. This questionnaire covered the nature of an independent review, determinants of audit exemption, performing an independent review, and practitioners deemed competent to perform an independent review. The study also evaluated whether Chartered Accountants (South Africa), who are not allowed to perform audits, do in fact qualify to perform independent reviews. The respondents confirm the need for a principle-based stand-alone set of independent review standards as this is likely to clarify the terminology and to enhance the quality of reviews. The study also reveals that Chartered Accountants (South Africa) meet the requirements to perform independent reviews. However, the Independent Regulatory Board for Auditors should oversee the regulation of Chartered Accountants (South Africa) performing independent reviews to ensure that independent reviews are also performed in the public interest.
As a third of all directors in South Africa are chartered accountants (CAs), this research examin... more As a third of all directors in South Africa are chartered accountants (CAs), this research examined the strategising practices of CA strategists in the mining industry. Drawing on the strategy-as-practice perspective, the research aimed to answer questions pertaining to which strategy tools CA strategists use, and how their accounting background informs their decisions on which tools to use and how to use them. Empirical data were produced through semi-structured individual interviews with CA strategists selected through purposive and snowball sampling. Data were analysed through conversation analysis using thematic coding. Findings portray CA strategists as craftspeople who adapt and interpret strategy tools from an accounting perspective to serve the requirements of the situation they face. The research confirmed wide use of accounting tools in strategising. The research found that the model of strategising, albeit deliberate or emergent, as well as the educational background of t...
Southern African Journal of Accountability and Auditing Research, 2008
Recent fraud-related reports and surveys show that fraud is an unwelcome reality all over the wor... more Recent fraud-related reports and surveys show that fraud is an unwelcome reality all over the world. In South Africa it is expected to increase in future, causing organisations to suffer material financial losses and reputational damage. The urgent need to combat fraud, public expectations regarding the auditors' responsibilities with regard to fraud and newly introduced fraud-related regulations, standards and guidance, place greater responsibility on auditors to detect and investigate fraud. Most accounting graduates have received little formal education about fraud. Teaching auditing students the basic knowledge and skills of fraud examination should improve their effectiveness in this regard.
In addition to audit risk, an auditor is also exposed to business risk. In this paper, an auditor... more In addition to audit risk, an auditor is also exposed to business risk. In this paper, an auditor's business risk is described and the relationship between audit risk and business risk is indicated. A method is developed whereby an auditor's business risk is determined during client acceptance decisions and when the audit approach is developed. The method proposes that an auditor should first determine audit risk and then his business risk, and then adjust the audit risk to give the desired level of business risk. The auditor thus not only complies with the requirements of auditing standards, but will also be able to limit the risk of loss to his professional practice.
One of the provisions in the Companies Act 2008 which is particularly significant to the auditing... more One of the provisions in the Companies Act 2008 which is particularly significant to the auditing and accounting professions in South Africa is the introduction of the independent review of financial statements of certain nonpublic interest companies as an alternative to the conventional audit of financial statements which is currently required for all companies. The Companies Act 2008 provides for regulations to be drawn up by the Minister, defining the categories of private companies that are required to have their annual financial statements audited; the manner, form and procedures for the conduct of an independent review, and prescribing the professional qualifications of persons who may conduct such independent reviews of company financial statements in South Africa.
One of the provisions in the Companies Act 2008 which is particularly significant to the auditing... more One of the provisions in the Companies Act 2008 which is particularly significant to the auditing profession in South Africa is the introduction of the independent review of financial statements of certain non-public interest companies as an alternative to the conventional audit of financial statements which is currently required for all companies. The Companies Act 2008 provides for regulations regarding independent reviews to be drawn up by the Minister. This article presents a background study and analysis of what constitutes an independent review in order to provide a better understanding of this alternative to an audit of a company's annual financial statements. It seems that the Draft Regulations regarding which companies should be audited and which independently reviewed will achieve the Act's primary objective of the protection of the public interest as they are primarily based on a company's activities and not on quantitative thresholds such as turnover and assets. A robust and well designed set of assurance standards for independent reviews is needed to provide the necessary guidance to practitioners who will conduct independent reviews. Contrary to the requirements in the Draft Regulations, it is suggested that an independent review should be performed by a person who is a member in good standing of a professional body accredited by the Independent Regulatory Board for Auditors, and not the International Federation of Accountants.
Journal of Accounting & Organizational Change, 2021
Purpose The formal adoption of internal auditing within the South African public sector was made ... more Purpose The formal adoption of internal auditing within the South African public sector was made compulsory by the Public Finance Management Act, No. 1 of 1999. Despite internal auditing’s primary role of adding value and assisting organisations to accomplish pre-defined strategic objectives, the increasing frequency of service delivery protests in South Africa, suggests that mandatory internal auditing may not have contributed to improving public sector performance and enhancing service delivery, as envisaged. This paper aims to identify the factors preventing internal audits from effectively contributing to improved public sector performance and service delivery. Design/methodology/approach The study adopted a sequential mixed-methods research approach. Firstly, a survey instrument was used to collect empirical data from survey respondents at South African national government departments. Secondly, semi-structured interviews and focus group discussions were held with a purposively...
Despite being extensively researched since audit committees emerged early in the 20th century, th... more Despite being extensively researched since audit committees emerged early in the 20th century, the focus has tended to be on public sector organisations and large listed public companies. This paper uses an explorative qualitative case-study research design, to understand the impact of the characteristics of audit committee member on audit committee effectiveness in a purposively selected small to medium-sized company. The paper provides important insights into the impact of audit committee member qualifications, experience and independence, on how the audit committee discharges its responsibilities. Although the leadership of the audit committee chairperson appears to have enhanced governance practices, the atypical role of mentoring the newly appointed chief financial officer, questions whether the audit committee chairperson, and accordingly the audit committee, is truly independent, or whether it has succumbed to the familiarity threat. Despite its South African orientation, the worldwide importance of small to medium-sized enterprises gives the study globally relevance.
Southern African Journal of Accountability and Auditing Research, 2010
One of the provisions in the Companies Act of 2008 which is particularly significant to the audit... more One of the provisions in the Companies Act of 2008 which is particularly significant to the auditing profession in South Africa is the introduction of the "independent review of financial statements of certain non-public interest companies" as an alternative to the conventional audit of financial statements which is required for public and public interest companies. However, no regulations have yet been provided regarding the manner, form and procedures for the conduct of an independent review, nor have the professional qualifications of persons who may conduct such reviews yet been defined. This study is a background study and analysis in order to provide a better understanding of this alternative to an audit of a company's annual financial statements. The outcome of the research could be instrumental in the development of relevant regulations for the independent review of company financial statements in South Africa.
Southern African Journal of Accountability and Auditing Research, 2011
One of the pressing issues facing the accountancy profession today is the pervasive shortage of q... more One of the pressing issues facing the accountancy profession today is the pervasive shortage of qualified accountants, both in commerce and industry, and in private practice, and especially from the black and female segments of the South African population. This highlights the need for professional institutes and educational institutions that offer programmes for prospective Chartered Accountants (CA(SA)s), to take an in-depth look at what they can do to improve the intake and retention of prospective accountants. This paper presents the results of a survey conducted amongst final year auditing students at the University of South Africa (Unisa) that sought to identify, amongst others, which factors influenced students in their career choice to become accountants and to study at Unisa, and what preferences they have regarding student support programmes, in order to propose initiatives that could increase the intake and retention of prospective accountants. Understanding the perceptions and preferences of prospective accountants is essential in order to formulate initiatives that could increase the intake of and improve the retention of prospective accountants.
Southern African Journal of Accountability and Auditing Research, 2005
The way in which the auditing profession is regulated is one of the factors adding value to, or u... more The way in which the auditing profession is regulated is one of the factors adding value to, or undermining the value of the audit function. This article identifies the factors that are important to a regulatory system and evaluates the self-regulating structure of the auditing profession in terms of those factors. It appears that those elements that are important to a regulatory system are not adequately addressed by the auditing profession's current regulations. The fundamental reason for this can be traced back to the composition and financing of the regulator.
Southern African Journal of Accountability and Auditing Research, 2008
As a result of the worldwide spate of financial scandals, society has lost much of its confidence... more As a result of the worldwide spate of financial scandals, society has lost much of its confidence in the auditing profession because of a growing perception that the profession does not act in the public interest. Ineffective regulation is one of the key factors detracting from the value of the audit function, thereby undermining public confidence in the profession as a whole. The opportunity has been grasped in South Africa, as in some other countries, to make changes to the regulatory mechanisms of the auditing profession in an effort to restore trust in the profession. In this article the regulation of the auditing profession in South Africa, according to the Auditing Profession Act, 2005, (implemented in April 2006), is evaluated against the factors that are of importance to an effective and creditable regulatory system with reference to the regulation of the profession in some other English speaking countries with which the South African auditing profession has historical and professional ties. It appears that those factors that are important to a regulatory system are to a large degree addressed by the regulation of the auditing profession in South Africa. This should contribute to restore the trust in the auditing profession.
Southern African Journal of Accountability and Auditing Research, 2011
The Companies Act of 2008 introduces the independent review of financial statements of certain no... more The Companies Act of 2008 introduces the independent review of financial statements of certain non-public interest companies as an alternative to the conventional audit of financial statements which is currently required for all companies. The objective of the study reported on here is to determine the perceptions of Registered Auditors regarding independent reviews. A questionnaire was used in order to obtain the perceptions of Registered Auditors regarding independent reviews. This questionnaire covered the nature of an independent review, determinants of audit exemption, performing an independent review, and practitioners deemed competent to perform an independent review. The study also sought to determine whether Registered Auditors qualify to perform independent reviews. The study confirms the need for a principle-based stand-alone set of independent review standards so as to create a comprehensive body of guidance for independent review engagements. The study also reveals that Registered Auditors already meet the public interest requirements to perform independent reviews.
Southern African Journal of Accountability and Auditing Research, 2011
The Companies Act of 2008 introduces the independent review of financial statements of certain no... more The Companies Act of 2008 introduces the independent review of financial statements of certain non-public interest companies as an alternative to the conventional audit. The audit of financial statements can only be performed by a Registered Auditor and is currently still required for all companies. The objective of the study is to determine the perceptions of Chartered Accountants (South Africa) regarding independent reviews. A questionnaire was used in order to obtain the perceptions of Chartered Accountants (South Africa) regarding independent reviews. This questionnaire covered the nature of an independent review, determinants of audit exemption, performing an independent review, and practitioners deemed competent to perform an independent review. The study also evaluated whether Chartered Accountants (South Africa), who are not allowed to perform audits, do in fact qualify to perform independent reviews. The respondents confirm the need for a principle-based stand-alone set of independent review standards as this is likely to clarify the terminology and to enhance the quality of reviews. The study also reveals that Chartered Accountants (South Africa) meet the requirements to perform independent reviews. However, the Independent Regulatory Board for Auditors should oversee the regulation of Chartered Accountants (South Africa) performing independent reviews to ensure that independent reviews are also performed in the public interest.
As a third of all directors in South Africa are chartered accountants (CAs), this research examin... more As a third of all directors in South Africa are chartered accountants (CAs), this research examined the strategising practices of CA strategists in the mining industry. Drawing on the strategy-as-practice perspective, the research aimed to answer questions pertaining to which strategy tools CA strategists use, and how their accounting background informs their decisions on which tools to use and how to use them. Empirical data were produced through semi-structured individual interviews with CA strategists selected through purposive and snowball sampling. Data were analysed through conversation analysis using thematic coding. Findings portray CA strategists as craftspeople who adapt and interpret strategy tools from an accounting perspective to serve the requirements of the situation they face. The research confirmed wide use of accounting tools in strategising. The research found that the model of strategising, albeit deliberate or emergent, as well as the educational background of t...
Southern African Journal of Accountability and Auditing Research, 2008
Recent fraud-related reports and surveys show that fraud is an unwelcome reality all over the wor... more Recent fraud-related reports and surveys show that fraud is an unwelcome reality all over the world. In South Africa it is expected to increase in future, causing organisations to suffer material financial losses and reputational damage. The urgent need to combat fraud, public expectations regarding the auditors' responsibilities with regard to fraud and newly introduced fraud-related regulations, standards and guidance, place greater responsibility on auditors to detect and investigate fraud. Most accounting graduates have received little formal education about fraud. Teaching auditing students the basic knowledge and skills of fraud examination should improve their effectiveness in this regard.
In addition to audit risk, an auditor is also exposed to business risk. In this paper, an auditor... more In addition to audit risk, an auditor is also exposed to business risk. In this paper, an auditor's business risk is described and the relationship between audit risk and business risk is indicated. A method is developed whereby an auditor's business risk is determined during client acceptance decisions and when the audit approach is developed. The method proposes that an auditor should first determine audit risk and then his business risk, and then adjust the audit risk to give the desired level of business risk. The auditor thus not only complies with the requirements of auditing standards, but will also be able to limit the risk of loss to his professional practice.
One of the provisions in the Companies Act 2008 which is particularly significant to the auditing... more One of the provisions in the Companies Act 2008 which is particularly significant to the auditing and accounting professions in South Africa is the introduction of the independent review of financial statements of certain nonpublic interest companies as an alternative to the conventional audit of financial statements which is currently required for all companies. The Companies Act 2008 provides for regulations to be drawn up by the Minister, defining the categories of private companies that are required to have their annual financial statements audited; the manner, form and procedures for the conduct of an independent review, and prescribing the professional qualifications of persons who may conduct such independent reviews of company financial statements in South Africa.
One of the provisions in the Companies Act 2008 which is particularly significant to the auditing... more One of the provisions in the Companies Act 2008 which is particularly significant to the auditing profession in South Africa is the introduction of the independent review of financial statements of certain non-public interest companies as an alternative to the conventional audit of financial statements which is currently required for all companies. The Companies Act 2008 provides for regulations regarding independent reviews to be drawn up by the Minister. This article presents a background study and analysis of what constitutes an independent review in order to provide a better understanding of this alternative to an audit of a company's annual financial statements. It seems that the Draft Regulations regarding which companies should be audited and which independently reviewed will achieve the Act's primary objective of the protection of the public interest as they are primarily based on a company's activities and not on quantitative thresholds such as turnover and assets. A robust and well designed set of assurance standards for independent reviews is needed to provide the necessary guidance to practitioners who will conduct independent reviews. Contrary to the requirements in the Draft Regulations, it is suggested that an independent review should be performed by a person who is a member in good standing of a professional body accredited by the Independent Regulatory Board for Auditors, and not the International Federation of Accountants.
Journal of Accounting & Organizational Change, 2021
Purpose The formal adoption of internal auditing within the South African public sector was made ... more Purpose The formal adoption of internal auditing within the South African public sector was made compulsory by the Public Finance Management Act, No. 1 of 1999. Despite internal auditing’s primary role of adding value and assisting organisations to accomplish pre-defined strategic objectives, the increasing frequency of service delivery protests in South Africa, suggests that mandatory internal auditing may not have contributed to improving public sector performance and enhancing service delivery, as envisaged. This paper aims to identify the factors preventing internal audits from effectively contributing to improved public sector performance and service delivery. Design/methodology/approach The study adopted a sequential mixed-methods research approach. Firstly, a survey instrument was used to collect empirical data from survey respondents at South African national government departments. Secondly, semi-structured interviews and focus group discussions were held with a purposively...
Despite being extensively researched since audit committees emerged early in the 20th century, th... more Despite being extensively researched since audit committees emerged early in the 20th century, the focus has tended to be on public sector organisations and large listed public companies. This paper uses an explorative qualitative case-study research design, to understand the impact of the characteristics of audit committee member on audit committee effectiveness in a purposively selected small to medium-sized company. The paper provides important insights into the impact of audit committee member qualifications, experience and independence, on how the audit committee discharges its responsibilities. Although the leadership of the audit committee chairperson appears to have enhanced governance practices, the atypical role of mentoring the newly appointed chief financial officer, questions whether the audit committee chairperson, and accordingly the audit committee, is truly independent, or whether it has succumbed to the familiarity threat. Despite its South African orientation, the worldwide importance of small to medium-sized enterprises gives the study globally relevance.
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Papers by Elza Odendaal