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Results for the second sitting of the South African Institute of Chartered Accountants (Saica) qualifying examinations have been the worst in the past six years.
Only 14% of the 1 144 candidates who sat for the second sitting of the Initial Test of Competence (ITC) this year passed.
This is compared to 40% who passed last year and 25% who passed in 2022 for the second exam.
The two qualifying examinations (January and June) assess how well a candidate can apply the technical competence they acquired through the academic programme. The combined pass rate for the January and June 2024 examinations was down to 49% from 66% the previous year.
Saica CEO Patricia Stock said in a statement the institute remains steadfast in its commitment to create a “robust pipeline of students” and newly qualified chartered accountants (CAs).
This is despite the pass rate being much lower than in previous years.
Education system
The institute says it continues to be concerned about the performance of the June ITC candidates. “More needs to be done to support candidates, especially those repeating the ITC.”
According to Stock: “It is well-documented that there are challenges within the basic education system, particularly the low number of learners who pursue mathematics at school and subsequently those who pass mathematics with the required minimum of 60% for entry into a CA-stream.”
She adds that chartered accountancy is a scarce-skills profession. Saica is therefore competing for its share of a diminishing pool of talent.
“While the percentage intake of aspiring CAs at a university level has remained relatively stable over the past few years, the fact remains that fewer learners are entering the system due to issues within the education system, including the mathematics crisis.”
Time gap
Khaya Sithole, a chartered accountant and columnist, says evidence shows that candidates who write the assessments right after completing their studies stand a much better chance of passing.
“What happens with the June assessment is that that population is dominated by candidates who are either repeating or have had a much bigger gap from the time they were at university to the time that they write the assessment.”
Sithole says historically, the trends have shown that the June pass rate is always lower than the January sitting.
The June results fluctuate, coming in at 14% this year, 40% last year, 24% in 2022, 59% in 2021, and 22% in 2020.
The January pass rate for this year was 67% compared to 75% last year, 59% in 2022, 64% in 2021 and 59% in 2020.
The secondary problem is that the exams, like any other assessment, may sometimes be more challenging than others.
“I think this one was clearly on the upper end of the difficulty scale for these candidates. The combination of the two did in fact translate into an outcome that was really disappointing for everyone,” Sithole adds.
Distance learning
It appears that a substantial number of African candidates complete their studies through accredited distance academic providers. Saica says it is imperative for these institutions to continuously evaluate the effectiveness of their programmes and make necessary adjustments to support their students to prepare adequately for the Saica examinations.
“It is evident that further efforts are required to support students studying at distance institutions and to provide additional assistance to candidates from these institutions who are repeating the ITC.”
Support from the training offices and employers may include a review of the time candidates are allowed to focus on their preparation for the January 2025 IAC (Initial Assessment of Competence).
A recent study examining the performance of black students studying accounting found that their experiences in accounting programmes, and consequently their performance, may be significantly influenced by factors such as language, social, family, and cultural backgrounds.
This article first appeared in Moneyweb and is republished with permission.
