Is the ACCA accreditation the start of widening the auditor pathway?

You no longer need to be a CA(SA) to become a registered auditor. In a recent interview, Imre Nagy explains why ACCA was accredited and that this may only be the beginning. 

Recently IRBA accredited the Association of Chartered Certified Accountants (ACCA) as, “an additional professional accounting body providing another route to the audit specialisation programme for aspiring registered auditors,” according to its media statement. 

Previously aspiring auditors had to be qualified chartered accountants with SAICA. Imre Nagy, CEO of IRBA, explains what brought about the change. 

The short answer

“If you go to our Act, which was written back in 2005, it mandated IRBA to accredit professional bodies,” explains Nagy. “It goes so far as to say, ‘when a professional body applies, and they meet the criteria, the board must consider and accredit them.” 

“Currently, we have two other bodies that have indicated to us their intention to apply. We’ve got the framework in place now with the ACCA. So it’s something that we have to consider when they apply.”

The two bodies haven’t made a formal written application, so Nagy won’t name them at this stage.

“If you look at other countries, it’s seen as healthy to have multiple professional bodies and no dominant body in any given scenario.”

The longer answer

It’s about broadening the audit pathway.

“We would like to see numbers coming through different routes over the next three to five years and even more bodies applying,” says Nagy

“Most firms I spoke with welcomed the move because they already have ACCAs working in their offices and on their audit teams.”

Nagy is concerned that the number of auditors is dwindling, especially those with non-assurance status. He also notes that auditors and accountants are in demand globally and that the ACCA has audit rights in many countries, especially Africa.  

“We are proactively looking at and recognising that we live in a more open world where younger people want to move around. They want flexibility and acknowledgement all over the world. You’ll see professional bodies make overseas trips and meet with other countries to build up that reciprocity so that when people qualify, the world is open to them to either stay or go.

“Equally, if people want to come here, we shouldn’t shut the door on them. If they meet the criteria, we should be able to open our doors. But yes, the accreditation is a strategic move entrenched in our act as far back as the early 2000s.”

A broader pathway doesn’t equate to an easier pathway

There is a perception among CA(SA)s that their qualifications are more rigorous, their designation more prestigious, and perhaps a view that RA's coming from a different background will result in a drop-off in quality. 

“It might be called different things, but when we assessed SAICA and ACCA application exams, it’s at the same sort of level,” says Nagy. The ACCA recently published its list of prerequisites and necessary exams for those thinking of applying for IRBA’s audit development program. 

“They still need to follow the South African route, meet that high standard that we set because we don’t want anyone to come in and become an auditor. We want people who choose auditing with the right integrity, ethical background, ethical orientation and competency.”

IRBA intends to keep a sharp eye on both audit routes.

“We are ready, also in the monitoring process of ACCA. We visit SAICA every year. We assess their exams, we assess their process. Nothing will be different for the ACCA, it's exactly the same model.

“And yes, we will keep a close eye on the consistency and perceptions around potential inconsistency. We will have to manage that very closely.”