ABOUT AGA(SA)

Yes, the Code is applicable to all SAICA members and associates. A contravention of, or failure to comply with, any requirements of the Code, may be regarded as an offence in terms of Section 34.10 of the SAICA By-laws and, as such, may be investigated and, if appropriate, the member/associate may be found guilty and may be liable for penalties as described in the By-laws.

An associate is defined in the Code as: “a person who has been admitted and registered as an associate general accountant

(AGA(SA)) with the Institute and, therefore, entitled to use the designation ‘Associate General Accountant’ or ‘Associate General Accountant (South Africa)’ or the initials ‘AGA(SA)’.”

There is no minimum requirement for the compilation of annual financial statements of a company/close corporation. The Companies Act, No. 71 of 2008 does require financial statements that are ‘independently compiled and reported’ to be compiled by an Independent Accounting Professional. An AGA(SA) does qualify to be an Independent Accounting Professional.*

*Reference: Companies Act–Regulation 26(1) Regulation 26(1)(d) states that an Independent Accounting Professional is defined as:

• “a registered auditor in terms of the Auditing Profession Act, No. 26 of 2005 (“the APA”);
• a member in good standing of a professional body that has been accredited in terms of S33 of the Auditing Profession Act; or
• qualified to be appointed as an accounting officer of a close corporation in terms of S60(1), (2) and (4) of the Close Corporations Act, 1984.”

If there is no specific requirement/qualifications for the person to compile the annual financial statements, the AGA(SA) can compile annual financial statements.

Yes, an AGA(SA) does qualify to act as the accounting officer of a close corporation. Reference: Close Corporations Act, No. 69 of 1984. In terms of Section 60 of the Close Corporations Act, CA(SA)s and AGA(SA)s are recognised as accounting officers and therefore AGA(SA)s can act as the accounting officer of a close corporation.

An AGA(SA) can act as a Commissioner of Oaths due to the inclusion of the AGA in the Regulations to the Justice of the Peace and Commissioner of Oaths Act, No.16 of 1963.

Reference: Schools Act, No. 84 of 1996 “43.(1) The governing body of a public school must appoint a person registered as an auditor in terms of the Auditing Profession Act, 2005 (Act No. 26 of 2005) to audit the records and financial statements referred to in Section 42. (2) If the audit referred to in Subsection (1) is not reasonably practicable, the governing body of a public school must appoint a person to examine and report on the records and financial statements referred to in Section 42, who

1. is qualified to perform the duties of an accounting officer in terms of Section 60 of the Close Corporations Act, 1984 (Act No. 69 of 1984); or
2. is approved by the Member of the Executive Council for this purpose.”

With regards to independent schools, the Schools Act, No. 84 of 1996 states that the Member of the Executive Council must by notice in the Provincial Gazette state the requirements for independent schools, and AGA(SA)s will have to refer to the various publications to identify the requirements.

Yes, the Prescribed Management Rules contained in Annexure 8 of the Regulations state that an accounting officer may in certain circumstances be appointed to sign the annual financial statements.*

*Reference: Sectional Titles Act, No. 95 of 1986, Annexure 8 – Prescribed Management Rules“40. Audit

At the first general meeting and thereafter at every ensuing annual general meeting, the body corporate shall appoint an Auditor to hold office from the conclusion of that meeting until the conclusion of the next annual general meeting. Provided that where a scheme comprises less than 10 units, an Accounting Officer
may be appointed for that purpose and the Auditor
or Accounting Officer, as the case may be, must sign the financial statements. [Rule 40 substituted by GN R2345/90 and GN R1109/2005]”

Yes, the Non-Profit Organisations Act, No. 71 of 1997 states that an accounting officer must compile a report as identified in the Act.*

*Reference: Non-Profit Organisations Act, No. 71 of 1997 “113. The Non-profit Organisations Act 71 of 1997 governs non-profit Organisations. In terms of Section 17(2) of the Act, every registered Non-Profit Organisation must arrange for a written report to be compiled by an accounting officer, as defined in the Close Corporations Act 1984, and for this report to be submitted to the organisation. The accounting officer must report on the matters mentioned in Section 17(2) of this Act.”

“114. Section 17(2)(c) requires the accounting officer to state whether or not the organisation has complied with the provisions of the Non-Profit Organisations.”

Yes, if the legislation states that an accounting officer can compile certain reports or perform certain tasks, the AGA as a recognised Accounting Officer can compile the report/perform the tasks as listed. If the legislation/regulation require certain other qualifications, such as a Registered Auditor registered with the Independent Regulatory Board for Auditors or a CA(SA), then an AGA(SA) cannot perform the tasks required.

An AGA(SA), as a member of SAICA, will be allowed to register as a tax practitioner, with SAICA as their Registered Controlling Body subject to the same entry criteria applicable to CA(SA) members. These annual criteria include:

• Undertaking to and maintaining 15 hours tax CPD (60% verified), which record is maintained by member for at least five years;
• Has no criminal conviction for a dishonesty crime (theft, fraud etc.) or offence in the last five years;
• Has not been removed as member from another RCB for serious misconduct in the last five years;
• Is compliant in all his/her tax affairs (as of date of application/renewal, but we will take a position as to non-compliance thereafter if reported by SARS).