SAICAS POLICY with regard to MEMBERS FROM OTHER PROFESSIONAL BODIES becoming SAICA MEMBERS (CAs(SA))

Section A: Ways to become a member of SAICA (CA(SA)) Section B: Details of SAICAs Qualifying Examinations

EXPLANATORY NOTES ON THE QUALIFYING EXAMINATIONS Part I of the Qualifying Examination (QE) is to be renamed the Initial Test of Competence (ITC) from 2013. This is SAICAs standard-setting examination. The Part II of the QE (the SAICA Financial Management exam) and the Public Practice Examination (PPE) (the exam of the Independent Regulatory Board for Auditors (IRBA)) is to be consolidated into one examination with a new format, as set out below, and be renamed the Assessment of Professional Competence (APC) as from 2014. The Part II exams, in its current format (i.e. the PPE and Financial Management) will therefore come to an end in 2013, with a supplementary exam being offered in 2014 for those candidates who fail these exams in 2013. References to Part II Financial

Management, the PPE or APC should be interpreted in the light of the year to which the relevant examination applies. The current Financial Management and Audit specialist courses will be replaced by a new professional programme concurrently with the change from Part II to the APC in 2014.

SECTION A WAYS TO BECOME A MEMBER OF SAICA (CA(SA)) Becoming a CA(SA) can be achieved in the following ways: 1 Completion of the SAICA defined qualification process by directly participating in the programme in South Africa; 2 3 Conversion from an Associate General Accountant (AGA(SA)); In terms of membership of bodies with whom SAICA has a signed reciprocal membership agreement (RMA); 4 In terms of special arrangements with 5 1 the Chartered Institute of Management Accountants (CIMA); the Swaziland Institute of Accountants (SIA); the Institute of Chartered Accountants in India; or

In terms of arrangements for members of professional accountancy bodies not covered above. The SAICA qualification process

The South African qualification process can be summarised as follows: 2 Completion of a three-year accredited undergraduate programme; Completion of a one-year accredited post-graduate programme (known as the Certificate in the Theory of Accounting (CTA) or equivalent programme); Completion of the ITC, which is the standard-setting examination; Completion of a three-year training contract at an accredited training office (either in commerce in the case of Part II of the QE or public practice in the case of the PPE); Completion of a specialism course / professional programme; Completion of Part II of the QE / PPE, or APC. Conversion from an AGA(SA)

Members who hold an AGA(SA) designation and who completed an AGA training contract with a Training Outside Public Practice (TOPP) organisation and who wish to convert to a CA(SA), must enter into a CA training contract with a TOPP organisation; apply for recognition of prior learning (note that 18 months training under the CA training contract is a requirement to be able to write Part II of the QE / APC); obtain a CTA and pass the ITC; and 3

complete the specialist course / professional programme; and pass Part II / the APC.

AGA members who completed their AGA training contract with a TOPP organisation and wish to become a registered accountant should make enquiries directly with the IRBA at 087 940 8800. 3 3.1 Membership of a body with whom SAICA has a reciprocal membership agreement Reciprocal membership agreements (RMA)

SAICA has RMAs with the following chartered accountancy bodies. Members of these professional bodies can apply for SAICA membership under certain conditions and provided they meet the criteria set out below. The Institute of Chartered Accountants in England and Wales (ICAEW) The Institute of Chartered Accountants in Australia (ICAA) The Canadian Institute of Chartered Accountants (CICA) The Institute of Chartered Accountants in Ireland (ICAI) The Institute of Chartered Accountants of Scotland (ICAS) The New Zealand Institute of Chartered Accountants (NZICA) The Hong Kong Institute of Certified Public Accountants (HKICPA). The RMA is applicable to persons who qualified with the HKICPA from 1 January 2006 onwards. Applications for membership with SAICA from persons who qualified between the period 19992005 will be evaluated on a case-by-case basis. The Institute of Chartered Accountants of Zimbabwe (ICAZ) The Institute of Chartered Accountants of Namibia (ICAN). (The mutual recognition agreement is in the process of being finalised.)

Conditions Members of the above bodies must have completed both the full education programme and all of the examination requirements of the institute with whom they are registered. No additional conversion exams are required for membership purposes for such members. The RMAs exclude persons who obtained membership of one of the above bodies by means of affiliation or exemption from all or part of the education programmes. Such persons will thus NOT be eligible for membership of SAICA via this route. Criteria for becoming a member of SAICA On joining Be a member in good standing of one of the above bodies; and Maintain membership of the home body.

Ongoing (after obtaining membership) 3.2 Comply with SAICAs continuing professional development (CPD) obligations and make an annual declaration that the member has done so; Comply with the SAICA Code of Ethics; and Maintain membership of the home body. Partially qualified individuals of abovementioned institutes Such members may write to SAICA at isaacm@saica.co.za, furnishing full details of the processes (academic and/or practical training) already completed through the members institute, for evaluation; and The SAICA secretariat will then provide detailed feedback, on a case-by-case basis, with regard to further requirements for possible membership of SAICA. 4 4.1 Special arrangements CIMA members

A CIMA member wishing to become a CA(SA) can only enter into a training contract for the Financial Management elective (i.e. Internal Audit, Risk Management & Governance or Financial Management or Management Decision-making) with a training office accredited by SAICA for this elective, and is required to 5

complete a one-year post-graduate accredited programme (a CTA or equivalent programme); pass the ITC; and enter into a three-year training contract and apply for recognition of prior learning, of which a maximum of 12 months will be granted as remission towards the three-year training contract (i.e. he/she will be required to serve a two-year training contract at an approved training office).

CIMA members will be exempt from the financial management specialism course / professional programme as well as the Part II QE / APC.

CIMA

members

may

apply

for

exemption

on

the

prescribed

form,

obtainable

from

isaacm@saica.co.za

For requirements for SAICA members who wish to become CIMA members, see www.saica.co.za. Path: Members> CIMA Recognition 4.2 Swaziland Institute of Accountants (SIA)

SIA members wishing to become CAs(SA) must fulfil the following requirements: Complete a three-year training contract at an accredited training office in Swaziland (in public practice). Training contracts are registered and administered by SIA and their training programme is evaluated and recognised by SAICA; Complete a one-year post-graduate accredited programme at an accredited education institution in South Africa (a CTA or equivalent programme); Pass the ITC (The SIA writes the same exam as set by SAICA); Successfully complete a specialist diploma / professional programme; and Complete the IRBA PPE / APC.

Once members have completed their training contracts and passed the ITC and PPE / APC, they must apply for membership of the SIA; apply for membership of SAICA; maintain membership of the SIA home body; comply with SAICAs CPD obligations and make an annual declaration that they have done so; and 6

 4.3

comply with the SAICA Code of Ethics. Institute of Chartered Accountants in India (ICAI)

Members of the Institute of Chartered Accountants in India who wish to become members of SAICA are required to (a) complete a one-year post-graduate accredited programme at an accredited education institution in South Africa (a CTA or equivalent programme) (b) (c) (d) pass the ITC; successfully complete a specialist diploma / professional programme; and pass Part II / the APC.

With regard to training, the member must fulfil the following conditions. These are based on the Training Manual published and issued by the Institute of Chartered Accountants in India in 1994, and which has in principle been approved by the SAICA Training Requirements Committee (TRECO): Provide SAICA with documentary evidence of experience gained during the period of practical training; Satisfy TRECO that his/her practical training was relevant by completing a TIPP 5 form (relating to recognition of prior learning), which must be signed by the applicant as well as the training officer under whom the training contract was served. The completed, signed document must be faxed to Isaac Mgidi at 011 621 6836; Wait for the outcome of the evaluation of the TIPP 5 form before applying to write any SAICA examinations; In a case where TRECO does not grant an exemption with regard to practical training already completed, the member will be required to enter into a three-year training contract at an accredited training office (either in commerce or public practice). In a case where TRECO does grant full recognition of prior learning exemption, the member must comply with the following requirements: Complete the ITC; Complete the Part II / APC; Apply for membership of SAICA.

Conditions once membership of SAICA gained Maintain membership of his/her home body;

Comply with SAICAs CPD obligations and make an annual declaration that the member has done so; and Comply with the SAICA Code of Ethics.

Arrangements for members from professional accountancy bodies not covered above

5.1

Formalised recognition of other professional accounting bodies

SAICA recognises the need to grant membership to members of other professional accounting bodies whose members meet SAICAs competency requirements (defined for purposes of recognition at point of entry to the profession).

It is envisaged by SAICA that recognition is likely, in most cases, to be reciprocal (both bodies evaluate

and recognise each other in terms of their own recognition principles and criteria). However, this document only addresses SAICA requirements for recognition of another professional body. Other professional bodies will have their own requirements with which SAICA will have to comply if mutual recognition is sought.

The requirements, for other professional accounting bodies to achieve recognition by SAICA, after formal application, can be found on the SAICA website www.saica.co.za: Path: Members r Training r Learners & Students then select Recognition of other professional bodies under any of these tabs

5.2

Requirements for members of such other professional accountancy bodies

The following are requirements for persons who belong to professional bodies not covered in sections 3 and 4 above, and who wish to become members of SAICA: Their educational qualification(s) must be evaluated by an education institution in South Africa whose programmes are accredited by SAICA for purposes of the one-year postgraduate accredited programme (the CTA or equivalent programme). The list of accredited educational institutions can be found at www.saica.co.za Path: Learners & Students > Information of Education Providers; The completion of the accredited programme will allow such members entry to the ITC, which must be written and passed; 8

The members must further satisfy TRECO that their practical training was relevant by completing a TIPP 5 form (relating to recognition of prior learning), which must be signed by the applicant as well as the training officer under whom the training contract was served. The completed, signed document must be faxed to Isaac Mgidi at 011 621 6836 for evaluation by TRECO.

In a case where TRECO does not grant an exemption with regard to practical training already completed, the member will be required to enter into a three-year training contract at an accredited training office (either in commerce or public practice).

In a case where TRECO does grant full recognition of prior learning exemption, the member must comply with the following requirements: Complete a specialist course / professional programme in either auditing or financial management (depending on training route selected); Write Part II / the PPE, or the APC, depending on the training route selected and specialist course completed.

SECTION B INFORMATION ON THE SAICA QUALIFYING EXAMINATIONS 1 The Initial Test of Competence

From 2013 the ITC will be written in January and June. This examination consists of four papers. Each paper counts 100 marks and candidates are allowed 30 minutes reading time and 150 minutes writing time.

The ITC tests the integrated application of cognitive knowledge. It covers the body of knowledge for Strategy, risk management and governance Auditing and assurance Accounting and external reporting Decision making and control Financial Management Taxation.

Communication skills and ethics are also tested.

Part II of the Qualifying Exam / Assessment of Professional Competence

Part II (Financial Management) of the QE is currently written in November. Until the end of 2013, the examination will consist of two papers of 100 marks each and candidates are allowed 20 minutes reading time and 150 minutes writing time. Part II is skills orientated and aimed at testing the integrated practical knowledge gained in professional practice. From 2014 the APC will be written, which will assess professional competence by means of one multidisciplinary case study.

Examinable pronouncements for the Qualifying Examinations

Information on the examinable pronouncements and Part II syllabus can be found at the SAICA website at www.saica.co.za: Path: Learners & Students > Examinations > Information on what will be examined Note that the examinable pronouncements and syllabus may change from year to year.

Prescribed fees

The prescribed fees for the ITC and Part II / APC can be found on www.saica.co.za Path: Learners & Students > Examinations > Exam Information > Dates and Fees for forthcoming examinations Applications to write the qualifying examination must be made online at www.saica.co.za on or before the closing date, which shall be announced by SAICA not less than three months prior to the date of the examination and published on the SAICA website. For general information on the examinations visit www.saica.co.za Path: Learners & Students > Examinations > Exam Information

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