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• July 2010 Issue
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• focus
  • QE 1 Results & top 10 candidate profiles
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  • Budget Issues: Finance vs IT
  • GAAP and Tax
  • Tax Matters: Mind the Gap
  • The Role of the Auditor and the Companies Act
• in depth
  • M&A: capital structure
  • M&A: minority protection
• news
  • New learnership allowance (30min)
• life
  • Accountancy in Motion
    Mercedes Benz GL
  • HR Matters
    The Impact of Anxiety
  • Travel
    Ethiopia
  • Wine Route
    Cabernet Sauvignon
• CPD Verifiable Articles
  • Budget Issues: Finance vs IT (15min)
  • The Role of the Auditor and the Companies Act (30min)
  • GAAP and Tax (15min)
  • HR Matters
    The Impact of Anxiety (15min)

QE 1 Results & top 10 candidate profiles

The results reflect a decline in the pass rate, which now stands at 51% compared to last year's 58%.

A total of 2 921 candidates sat for the QE I, which is lower than the figure of 3 373 recorded in 2009. The declining pass rates may seem negative, but is a reflection of a number of factors including, the significant decrease in the number of first time candidates from distance learning universities, which are offset by a slight increase in first-time candidates from full-time residential universities.

The highlights of this year's results are the continued successes achieved by African first-time candidates. While the total number of candidates who wrote the 2010 QE I examination has decreased by approximately 10%, the number of passes of African first-time candidates remained similar to that of the prior year with 258 passes in 2009 compared to 242 African candidates who passed in 2010.  African passes now make up 20% of the overall number of passes, a number up from last year's' 17%. This can be ascribed to SAICA's transformation initiatives including the Thuthuka Bursary Fund programme. 

Only 140 Black repeat candidates passed the QE I in 2010, 60% of whom participated in the Thuthuka repeat programme, which has resulted in a higher number of Black repeat candidates passing than if they had no support at all.

SAICA understands the importance of ensuring that these repeat candidates pass QE I.  In this regard SAICA has put certain initiatives in place, in consultation with providers and employers.  SAICA continues to look at additional initiatives together with support from providers and employers as transformation initiatives remain important to SAICA.

This year's first position was shared jointly by three female candidates, from the University of Pretoria. Other highlights of the results include:

• All the top 10 qualifiers passed with honours (75% or higher);
• 25 candidates including the top “10”, passed with honours;
• Two of the honours candidates are Black;

Matsobane Matlwa, SAICA Chief Executive Officer (CEO), while congratulating the successful candidates emphasised that SAICA constantly monitors the first class standards of the qualification process. “The CA(SA) is an internationally recognised qualification and remains so because of the high quality and skills of CAs(SA) that qualify through the meticulous process. The challenge facing us as SAICA is to produce competent CAs(SA) without comprising standards.”

Additional QE I statistics can be found on the SAICA website at www.saica.co.za.

General comments on QE PART I

Objective
The primary objective of Part I of the QE, namely to test the integrated application of cognitive knowledge, candidates are tested on their ability to –

• apply the knowledge specified in the subject areas set out in the prescribed syllabus;
• identify, define and rank problems and issues;
• analyse information;
• address problems in an integrative manner;
• exercise professional judgement; evaluate alternatives and propose practical solutions that respond to the users' needs; and
• communicate clearly and effectively.

Overall comments on the paper
Overall comments received from universities indicated that the papers were of an appropriate standard for Part I of the QE. Questions were answered poorly by most candidates, as a result of a lack of basic knowledge and examination technique.

• The accounting questions were of a good standard as can be expected for QE I. The accounting questions were adequately integrated between accounting topics and also incorporated knowledge relating to taxation and management accounting. The questions required candidates to have a good knowledge of and solid foundation regarding the basic principles underlying the topics. Topics examined were relevant and of importance both in practice as well as in the academic syllabus.
• The tax questions were of an appropriate to high standard with most of the candidates passing the tax question in Paper 1 as the overall question comprehensively covered a number of general taxation issues in the academic syllabus. Despite this, candidates did not score as well as expected and markers continue to comment on the lack of candidate's basic and current tax knowledge.
• The management accounting and financial management questions were adequately integrated with financial accounting topics. The standard of the questions was considered appropriate. Presentation in general was poor, both in commentary and calculations. Candidates did not structure their solutions in a coherent manner that showed their logical thought path. Linking of theory points to the scenario was poorly performed and discussion of the questions in the context of the current economic climate was poorly handled by most candidates
• The audit question was challenging but of an appropriate standard. The question tested a wide variety of auditing and governance aspects of the syllabus in a practical manner. The question addressed the important phases of the audit process i.e. planning, internal controls, substantive procedures and reporting. The question was reasonably well answered by the candidates who attempted it and applied themselves to the information of the question and the requirements thereof. The section on ethics, corporate governance and the Companies Act was well answered. Candidates battled to identify key controls, or failed to provide proper explanations why such controls would reduce the risk of material misstatement. The section dealing with the impact of the penalty on the audit report was poorly answered.

In conclusion, a message to those who were unfortunately not successful in the examination:

Please start preparing for next years' examination in good time. Don't give up - sufficient preparation and a review of the basics will stand you in good stead for next year's exam!

Best of luck!

* * * * * * *

Top ten candidate profiles

Melissa Manley, 23 (Joint No: 1)

Position: Trainee accountant at Pricewaterhousecoopers
Why did you decide to follow the CA(SA) route?
I decided to follow the CA(SA) route as the qualification offers many diverse opportunities in the business world both in South Africa and internationally. It is also a challenging career path that is constantly changing and developing.
What are your expectations of your future and of eventually qualifying as a CA(SA)?
I am currently still in the early stages of my articles and therefore have not made any specific decisions regarding the future after qualifying. I am just focused on completing my training contract and qualifying as a CA(SA).
How did your company assist you during this period?
Pricewaterhousecoopers was very supportive during my studies. I was one of their bursary students so I was assisted financially to complete my studies, I was also give sufficient study leave to prepare for the QE.
Being one of the top 5 students means …
It is really an honour to be amongst the top 5 students. I am immensely happy and proud of the achievement.
Your general views on the standard of the CA(SA) route as set by SAICA
The CA(SA) route is really of an extremely high standard, it is definitely one of the most challenging qualifications that is why it is so well respected both locally and internationally. The route is very well structured and it provides students with a very good academic grounding with which they can enter the workplace.

Darren Roy, 23 (No: 4)

Position: First year trainee at : Ernst & Young
Why did you decide to follow the CA(SA) route?
I've always had an interest in business and finance, and always looked out for entrepreneurial opportunities. I chose to study toward a CA(SA) qualification knowing this will give me a good platform to enter the business world in the future, with well rounded business knowledge as well as practical training.
What are your expectations of your future and of eventually qualifying as a CA(SA)?
The road to becoming a qualified CA(SA) is definitely a long and challenging one. I expect that the high standard of the CA(SA) qualification will give me a great advantage in my career. I currently have various interests including Tax, Corporate Finance, and Investment Banking, and have not decided which route I will take after qualifying as a CA(SA). However, I am sure that the experience afforded to me in the next few years of my articles will expose me to various areas of business and assist me in this decision.
How did your company assist you during this period?
Ernst & Young have been extremely supportive of me over the past few years. I signed up with the firm in my matric year, and was fortunate to receive a bursary to fund my studies at the University of Cape Town. Ernst & Young have always been available to provide academic support, as well as answers to any queries I raised regarding the CA(SA) route.
Being one of the top 5 student means …
This has been great recognition for all the hard work I have put in over my school and university career. It is a privilege to attain such a high honour. It is satisfying to see the hard work paying off, and has motivated me going forward.
Your general views on the standard of the CA(SA) route as set by SAICA
The CA(SA) qualification is highly regarded throughout the world, and rightly so. It is highly challenging route and SAICA has done well to maintain this high standard over years.

Kyle Ewen, 22 No: 5)

Position: Trainee at Deloitte
Why did you decide to follow the CA(SA) route?
The expertise required to become a CA(SA) and the skills learnt along the path to becoming a CA(SA) are those that can develop an individual into a top business person. I have always had an interest in business and commerce and I believe that becoming a CA(SA) was congruent to my talents and my future career aspirations. Doing the CA(SA) route also exposes me to various types of businesses which will assist in developing a greater business knowledge, especially in commerce given that I am in the Financial Services division of Deloitte. I hope that achieving my CA(SA) qualification will give me the knowledge, experience and expertise needed to succeed in my future career aspirations.
What are your expectations of your future and of eventually qualifying as a CA(SA)?
I have high expectations for myself for my future - starting with achieving a top ten position for QE2, and then moving onto achieving well in business. I have no specific goals as yet, other than achieving well. Success for me will be defined by a good and well paid job using my knowledge as a CA(SA), and a good family life.
How did your company assist you during this period?
Deloitte was very helpful in assisting me preparing for QE1. Deloitte registered me and paid for my Board Course and QE1 exam. This took a lot of pressure off me and allowed me to focus on my studies. Deloitte was also very helpful in assisting me move from my hometown of Somerset West to Johannesburg where I am now working.
Being one of the top 5 student means …
that hard work pays dividend. I approached this exam knowing that I could come in the top 10 due to the fact that I have put in the time and effort required in my degree and honours. But I also understand that coming fifth is not the final chapter of my CA(SA) journey and that there is still a lot needed to be done by me. I will continue to push myself to achieve excellence and hope that my future endeavours are as successful as those in the past have been. I hope that coming fifth does not define me, but is a catalyst for me to achieve more greatness in the future. Coming fifth though, is still one of the proudest moments of my life as it is something I had my sights set on for quite a long time.
Your general views on the standard of the CA(SA) route as set by SAICA
I believe the current standard is perfect - It is not so unreasonable that only a few can reach it, but it is still a challenge and requires effort to achieve. It is a standard that rewards effort and hard work. The CA(SA) designation is viewed as a sign of distinction not only in the field of audit, but in business and commerce in general. It is thus imperative that SAICA maintains a standard that will keep the integrity of the CA(SA) designation intact.

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