2020 Technologies to Learn

1. Artificial Intelligence as a service

2. Cybersecurity
3. Hyper Automation
4. DevOps
5. Internet of Things
6. 3D Printing
7. DARQ
8. Big Data
9. 5G Technology
10. Cognitive Cloud Computing

10. Wireless power transmission

09. Augmented Reality and Virtual Reality

08. RPA – Robotic Process Automation

07. Quantum Computing

06. Internet of things

05. Blockchain

04. NLP & Voice Technology (national language processing)

03. Cloud Computing

02. 5G – 5th generation of cellular technology

01. Artificial Intelligence

11 Feb 2019

2019 Current and Future of the profession

Presenters: Doris Viljoen and Zanne Horrel

- More generations in the work place, generation gaps is widening.

- We are more connected to than ever before due to technological advances
- Computers are connected to each other and communicate to each other.
- We are more connected via the block chain.

- There is need for information to be disseminated now.

- We are now more global, we see the death of distance.

- We can work virtually

 Overarching trends
- More and more skills are required
- Listen to the world economic forum

Skills required for now and the future include:

- Analytical thinking
- Innovation,
- Active learning and learning strategies,
- Creativity, originality and initiative,
- Technology design and programming,
- Critical thinking and analysis,
- Complex problem solving

More responsible

Influence on the profession

- A lot of opportunities present themselves
- CAs will need to measure, assure and report on progress

SA Trends and Issues

- Education skills and development
- Inadequate skills
- Quality of the profession depends on the quality of candidates

ED-ISRS 4400 (Revised) Information and Discussion Forum

20 Feb 2019
SAICA
SAICA – SUMMARY OF WEBCASTS ATTENDED
1. International Standard on Related Services 4400
The need for revision of the extant standard
 AUP reports are used by a wide range of stakeholders
 The demand for AUP engagements continues to grow
 Significant changes in the business environment since the development of extant ISRS 4400
 More clarity required
Major changes in the Exposure Draft include the following:
A. Role of professional judgement in AUP
Professional judgement required in the application of AUP.

B. Independence requirements
Independence is not a precondition to accept the engagement
Transparency about independence (or lack thereof) is essential to the public interest
C. Findings
To use the word “findings” instead of “factual findings”
Findings are the factual results of procedures performed.
Findings are capable of being objectively verified and objectively described.
Findings to exclude opinions or conclusions in any form as well as any recommendations that the practitioner may
make.
C. Engagement acceptance and continuance

Misleading terminology in the engagement letter can contribute to:

 a) Confusion over what an AUP engagement entails
b) The expectation gap

D. Practitioner’s expert
If the practitioner can use the work of an expert with certain conditions.

E. AUP report
The practitioner to indicate that the AUP report is intended solely for the engaging party and the intended users.
This may be achieved by restricting the distribution or use of the agreed-upon procedures report
The ED shows the enhanced report content comparing the extant standard with the ED
F. Effective date
18 – 24 months period

G. Other amendments
The scope of the revised standard to includes non-financial subject matters

H. Quality Control
To be dealt with after revision of ISQC 1 by IAASB which is currently underway.

CODE OF PROFESSIONAL CONDUCT OF SAICA (REVISED 2018)

The presentation covered the following sections of the code:

- The structure of the code

- Fundamental Principles which are Integrity, Objectivity, Professional Competence and Due Care,
Confidentiality, and Professional Behaviour. Ethics was explained as more or less equivalent to morality,
doing good/right things. Moral standards include truth telling, freedom, equity, justice

Integrity was defined as doing the right thing even if no one is watching.
Integrity requires: being straightforward, being honest, fair dealings, not knowingly associated with
information which you believe is materially false or misleading, is provided recklessly, contains misleading
omissions.

Objectivity – not compromising professional or business judgements because of bias, conflict of interest,
undue influence of others. Not undertaking professional activity if your judgement is unduly influenced by
a circumstance or relationship.

Professional competence and due care – being able to do your job properly.

Confidentiality – Facilitates free flow of information. Avoiding inadvertent disclosure including social
environment particularly to a close associate or immediate family.
Subordinates to also respect confidentiality.

Professional behaviour – Stick to the law. Avoiding conduct that a reasonable person would think
discredits the profession.

- The Conceptual Framework

3 parts (1) Identifying which fundamentally principle is under threat, (2) Evaluating the treats, (3)
Addressing the threat. The 5 categories of threats being self-interest, self-review, advocacy, familiarity
and intimidation. Worked through case studies identifying, evaluating and addressing threats.

- NOCLAR – The response framework to NOCLAR was also discussed

 - 1) NOCLAR not applicable to (i) personal, (ii) inconsequential (iii) non-compliance by an outsider
- 2) Obtain an understanding i.e. nature and circumstance of non-compliance, application of laws &
regulations, consequences of non-compliance.
- 3) Discuss the matter with those charged with governance, immediate superiors.
- 4) Determine of further action is needed.
- 5) Decide on further action.
- 6) Document the matter, discussions and outcomes.

Psychology - Watched videos that demonstrated how subordinates do wrong things by simply carrying
out orders by superiors without exercising due care.

IFRS 9: Financial Instruments

Presenters: PWC’s Inform (Recorded Webinar)
Demystifying IFRS 9 – Impairment
Duration: 1.6 hours

IFRS 9 introduces a new impairment model based on expected losses (a forward-looking model), rather than
incurred loss model (backward-looking) as per IAS 39
Impairment is based on the risk of default not on the risk of loss.
Moves from the incurred loss model to the expected credit loss model.
A 12-month expected credit loss is booked when a loan is originated (stage one).
Entity monitors the loan on a continual basis.
When there is a significant increase in expected credit losses the loan moves from stage one to two or three.
The level of loss provision steps up from 12 months expected losses to lifetime expected losses.

IRMSA Risk Report

South Africa Risks 2019

Identified Risks include the following:

1 Structurally high unemployment
2 Growing income disparity and inequality
3 Failure of governance - public
4 Unmanageable fraud and corruption
5 Inadequate and/or sub-standard education and skills development
6 Energy price shock
7 Labour unrest and strike action
8 National political uncertainty/instability
9 Cyber-attacks (ransom, algorithm shutdown of the internet of things)
11 Skills shortage including the ability to attract and retain top talent
10 Lack of leadership

Analysed the detailed analysis for each risk identified by subject matter experts (SMEs) including:
- Causes
- Treatment options
- Expected impact of the treatment

Treatment options include:

• Implement consequence management:
• Implement effective control frameworks
• Improve quality of assurance on adequacy and effectiveness of control frameworks
• Implement conflict of interest declarations and lifestyle audits
• Raise effective public institutions to implement effective consequence management.
• Address incompetence at Board, Exco and Accounting Authority levels.
• Address low productivity in schools, workplace and workforce
• Change governance structures to accommodate speed of change

Di Seccombe
UCT Graduate School of Business (6 Nov 2013)
“What all taxpayers literally can’t afford not to know”

TAX ADMINISTRATION ACT, 2011

The purpose of this Act is to ensure the effective and efficient collection of tax.
Tax administration act administers all taxes except customs and excise.
Tax Ombud to help taxpayers when procedures have not been followed by SARS or when the rights of taxpayers
have been flouted. The Ombud is a procedural administrative watchdog.
Decisions of the Ombud not binding on SARS. The Ombud compiles an annual report on procedural irregularities.

Sec. 26 – Third party return. Huge information gathering powers given to SARS. A third party can give SARS
information about a taxpayer directly to SARS. Third parties to be listed in the gvt gazette. E.g. banks

Inspection – Sars can arrive at your business premises unannounced/ can show up at your business premises.
Keep all records, properly, neatly and securely, safely and accessible to sars.

Just Cause – Just cause not to give requested information to SARS. Confidentiality clauses between you and your
client falls away. It doesn’t stand up when an organ of state requires information.

Audit – will be notified in writing about the date, scope of the audit.
Taxpayer to be kept informed about the progress of the audit – every 90 days.
Letter of findings within 90 days of the end of the audit

Jeopardy assessment – a brand new assessment. Can be issued even before the due date of the return, if SARS
feels that there is a threat to collect it waits for the due date.

A brand-new taxpayer – A responsible 3rd party

Created when the taxpayer who created the debt has no money to pay the tax debt.

S164 – Lodging an objection does not suspend the payment assessed. “Pay now and argue later”. If you don’t
want to pay, apply for a suspension.

Penalties
The admin non-compliance penalty. Administrative non-compliance penalties.
Understatement penalty – new penalty.

Taxation – Inhouse:
4 hours
6 September 2019
Widened my tax knowledge and experience through the compilation of data and electronic filing (e-filing) of the
following returns:
- VAT returns
- PAYE EMP201 returns (including IDL and UIF)
- Income tax returns (ITR14 and IRP6)

Review correct application of VAT Act, Income Tax Act and PAYE Act.

INTERPRETATION NOTE: NO. 47 (Issue 3)

WEAR-AND-TEAR OR DEPRECIATION ALLOWANCE

IFRS 15: REVENUE FROM CONTRACTS WITH CUSTOMERS

Presenters: IFRS Standards (Reading unverified)
Duration: 3 hours
Date – 28/09/2019

IFRS 15 introduces a new five step revenue recognition model, the five steps being:

1. Identify the contract(s) with the customer

One of the five criteria that must be met for a contract to exist is that it is probable the entity will collect the
consideration to which it is entitled

2. Identify the performance obligations in the contract

IFRS 15 refers to a “performance obligation” as a promised good or service (i.e., promise in a contract) that is
distinct.
 3. Determine the transaction price
The consideration that the customer will pay for the promised goods and/or services

4. Allocate the transaction price

The transaction price is allocated to all the performance obligations in the contract in proportion to the stand-
alone selling prices of each performance obligation.

5. Recognise revenue when a performance obligation is satisfied

l
IFRS 15 is based on the transfer of control as opposed to the transfer of risks and rewards.

IFRS 16: Leases

Presenters: IFRS Foundation
Duration: 2 hours
Date: 07/09/2019

IFRS 16 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all
leases.
The objectives of the new standard are:
To get an accurate picture of a company’s lease assets and liabilities
To facilitate comparison of companies that lease assets with those that buy assets
To get a clearer picture of the amount of off balance sheet obligations.

Substantially there are no changes to lessor accounting

Changes to lessee accounting are that former operating leases capitalised. And all leases accounted for as finance
leases.

Impact on Statement of Financial Position

lease assets increase, financial liabilities increase, and equity decreases

Impact on Statement of Financial Performance

Operating expenses decrease, Finance costs increase

Impact on Statement of Cash Flows:

Operating cash outflows decrease, Financing cash outflows increase

Measurement
This a 3 step process
1. Determination of the LEASE TERM taking into account (1) Extension options and (2) Termination options

2. Identify LEASE PAYMENTS considering Fixed payments, Variable lease payments and other factors.

3. Apply DISCOUNT RATE

Use the rate implicit in the lease, if readily determinable, otherwise, incremental borrowing rate
Blockchain Technology
Indian Institute of Technology, Kharagpur (Recorded videos)
(Department of Computer Science and Engineering)
Duration 3 hours
12/10/2019

Application of blockchain technology and its impact on businesses including financial institutions, national
governments, etc. How the blockchain system is secured.

Bitcoin – a decentralised digital currency

No government controls the currency
Transaction management and money usage

Money issuance
Bitcoin currency is generated during a process called bitcoin mining, achieved through complex mathematical
problems.

Medium Term Budget Policy Statement

Date: 30 Oct 2019
Minister of Finance
Duration: 1 Hour

Finance Minister Tito Mboweni delivered the Medium-Term Budget Policy Statement (MTBSP) to Parliament on
October 30.

Key points:

 Economic growth projections revised lower (0.5% in 2019, 1.2% in 2020) in the absence of progress on
structural reforms
 Progress in launching the Infrastructure Fund and identifying projects for public private partnerships
 R128 billion in provisional support for Eskom, subject to Eskom meeting some operational requirements.
 Current financial year revenue to decrease by R46 billion from the original February budget due to weak
growth in all tax categories
 Expenditure revised upwards due to additional SOEs financing.
 Fiscal deficit expected to balloon from 4.0% of GDP in 2017/18 to 6.5% of GDP in the 2020/21
 National Treasury looking at reduced growth in the public-sector wage bill and further tax increases
 Government gross loan debt increasing from 56.7% of GDP in 2018/19 to 71.3% of GDP by 2022/23, in the
absence of policy adjustments.
 A prudent debt management process is in place and its debt portfolio mix remains well managed by
international benchmarks.
 Disappointing economic growth in the absence of reforms.
 Structural reforms needed in order to reignite economic growth.
KING IV
Date: 16 Nov 2019
Reading: Institute of Directors South Africa
Duration: 3 Hours

King IV applies to all organisations. Talks of a governing body not the body of directors.

Differences between King IV and King III

1. King IV is outcome based - the governing body should attain the governance outcomes.
2. King IV aims to reduce the ‘tick box’ or compliance approach to applying governance practices.
3. King IV requires an “Apply AND Explain” approach to disclosure, as opposed to King III which was “Apply
Or Explain”.
4. King IV is more succinct than King III. It contains 16 + 1 principles applicable to all organisations.

Fundamental concepts and principles:

 Fundamental Concept - Ethical Culture

o Principles: -
 Ethical and effective leadership
 Ethical culture
 Responsible corporate citizenship

 Good Performance
o Principles: -
 The organisation’s core purpose, risks and opportunities, strategy, business model,
performance and sustainable development
 Performance and Reporting

 Governing Structures and Delegation

o Principles: -
 Board as custodian of good governance
 Board composition
 Effective board structures and delegation of authority
 Board performance evaluation
 Board/management relationships

 Governance functional areas

o Principles: -
 Risk governance
 Technology and information governance
 Compliance governance
 Remuneration governance
 Assurance

 Stakeholder relationships
o Principles: -
 Stakeholder-inclusive approach
 Responsible investment

Cybersecurity
Threats, Challenges, Opportunities
Date: 22 Nov 2019
Duration: 3 Hrs (Unverifiable)
Anthony Wong (President, Australian Computer Society {ACS})

This guide looks at some of the concerns facing us in the near future that include:
• Attack vectors such as botnets, autonomous cars and ransomware.
• Threats including data manipulation, identify theft, and cyberwarfare.
• Tangential issues such as data sovereignty, digital trails, and leveraging technology talent.

Cybercrime - Bringing down websites, stealing data, or committing fraud.

Cybersecurity.
The act of preventing cybercrime occurring in the first place or minimising its impact when it does.

The nature of threats

- denial of service attacks on websites through to theft,
- blackmail,
- extortion,
- manipulation,
- and destruction.

Tools
- malware,
- ransomware,
- spyware,
- social engineering,
- alterations to physical devices

IoT: Internet of Things

An evolving definition of the wide-variety of internet-connected devices ranging from sensors to smartphones.

Challenges that countries worldwide are currently dealing with regarding cybersecurity:
• The need for more collaboration to mitigate threats.
• Education and awareness; and
• The balance between privacy and security.

IFAC TAG Webinar on Cyber Security

Date: 26 Nov 2019
Presenter: IFAC
Duration: 1 Hour

Impact of breaches: -

Range of attacks
- Skimming details from websites
- Ransomware attack (business interruption,)
- Fraudulent email from senior staff (CEO impersonation)

Key themes
- Business to consider cyber issues in all their activities.
- Businesses should focus on their critical information assets.
- Businesses need to accept that their security will be interrupted.
- Most businesses don’t get their basis right.

80% of security breaches could be stopped

Audit Insights
 Widespread improvements and investments
 But many challenges remain
o Legacy systems
o Communication with boards
o Basic discipline
 New challenges are emerging
o Standards
o Regulations
o New technology

Cybersecurity is a business risk

Ever changing business landscape, which is technology driven
The governance gaps (not enough understanding)
Risk across people, process and technology
Involving threat actors and techniques

Opportunities for small business practices

 Malware is still a significant threat to SMEs with ransomware having the highest reported incidences
 Cost of downtime outweighs the ransom costs
 Construction, financial/insurance are the industries hit most
 Ransomware attacks are becoming more diverse

Opportunity #1 Quantify risk

 Average cost per lost or stolen record
 Factors that impact cost of data breach
 Estimate the impact of a data breach to your org.
 Determine the potential cost of an incident
 Evaluate cost of safeguards and risk mitigation strategies (Consider the cost of cyber risk insurance)

Opportunity #2 Governance and Risk Management

- Understanding cyber risks roles and capabilities
- Identifying areas of privacy risk
- Privacy/Cyber Engagements – scope of work
- Assess risk remediation plan and risk monitoring

2019 New Work Order: Should the CAS learn Coding

Date: 28 Nov 2019
Presenter: SAICA
Duration: 1 Hour

Valuable quotes
“Software is eating the world”
Every business will be digitalised in the near future

“If you are not digitally native you will die”

New technology disrupting the status quo includes:

 Artificial intelligence
 Robotics
 Blockchain

New opportunities arise because of digitalisation. Top jobs that did not exist 10 years ago include:
  Crypto Miner
 Driverless Car Engineer
 Etc

Accountants should always TEST, LEARN & CHANGE

Benefits to Coding
Coding will make one a logical thinker
Create tools to complete and solve tasks
One can perform large scale data analysis
You won’t feel irrelevant in this digital age

How to learn
 Python (the language) is the most data and numbers friendly
 Code Academy and Code.org are online and free

Robots are coming, coding is important, but so is focussing on human beings.

FUTURE CA
Empathy and focussing on human capital without losing sight of technology
Be knowledgeable and trusted, build relationships
Innovate around problems, systems and people

Other questions that matter

Are you a problem solver?
Are you moral?
Are you a hard worker?
Are you a good leader?