South African Institute Of Chartered Accountants Research Articles

Delineating the parameters of integrated thinking: A synthetic literature review

Background: Many accounting professional bodies, of which the South African Institute of Chartered Accountants (SAICA) is one, expect academics to develop integrated thinking skills in their students during higher education. Integrated thinking is, however, often confused with critical thinking, systems thinking and design thinking.Aim: This article aims to delineate the concept of integrated thinking by analysing the similarities and differences between integrated thinking, integrative thinking, critical thinking, systems thinking and design thinking.Conclusion: Integrated thinking is a higher-order thinking skill with a strong emphasis on the ability to think in a creative manner. Although there are differences between integrated thinking and other higher-order thinking skills, there are also similarities. This article sets integrated thinking apart from other higher-order thinking skills.Contribution: Limited research has been conducted to distinguish integrated thinking from integrative thinking, critical thinking, systems thinking and design thinking. This article endeavours to identify the true nature of integrated thinking by comparing it with other higher-order thinking skills. If lecturers at higher education institutions are to develop integrated thinking skills, it is important for them to have a clear understanding of what integrated thinking is, and how it differs from other thinking models. Without a grounded understanding of what integrated thinking is, it is nearly impossible to develop it in students.

Barriers towards research activities among academics in the chartered accountancy stream at the North-West University, South Africa

Generally, departments of accounting at universities in South Africa that are accredited by the South African Institute of Chartered Accountants (SAICA) mainly focus on teaching the syllabus as prescribed by the Institute. There is no research methodology module in this syllabus neither at undergraduate nor honours level. To qualify as a chartered accountant, one needs to pass an honours degree in accounting and write and pass two board exams. A qualified chartered accountant (CA/SA) will most likely encounter a research methodology module for the first time at master’s-degree level. Since 2008, in addition to teaching and learning and community engagement, the departments of accounting have embraced their scholarly activities, which include supervision and/or publishing. As a result, there is an increased effort by the departments of accounting to have its staff members with a chartered accountancy qualification to enrol for master’s and doctoral degrees (De Jager, Lubbe, Papageorgiou 2018). It is commonly believed that it seems easier to supervise students or write articles after attaining these qualifications. The purpose of this study was to investigate the barriers that are encountered by academics from a chartered accountancy background to engage in scholarly activities willingly. A qualitative research approach was followed in this study and data was collected by means of interviews. The population was accounting academics at the North-West University. The analysis of data was done qualitatively by means of thematic analysis. The findings revealed barriers such as not knowing where to start due to lack of background or knowledge in conducting research, time, workload, lack of management and lack of access to experienced mentors.

Unpacking student perceptions of board game mechanics

The boardroom challenge is a custom developed board game used as a formative assessment in an undergraduate business management course. The course forms part of an Accountancy degree which culminates in the professional designation of members to the South African Institute of Chartered Accountants (SAICA). Students are required to develop skills and competencies towards future membership of their professions professional body. To this end an industry employer and training company partnered with the University to develop students’ business acumen utilizing gamified learning in the form of a custom developed board game. The boardroom challenge has taken place annually from 2015-2019 and commenced again in 2022 when Covid-19 regulations permitted. On game day students compete in randomly assigned groups of six with an industry game master at each table as a facilitator. Students and facilitators complete questionnaires after the boardroom challenge providing feedback and suggestions. Open ended feedback from 2015-2019 has been thematically analysed to evaluate perceptions on game mechanics. Game mechanics include rolling the dice to determine which scenario students need to address. During the game students have to answer theory questions or address scenarios, depending on what the dice causes their game piece to land on. Correct answers earn currency in the game and students display their new rank in the organisation with each correct answer. Moving up the salary scale tops out at CEO after which students can begin to earn shares. Turn taking is regulated by a timer, to ensure everyone has sufficient turns while industry based game masters make the final call on the appropriateness of answers to open ended scenario type questions. The board game generates great excitement and engagement from students with several preparatory activities scaffolded into tutorials before game day. Students’ perception of the various game elements and mechanics indicate their evaluation is dependent on how they have conceptualized the impact of specific mechanics on their marks. As a mitigating factor, the data was gathered and analysed over many years.

Information communication technology integration via Bloom’s taxonomy in accountancy curriculum

Accountants should stay relevant to the business world, making Information Communication Technology (ICT) competencies essential, as highlighted by professional bodies and employers. For this reason, how and when ICT competencies can be integrated into the accountancy curriculum following the guidelines of Bloom’s taxonomy was investigated. ICT competency integration into the accountancy curriculum remains a challenge at South African universities, further highlighted by online teaching during the COVID-19 pandemic. This research followed a qualitative approach. Data collection was done through a literature review of Bloom’s taxonomy, ICT requirements from the South African Institute of Chartered Accountants (SAICA) and employers, responses from a self-developed questionnaire from lecturers of two participating universities focusing on the perceived inclusion of ICT competencies and when these competencies should be taught in the accountancy curriculum. The participants agreed with the inclusion of MS Excel and MS Word with a discrepancy of when.Contribution: Based on the sample selected, the results highlighted that how and when ICT competencies could be integrated is not in line with Bloom’s taxonomy approach. It is recommended that universities integrate ICT competencies for MS Excel and MS Word in the accountancy curriculum through the assignments already available in a structured and scaffolded approach. This research contributes to the body of knowledge of how and when ICT competencies can be integrated into the accountancy curriculum. Higher education must keep up with the fast-changing business environment and aim to transform their learning accordingly through applying Bloom’s taxonomy in a holistic view when integrating ICT competencies within the accountancy curriculum.

Towards Global Citizenship Education: Implications for the South African Higher Education Accounting System

This article builds on prior calls to liberalise accounting education both globally and within a South African context, where the accounting curricula tend to have a technical and vocational bias. The authors specifically focus on the chartered accountancy (CA) education landscape in the country, where they call for the adoption of global citizenship education (GCE) within the CA education curricula. The authors’ contention is that if notions of GCE manifest within the CA education landscape, they increase students’ chances to become liberated and empowered. Additionally, they argue that adopting notions of GCE within the CA education pedagogy is vital to the development of citizenship competencies and relational acumen as outlined by the new CA2025 competency framework drawn up by the South African Institute of Chartered Accountants (SAICA). Finally, the authors contend that there are significant challenges to implementing GCE within the current CA education context, but they contend that these challenges do not minimise the urgent imperative for CA education to produce chartered accountants (CAs) who are both technically astute, as well as socially and ethically aware, within a global context.

Clashing Goals of SAICA and South African Universities: A Need for Reflection and Realignment

This article recognises the conflicting goals of the South African Institute of Chartered Accountants (SAICA) and the faculties of commerce in South African universities. To achieve the central aim of the study, a qualitative approach based on a literature review was applied. The study argues that the excessive focus of SAICA on the chartered accountancy route prevents accounting research in the country and is thus in conflict with the research objectives of faculties of commerce in South African universities. Based on this argument, the study suggests a realignment of objectives. Conflict resolution demands that the teaching and research route in the accounting mentorship programme be promoted and incentivised by creating funds to augment the salaries of lecturers in the SAICA-accredited accounting departments in the country. This realignment will further strengthen the resolve of both SAICA and faculties of commerce in universities to produce world-class higher education and chartered accountants.

4th Industrial Revolution skills in the current South African accountancy curricula: A systematic literature review

The business environment has seen rapid changes due to the Fourth Industrial Revolution (4IR) and the influence of exponential technological advancements. The enhancement of technology-based work environments has changed the skill set needed by graduates entering the workforce. In this regard, higher education institutions have shown signs of struggling to adapt curricula to prepare graduates with the skills needed by the fast-changing workforce environment. The South African Institute of Chartered Accountants (SAICA) developed a framework with competencies aimed to address the needed graduate skills, and for institutions to use as guiding documents in the amendment of their curricula. In this regard, the purpose of this study was to evaluate the top universities in South Africa’s accountancy module documents to determine whether the curricula are addressing the 4IR workforce needs. The SAICA-proposed competency framework (2025CF) was used as a conceptual framework for the evaluation of the university’s curricula documents, and findings indicate that universities still need to make substantial changes in order to include newly-added pervasive skills as prescribed by 2025CF. Findings from the systematic literature review indicate that universities adequately address business acumen skills; however, the categories of digital-, relational and decision-making acumen were insufficiently evident within the current curricula of the top five South African universities. The apparent lack of specific skills development for graduates needs urgent attention considering the technological changes brought on by the 4IR within the accountancy domain.

Who is responsible for developing the non-core skills of entry-level public sector trainee auditors: the case of the Auditor-General South Africa

Within the context of rising levels of corruption, financial mismanagement, fraud, and irregular, fruitless and wasteful expenditure in the South African public sector, as well as high profile audit failures, this paper investigates the employment readiness of recent auditing graduates, with particular emphasis on their non-core skills proficiency. The observations are based on a survey of respondents involved in appointing and training aspiring chartered accountants at the Auditor-General South Africa (AGSA). Aspirant auditors graduating from South African Institute of Chartered Accountants (SAICA) accredited universities lacked the necessary non-core skills entry-level trainee auditors at expected levels of proficiency, necessitating additional training interventions. However, universities should not be solely responsible for developing all the skills of competent public sector auditors. Instead, an integrated and collaborative effort by the key stakeholders in the auditing profession is required. These parties include universities, audit firms and professional bodies, the students themselves, as well as other parties such as regulators. Despite extant studies examining the employment readiness of auditing graduates, this is one of the first that specifically focuses on the phenomenon within the public sector.

Predictors of academic success in postgraduate auditing in the Chartered Accountancy programme at a South African university

South African universities that offer the accredited Chartered Accountancy [CA] programme are monitored by the South African Institute of Chartered Accountants (SAICA) to ensure that the programme meets SAICA’s requirements in terms of the standards of teaching and learning. The monitoring includes a scrutiny of the academic success of students with regard to pass rates and throughput rates. This inevitably results in universities not only focussing on the academic success of students, but also predicting the success of their students. Much of the existing research focusses on the success of first-year students in the subject field of financial accounting, or success overall at postgraduate level. This article aims to bridge the gap in the research field by exploring academic predictors of success for postgraduate students in the accounting programme, with reference to a specific module ‒ namely, auditing ‒ at a South African university over a period of five years (2014‒2018). The objectives are to determine the extent to which selected grade-12 subjects (maths and language); admission requirements, namely the Admission Point (AP) score and the National Benchmark Test (NBT); as well as undergraduate performance could predict the success of a postgraduate module. Drawing on quantitative data, the findings indicate that the grade-12 subjects and admission requirements do not have a positive correlation with academic success, with only a few selected undergraduate level modules predicting academic success.

Chartered accountancy and resistance in South Africa

In recent times, the chartered accountant profession was regularly in the news for reasons pertaining to the unethical and unprofessional behaviour of members. The profession has an important role to play in the South African economy, as members will often fulfil important decision-making roles in business. In a response to the dilemmas the profession is facing, we analysed the implications for the profession and society due to a resistance to include research as a pedagogical activity in the chartered accountancy educational landscape. Through deliberative research activities, students have the opportunity to engage with community members and with societal challenges that could foster reflexivity and humaneness in students. In addition, critical and problem-solving skills are cultivated. These are skills that are difficult to assess in the form of an examination, and the absence of research as pedagogical activity in this particular educational landscape, impacts the cultivation of these skills in future chartered accountants. This is so, as the chartered accountancy educational landscape is significantly influenced by the power that resonates within the profession and culminates into the disciplinary power mechanism of the examination. The South African Institute of Chartered Accountants (SAICA) set an external examination, called the Initial test of Competence (ITC), which graduates need to write upon leaving institutes of higher learning. Success in this SAICA-examination therefore impacts on the teaching and learning pedagogy adopted by chartered accountants in academe. If chartered accounting students were instead primarily being exposed to technical content assessed via an examination, also being exposed and introduced to deliberative research, the possibility exists that students, through critical reflexivity, could move beyond the constraints of the self to that of the communal other in line with the African notion of ubuntu can be enhanced.

University accounting programmes and the development of Industry 4.0 soft skills

Orientation: The Fourth Industrial Revolution (Industry 4.0) is anticipated to have a significant impact on the future generation of professional accountants. Accordingly, current and aspirant accountants are expected to acquire and develop soft skills, which will enable them to add value as responsible business leaders and thrive within Industry 4.0. Research purpose: The overarching purpose of this study was to elicit the perceptions of entry-level chartered accountants in South Africa (CAs [SA]) on the development of soft skills during a university accounting programme, specifically those soft skills demanded by Industry 4.0. Motivation for the study: Limited research appears to exist with specific focus on the perceptions of entry-level CAs(SA) regarding the development of soft skills during a university accounting programme. Research approach/design and method: University accounting programmes accredited with the South African Institute of Chartered Accountants (SAICA) were the focus of the empirical work. A questionnaire was used to obtain the exploratory results, which yielded a response rate of 40.77%. Main findings: The quantitative results indicated that the particular accounting programme in question was perceived to have developed most of the soft skills required by Industry 4.0. Practical/managerial implications: One of the implications of this study is that the university accounting programme providers should place more emphasis on the development of soft skills, specifically those related to Industry 4.0. Contribution/value-add: The results of this research contribute to the existing body of knowledge by articulating the views of entry-level CAs(SA) on the development of Industry 4.0 soft skills.

Accountancy students’ and lecturers’ perceptions of the effect of open-book assessments on writing examinations

Open-book assessment (OBA) can contribute to the development of competency in handling large amounts of information in the knowledge economy. This is one of the reasons why the South African Institute of Chartered Accountants (SAICA) implemented OBA for its Initial Test of Competence. This empirical study investigated final year accountancy students’ and lecturers’ perceptions of the effect on writing examinations after their method of assessment changed from a closed-book (CBA) to an open-book assessment format. Students and lecturers perceived a change in writing behaviour, reduced anxiety, and improved performance. On some aspects the level of agreement between students and lecturers differed significantly. There is also evidence that African students perceived OBA to be less beneficial compared to the perceptions of white students. For subjects for which substantial texts were available, students perceived the least change happened for Auditing while lecturers perceived the least change for Financial Accounting. Both students and lecturers perceived the most change happened for Taxation. It is important that lecturers at departments of accountancy take cognisance of these perception gaps and to adjust their teaching to enable their students to utilise their texts as an additional resource optimally. This study is also of value to the regulatory bodies to evaluate their assessment practises.

Developing professional competence in accounting graduates: An action research study

In 2014, the South African Institute of Chartered Accountants (SAICA) introduced the Assessment of Professional Competence (APC) as its final professional examination. The APC is an eight-hour case study assessing both the technical knowledge and pervasive skills that together represent the professional competence required of accountants entering the profession. In order to write the APC, candidates must first complete a preparatory programme designed to develop professional competence.This paper adds to the accounting education literature by identifying themes in programme design that informed the effective development of professional competence in the preparatory programme context. A four-year action research study was conducted. The initial programme design incorporated learning tools identified in the literature as effective in developing professional competence. Feedback from participating candidates was then elicited to assess the perceived contribution of each of those learning tools. This feedback was incorporated into the revised design of the next year’s programme, which was again assessed through candidate feedback. This cycle was repeated three times.The findings of this study are presented as themes emerging from the action research cycles. The study found that assessment continued to drive learning, while ‘value-adding’ material made little positive contribution. Skills development was found to be more effective when it was explicit. Individual feedback, groupwork and mentorship contributed positively to the development of professional competence, while the contribution of lectures was less clear. The study also found that large class sizes presented practical challenges to the implementation of effective learning tools.

The development of management accounting skills in situations where practical exposure is limited: The perceptions of training officers in South Africa

Training office auditing firms in South Africa are required by the South African Institute of Chartered Accountants (SAICA) training regulations to provide basic exposure to trainees in management accounting. The purpose of this paper was to determine (1) the ways in which large, medium-sized and small training office auditing firms in South Africa evaluate the competency of trainee accountants in the field of management accounting, (2) to what extent alternative skills transfer methods are used and (3) the perceptions of training officers of the use of simulation as a skills transfer method. A web-based questionnaire was used.This study showed that simulated training, either in-house, outsourced or a combination of the two, is actively used by a number of training office auditing firms in South Africa in order to assess competency in the field of management accounting where practical exposure through performing actual tasks is limited. The study also revealed that training officers perceive simulation to be effective in the assessment of competency in management accounting residual skills competency areas.The research is valuable to SAICA and training office auditing firms, as it provides an overview of how skills in management accounting are transferred to trainee accountants.

The expected impact of the implementation of International Financial Reporting Standard (IFRS) 16 – Leases

Orientation: The new standard on leases, International Financial Reporting Standard (IFRS) 16, will require the majority of lessees to account for lease arrangements on the face of the balance sheet. This is in contrast to the current standard and, as a result, the effects of this transition to on-balance sheet finance require analysis.Research purpose: The purpose of this article is to identify and examine the material change implications that may arise from the implementation of IFRS 16 and determine its effect on both preparers and users of the financial statements with a specific focus on lessee accounting.Motivation for the study: Leasing is a widely used economic transaction that affects the majority of corporates and individuals. There is a lack of formal academic literature surrounding the possible implications of the new accounting standard in a South African context.Research approach, design and method: The authors performed a detailed literature review as well as gathered information at a public debate held jointly by the International Accounting Standards Board (IASB) and the South African Institute of Chartered Accountants (SAICA) to investigate what the implications may be.Main findings: This article finds and concludes that there are potentially six change implications. The affected parties were identified as lenders, preparers and analysts with the banking and retail sectors requiring the most consideration.Practical/managerial implications: Care will need to be taken when new lease transactions are entered into so that the entity still adheres to potential liquidity and solvency targets as well as loan covenant obligations.Contribution/value-add: The normative and qualitative style sheds light on the effect of the imminent changes to South Africa’s financial reporting structure, making an important contribution to financial reporting knowledge, transparency and accountability.

Teaching pervasive skills to South African accounting students

Professional accountants need to retain and maintain a broad skills set. In response to this need, the South African Institute of Chartered Accountants (SAICA) emphasises the mastering of pervasive skills in its competency framework and expects South African universities offering its accredited programmes to produce graduates able to demonstrate such skills at acceptable levels of competence upon entry into the workplace. This study investigates the manner in which SAICA-accredited South African universities offer and teach pervasive skills, and attempts to determine whether heads of departments have identified the teaching of these skills as being the responsibility of the university, or not. These views were solicited through an e-mailed questionnaire. The study found that although the development of pervasive skills is an outcome largely included in these accredited undergraduate programmes, their presentation and integration into the courses vary considerably, and more integration of pervasive skills into course majors should be considered. Teaching methods and practices followed by the universities show significant diversity, and this result corresponds with those reported elsewhere in the literature. It is a concern that there is only limited use of research-based projects in these undergraduate programmes. An interesting finding of the study was that heads of departments perceive the acquisition of some pervasive skills to be best achieved in the real-world, practical workplace, rather than in the theoretical confines of the universities’ lectures and tutorials.

The South African chartered accountant academic

PurposeAccounting academics in the South African system understand their primary responsibility to be the teaching of prospective Chartered Accountants (CAs) rather than the advancement of knowledge through research. The purpose of this study is to determine what factors motivate accounting academics who are CAs to obtain doctorates in an environment dominated by the profession, where promotion is possible to Full Professor without a Doctorate but not without the professional qualification of CA. And did these doctoral CAs face challenges on their journey, such as resistance from colleagues?Design/methodology/approachA total of 22 academic CAs with doctorates and 18 academic CAs studying towards doctorates were surveyed to gain a deeper understanding of who they are, what their motivations were for undertaking the doctorate journey and what they experienced.FindingsThe main finding of this study is that the culture of accounting departments in South Africa is beginning to shift from being teaching orientated towards being more research orientated. The CAs are pursuing doctorates for the purpose of career progression and for intrinsic personal reasons. The main challenges that they faced on their journey were finding the time for family and a social life and a lack of support from colleagues and their institution. However, support seems to be improving.Research limitations/implicationsThe change to a research-orientated culture in South African departments of accounting, as envisioned by Van der Schyf (2008), is only now starting to take place. These CAs with doctorates provide evidence of that change.Originality/valueThe value of this study is to provide accounting academics and the profession with a better understanding of, and a greater sensitivity to, accounting academics operating under the influence of the South African Institute of Chartered Accountants (SAICA). The study also adds to the limited amount of literature on the motives and experiences of doctoral students, especially accounting doctoral students.

The accounting profession and education

PurposeThe purpose of this paper is to examine how the actions of the accounting profession, the state, universities, and academics have inhibited the development of South African accounting research.Design/methodology/approachA multiple history approach using traditional archival material and oral history is used.FindingsSince the late nineteenth-century, a network of human and non-human actors has ensured that accounting education in South Africa retained a technical focus. By prescribing and detailing the accounting syllabuses required for university accreditation, the South African Institute of Chartered Accountants (SAICA) and its predecessors exercise direct control over accounting education. As a result, little appetite exists for a discipline based on academic enquiry or engagement with international scholars. While the SAICA claims to support accounting research, this support is conditional on its meeting the professional body’s particular view of scholarship.Research limitations/implicationsThe limitations associated with this research are that it focusses on one particular professional body in one jurisdiction. The South African situation provides a cautionary tale of how universities, particularly those in developing countries, should take care not to abdicate their responsibilities for the setting of syllabi or course content to professional bodies. Accounting academics, particularly those in a developing country currently experiencing major social, political, and economic problems, are in a prime position to engage in research that will benefit society as a whole.Originality/valueAlthough actor network theory has been used in accounting research and in particular to explain accounting knowledge creation, the use of this particular theoretical lens to examine the construction of professional knowledge is limited. This study draws on Callon’s (1986) four moments to explain how various human actors including the accounting profession, the state, universities, and accounting academics, along with non-human actors such as accreditation, regulation, and transformation, have brought about South African academic disengagement with the discipline.

Accounting for revenue using an accountability and business model framework: The case of the South African Institute of Chartered Accountants’ professional examinations

This research adopts a normative approach. It builds on the academic literature which argues that the usefulness of financial reporting can be enhanced by aligning accounting for balances and transactions with an organisation’s business model, as presented in its integrated report. This is done using examination fees collected by the South African Institute of Chartered Accountants (SAICA) as an example. The research demonstrates how SAICA’s business model can be used to inform the identification of contracts with customers; the definition of performance obligations and conclude on the timing of revenue recognition under IFRS 15: Revenue from Contracts with Customers. In turn, this provides a useful practical example of how, in general terms, an organisation’s business model can be used to provide a more transparent account of financial performance. The research also makes an important contribution by showing how, without requiring amendments to existing accounting standards, financial reporting can be informed by details on the value creation process explained in a company’s integrated report.

SAICA's academic traineeship programme: would guidelines facilitate focused skills development?

The South African Institute of Chartered Accountants (SAICA) developed the Academic Traineeship Programme (ATP) to give trainee chartered accountants (CAs) the opportunity to complete one of their three training years in an academic environment. The structure and guidelines of the ATP should be reconsidered given changes in the overall CA (SA) Training Programme (e.g. increased focus on the development of the prescribed competencies, especially pervasive skills) and in the academic environment (e.g. increased emphasis on research). This article presents the findings of a study that surveyed current academic trainees and found that they spend most of their time on the presentation of tutorials, marking of assessments and student consultation. The surveyed academic trainees believe that stricter guidelines for how they spend their time would be beneficial; also, they would prefer to do more lecturing and research. Guidelines are proposed based on an inclusive stakeholder model and on SAICA’s Competency Framework, which shows increased focus on research and the setting of assessments.