News Articles and Press & media releases

Below are just a few of the latest 2018 press releases:

SAICA alerts SGBs to beware of fake auditors and accounting officers

Last Updated Jun 2018

Johannesburg, 15 June 2018 – As the 30 June 2018 deadline for submission of audited or examined financial statements for public schools looms, The South African Institute of Chartered Accountants (SAICA) alerts public School Governing Bodies (SGBs) to be aware of individuals and firms that will be holding out as auditors or accounting officers and offering to provide audit or examination services to the schools.

The South African Schools Act (SASA) requires that only a person registered as an auditor in terms of the Auditing Profession Act, 2005 (Act No. 26 of 2005) may audit the records and financial statements of a public school.  Where this is not reasonably practicable, SASA provides that the governing body of a public school must appoint a person to examine and report on the records and financial statements, who is qualified to perform the duties of an accounting officer in terms of section 60 of the Close Corporations Act, 1984 (Act No. 69 of 1984); or is approved by the Member of the Executive Council (MEC) for this purpose. Circular M1 of 2017 issued by the National Department of Education states that SGBs can only appoint an Accounting Officer if approval has been obtained from the MEC.

All auditors must be registered with the Independent Regulatory Board for Auditors (IRBA) and their registration can be confirmed on IRBA’s website at www.irba.co.za. All accounting officers must be registered with at least one of the following accountancy bodies:

 

“School governing bodies should insist on letters from accounting bodies to confirm the registration of the auditors and accounting officers as the use of unqualified individuals and firms result in shady work being performed and the issuance of reports that are not in line with required standards,” says Julius Mojapelo, SAICA Senior Executive: Public Sector. “Such reports are misleading to parents, donors and the departments of education and denies such parties the information required to hold the governing body accountable for the management of school funds. This further brings the Chartered Accountancy and Auditing profession into disrepute by individuals who are not even members of the profession.”

About SAICA 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 Institute provides a wide range of support services to more than 46 000 members and associates who are chartered accountants [CAs(SA)], as well as AGAs(SA) and ATs(SA), who hold positions as CEOs, MDs, board directors, business owners, chief financial officers, auditors and leaders in every sphere of commerce and industry, and who play a significant role in the nation’s highly dynamic business sector and economic development.

SAICA Media Contact Kulani Chauke Communication Coordinator: Corporate SAICA Brand Division 011 479 0698 kulanic@saica.co.za

Subject Matter Specialist Julius Mojapelo Senior Executive: Public Sector SAICA Standards Division Tel: 011 621 6738 juliusm@saica.co.za